Pricing for Residential Conveyancing

At IBB Law we like to, in very clear and simple terms, respond to the principal questions that clients have about working with a solicitor, namely

• What are you going to do for me?
• What aren’t you doing for me?
• Who is going to do it?
• When will it be done by?
• How much is it going to cost?

In relation to our costs, we have a philosophy of ‘no surprises’. That puts the onus on us to address the questions above as transparently and as simply as possible.

As far as practicable, we also endeavour to provide clients with pricing choice. This recognises the fact that clients have different priorities and even the same client can have different pricing and payment priorities on different transactions or matters.

When we provide you with an estimate we will also provide you with a job specification that answers in clear and straightforward terms the above questions.

Below are some examples of our firm’s pricing options in respect of various transactions.  However, please do contact a member of the Residential Conveyancing Team to discuss your matter in more detail in order that we may consider any specific requirements regarding the scope of work you require and, any potential complexities (if any) regarding the property and land involved. After all, IBB deal with bespoke property matters as well as the more standard conveyancing transactions. In addition, we can also discuss which particular fee earner you would like to act for you.

Most firms only offer an hourly rate but our research shows that our clients like a fixed fee option, which gives more certainty.  The fixed fee option will always be a higher figure because we take on the risk of the time and resulting costs running over the fixed price.  

In the examples below, the scope of conveyancing work and timing is set out in the link.

We will make certain assumptions, for example that the title is not defective; and these assumptions and exclusions are detailed in our client care letter.

All legal fees and disbursements incurred will be subject to applicable standard VAT at the prevailing rate (currently 20%).

Example legal costs – sale transactions

Sale of freehold property up to £2,000,000, registered at the Land Registry and with no mortgage to repay. Please note our hourly rate is charged at £240 plus VAT in this example:

Pricing Option 1 – Typically we would spend 6 to 8 hours for the general conveyancing work. This equates to an estimate of between £1,440 plus VAT and £1,920 plus VAT.

Pricing Option 2 – Typically the fixed price would be £2,880 plus VAT.

Sale of freehold property over £2,000,000, registered at the Land Registry and with no mortgage to repay. Please note hourly rate is charged at a higher rate being £370 plus VAT in this example:

Pricing Option 1 – Typically we would spend 6 to 8 hours for the general conveyancing work. This equates to an estimate of between £2,220 plus VAT and £2,960 plus VAT.

Pricing Option 2 – Typically the fixed price would be £4,440 plus VAT.

Example scope of work and timetable: Residential Conveyancing Sale of Freehold Property (No Mortgage to Redeem)

We charge fees for organising telegraphic transfers of £30 plus VAT for each bank transfer required to redeem mortgage or transfer proceeds of sale to your nominated account.

Mortgage specific legal costs to consider on a sale transaction

Where applicable, please allow for further fees fixed at £240 plus VAT to deal with the mortgage redemption legal tasks on any mortgage secured against the property or land.

Sale specific third party disbursements to consider

• Electronic identification checks: £11 plus VAT per person.
• Land Registry fees to obtain an up-to-date official copy of the title: £6 per title plus £3 for any additional documents required.
• Electronic completion of property forms: £6.50 plus VAT per person.
• Electronic signing of documents (if required): £2 plus VAT per person per document.

If leasehold:

• There may be a fee payable to your management company and/or freeholder company for their supply of a standard Leasehold Sales Information Pack. The costs of these are difficult to estimate but are generally in the region of £300 plus VAT.

Example legal costs – purchase transactions

Purchase of a freehold property up to £2,000,000 registered at Land Registry with no mortgage required. Please note our hourly rate is charged at £240 plus VAT in this example:

Pricing Option 1 – Typically we would spend 8 to 9 hours for the general conveyancing work. This equates to an estimate of between £1,920 plus VAT and £2,160 plus VAT

Pricing Option 2 – Typically the fixed price would be £3,360 plus VAT.

