How much are solicitors’ fees when buying a house? And what does a conveyancer actually do?

The title of this post contains two of the most regularly asked and frequently googled questions when people are buying a house. And we understand why. Conveyancing is a world that can sometimes feel frustrating and shrouded in mystery when buying a home, and buyers aren’t always clear on what their solicitor is doing for them. So, have a read and let us explain in this Q&A…

Q: How much are solicitors’ fees when buying a house?

A: Conveyancing solicitors tend to charge a fixed fee that usually falls anywhere between £500 to £1500, plus VAT and disbursements (explained further down). The price will usually be based on the amount of time your conveyancer believes they will need to spend on the matter, and the level of risk they think is involved. 

Q: What influences or dictates what my fees will be?

A: There are normally two main factors that will influence how much you’ll pay in fees; the purchase price of the house you’re buying, and how complex the transaction is for the solicitor to complete.  

For example, purchasing a leasehold flat will tend to require much more of a solicitor’s time than one that is freehold. There will be a lease of around 50 pages for the solicitor to read through and a range of ancillary documents that they will need to review; all of which will take them much more time, therefore pushing up the fee. It’s much the same as a joiner quoting to fit a kitchen – if the joiner thinks it will take them five days to do the job, they will quote for those five days. 

Solicitors are insured in case things go wrong, and so the level of risk for an individual transaction is factored into the fee quote. For example, acting for a client who is buying a piece of land to build a house that is going to annoy the neighbours poses much more of a risk to the solicitor than acting for a client buying a terraced house that hasn’t been changed for 50 years. 

Q: What does the solicitor actually do when buying a house? 

A: In the simplest terms, they transfer the legal title of a property from one person to another. However, buying a house is a huge investment, so it’s crucial you know exactly what you’re buying and that you really do own it in the eyes of the law. This is where conveyancing solicitors come in. 

Q: What do conveyancers actually do?

A: Firstly, solicitors will ensure they comply with money laundering procedures expected of them, which is why as a buyer, you must provide identification and proof of funds as to where you are sourcing the money to purchase the property. 

Then, they will contact the seller’s solicitor to obtain a draft contract and other necessary documents, such as the title deeds for the property you are buying, before working through these documents to see what needs to be investigated further as part of the process. There are often issues with adequate rights of way, relevant consents for recent work carried out, and onerous clauses in the deeds that could restrict the buyer on what they can do with the land. The conveyancer will also establish if the property you are buying is freehold or leasehold. 

Next, they will carry out searches on the property you are buying to uncover any potential hidden risks or points to be aware of, such as any planning consents given, road adoption agreements or restrictions on the property due to its location. The other main searches they will carry out include a Regulated Drain & Water Search, Envirosearch, Chancel Indemnity Policy and a Land Registry Title Plan search.  

If there is a mortgage lender, the solicitor is expected to act for them also, and manage their many requirements, which can include things like establishing where the balance monies have been raised from, or specific terms the mortgage lender needs including in a lease to make it compliant with their requirements. 

Once all the information is collated, the conveyancer will prepare a report for you to run through any risks associated with the property you are buying. 

When your solicitor is satisfied with their searches, any questions have been answered and there are no issues outstanding, you will exchange contracts. Usually, your deposit is paid at this stage, your conveyancer will exchange contracts for you, and the purchase becomes legally binding. By exchanging contracts, you fix your completion date; a date that everyone in the chain needs to agree on.  

Your solicitor will then send you a final statement showing you how much money you need to pay, including any mortgage, and this sum will need to be cleared into your solicitor’s bank account at least one day before the day of completion. 

Q: You mentioned conveyancing disbursements earlier? What are they?

A: Conveyancing disbursements are third party costs incurred by the solicitor. For example, the solicitor will need to download deeds from the Land Registry and submit searches with the local authority, all of which incurs a cost. This cost is then charged back to the client and is separate to the fee payable to the solicitor. 

Q: What additional fees might I have to pay?

A: This is where you need to be careful. Often, you can be enticed by a low headline rate, yet your bill will be end up being significantly more.  

Some solicitors will have a very long list of additional charges that can range from charging for a gifted deposit letter, right through to a charge to exchange and complete on the same day. These charges are often justifiable as there will often be additional work involved for the solicitor, but as with anything, the cheapest is not always the best. It’s always a good idea to discuss your case with your preferred solicitor and ask them to make you aware of any areas where additional costs could be incurred, before you instruct them. 

Q: When should I pay the solicitor when I’m buying a house? 

A: Generally, you should pay on exchange of contracts or on completion. Some solicitors may ask for a small fee up front to cover disbursements, and some operate on a no completion, no fee basis. Again, you should check this at the outset. 

Q: How do I compare solicitors’ fees for buying a house?  

A: There are comparison sites around but be wary. These sites will most probably provide a low upfront fee, but then add additional costs at a later stage. It’s always much better to obtain a recommendation from a friend or local professional who will deal with many of the local solicitors.  

Be cautious about choosing a solicitor purely based on fee. Instead, it’s a good idea to enquire with a few different firms to ascertain who you feel most comfortable with. Ask questions about who will be dealing with your file, what experience that person has, how you will be contacted and kept updated throughout the transaction, and what additional fees you might expect on top of the fee quoted. 

 A house is probably going to be the most expensive asset you’ll ever purchase, and you want to feel comfortable that the person you’re dealing with has the right skill set. There is nothing worse on the day of completion than trying to find out where your keys are and having to speak to a call centre with an unknown person who is not familiar with your file. 

 Q: What are the solicitor’s fees for buying a house with cash?  

 A: When you buy with cash, solicitors’ fees will not vary significantly from those if you were purchasing with a mortgage. Be aware though; the solicitor may still charge an additional fee for acting for a lender - which is fair given the increased time the solicitor needs to spend on the file -  but it shouldn’t be a huge amount. A fee anywhere between £50 to £250 is usual for acting for a lender. 

If you are buying a house and would like to enquire about working with Holden Smith’s team of professional conveyancers, please contact us here, email hello@holdensmith.co.uk or call us on 01484 55 66 77.