Purchase of a freehold property over £2,000,000 registered at Land Registry with no mortgage required. Please note hourly rate is charged at a higher rate being £370 plus VAT in this example:

Pricing Option 1 – Typically we would spend 8 to 9 hours for the general conveyancing work. This equates to an estimate of between £2,960 plus VAT and £3,330 plus VAT.

Pricing Option 2 – Typically the fixed price would be £5,180 plus VAT.

Example scope of work and timetable: Residential Conveyancing Purchase of Freehold Property (No Mortgage Required)

Purchase of a leasehold property up to £2,000,000, registered at the Land Registry with no mortgage required. Please note our hourly rate is charged at £240 plus VAT in this example:

Pricing Option 1 – Typically we would spend 9 to 10 hours for the general conveyancing work. This equates to an estimate of between £2,160 plus VAT and £2,400 plus VAT.

Pricing Option 2 – Typically the fixed price would be £3,600 plus VAT

Purchase of a leasehold property over £2,000,000, registered at the Land Registry with no mortgage required. Please note hourly rate is charged at a higher rate being £370 plus VAT in this example:

Pricing Option 1 – Typically we would spend 9 to 10 hours for the general conveyancing work. This equates to an estimate of between £3,330 plus VAT and £3,700 plus VAT.

Pricing Option 2 – Typically the fixed price would be £5,550 plus VAT

Example scope of work and timetable: Residential Conveyancing Purchase of Leasehold Property (No Mortgage Required)

We charge fees for organising telegraphic transfers of £30 plus VAT for each bank transfer required to transfer purchase funds to a Seller’s solicitors on completion.

Mortgage specific legal costs to consider on a purchase transaction

Where applicable, please allow for further fees fixed at £330 plus VAT to deal with the UK Finance Lender’s Handbook requirements or BSA Handbook requirements for your mortgage lender where a mortgage is required.

Purchase specific third party disbursements to consider

• Electronic identification/source of funds/wealth checks: £15 plus VAT per person.
• Electronic signing of documents (if required): £2 plus VAT per person per document.
• Mortgage administration fees (if applicable): £26 plus VAT.
• Bankruptcy searches (where a mortgage is involved): £2 per person
• Stamp Duty Land Tax return submission fee: £5 plus VAT.
• Land Registry registration application submission fee: £5 plus VAT.

You should allow approximately £550 plus VAT for property searches that will be required and which we will undertake. These searches will include a final land Registry search, an official Local Authority search, drainage/water search, environmental and plan search as well as a chancel insurance policy.

You may need to budget for Stamp Duty Land Tax. The stamp duty payable will vary. Please contact a member of the team to clarify the stamp duty applicable to your transaction, which for example, could be calculated on standard rate or higher rate. First time buyer relief may also apply. The HM Revenue & Customs stamp duty or Welsh Revenue Authority’s land transaction tax calculators on their respective websites may be helpful.

There will be fees payable to the Land Registry to register the purchase transaction. Please contact a member of the team to confirm the amount because this depends upon the amount you are paying for the property or land and as to whether or not the title is registered. The HM Land Registry fee calculator may be helpful.

If leasehold:

There may be a fee payable to your management company and/or freeholder company in respect of the below.

• Notice of Transfer fee: This fee will set out in the lease. Often the fee is between £50 plus VAT and £250 plus VAT
• Notice of Charge fee (if the property is to be mortgaged): This fee, if chargeable, will be set out in the lease. Often the fee is between £50 plus VAT and £250 plus VAT.
• Deed of Covenant fee: This fee is provided by the management company for the property and can be difficult to estimate. Often it is between £100 plus VAT and £350 plus VAT.
• Certificate of Compliance fee: To be confirmed upon receipt of the lease, as can range between £100 plus VAT and £350 plus VAT.
• New Share/Membership Certificate fee: This fee is provided by the management company for the property and can be difficult to estimate. Often it is between £100 plus VAT and £350 plus VAT.

Example legal costs – mortgage transactions

Remortgage of a freehold property valued up to £1,000,000. Please note our hourly rate is charged at £240 plus VAT in this example:

Pricing Option 1 – Typically we would spend 4 to 5 hours for the general conveyancing work. This equates to an estimate of between £960 plus VAT and £1,200 plus VAT.

Pricing Option 2 – Typically the fixed price would be £1,920 plus VAT.

Remortgage of a freehold property valued over £1,000,000. Please note our hourly rate is charged at £370 plus VAT in this example:

Pricing Option 1 – Typically we would spend 4 to 5 hours for the general conveyancing work. This equates to an estimate of between £1480 plus VAT and £1,850 plus VAT.

Pricing Option 2 – Typically the fixed price would be £2,960 plus VAT.

Remortgage of leasehold property valued up to £1,000,000. Please note our hourly rate is charged at £240 plus VAT in this example:

Pricing Option 1 – Typically we would spend 5 to 6 hours for the general conveyancing work. This equates to an estimate of between £1,200 plus VAT and £1,440 plus VAT.

Pricing Option 2 – Typically the fixed price would £2,160 plus VAT.

Remortgage of leasehold property valued over £1,000,000. Please note our hourly rate is charged at £370 plus VAT in this example:

Pricing Option 1 – Typically we would spend 5 to 6 hours for the general conveyancing work. This equates to an estimate of between £1,850 plus VAT and £2,220 plus VAT.

Pricing Option 2 – Typically the fixed price would £3,330 plus VAT.

Example scope of work and timetable: Residential Conveyancing Summary of work – remortgage

Where applicable, please allow for further fees fixed at £240 plus VAT to deal with the mortgage redemption legal tasks on any existing mortgage secured against the property or land.

We charge fees for organising telegraphic transfers of £30 plus VAT for each bank transfer to send remortgage proceeds or to redeem a mortgage.

Remortgage specific third party disbursements to consider

• Electronic identification/source of funds/wealth checks: £15 plus VAT per person.
• Electronic signing of documents (if required): £2 plus VAT per person per document.
• Land Registry fees to obtain an up-to-date official copy of the title: £6 per title plus £3 for any additional documents required.
• Bankruptcy searches: £2 per person
• Mortgage administration fees (if applicable): £26 plus VAT.
• Stamp Duty Land Tax return submission fee (if applicable): £5 plus VAT.
• Land Registry registration application submission fee: £5 plus VAT.

For remortgage transactions you should allow £550 plus VAT approximately for searches which we will undertake for your mortgage lender. These searches include a final Land Registry search plus an official local search, drainage search, environmental and plan searches as well as a chancel insurance policy.

Stamp Duty for Remortgage (where applicable) – Occasionally stamp duty is payable where you are changing the ownership details of the property by way of a Transfer of Equity. We will advise you if any stamp duty is payable.

Fees payable to the Land Registry to register a Charge will apply to a remortgage transaction, but please contact a member of the team to confirm the amount because this depends upon the amount you are borrowing. The HM Land Registry fee calculator may be helpful.

If leasehold:

There may be a fee payable to your management company and/or freeholder company in respect of the below

• There may be a fee payable to your management company and/or freeholder company for their supply of a standard Leasehold Information Pack. The costs of these are difficult to estimate but are generally in the region of £300 plus VAT.
• Notice of Charge fee (if the property is to be mortgaged): This fee, if chargeable, will be set out in the lease. Often the fee is between £50 plus VAT and £250 plus VAT.

Please note:

• Estimates will vary for matters such as unregistered land and sale of development land.
• We do make a charge for abortive transactions based on the amount of time spent.
• We do not make any additional charges e.g. for copying, postage and pride ourselves on our level of service.

Every client is individual and has specific needs. Having taken a look at these examples, if you are happy to speak to us further, please give us a call or drop us an e-mail. We will be happy to answer any questions or provide clarification. We will almost certainly need additional information to give you the most certain estimate, and we can discuss any issues of urgency or particular circumstances.