Are You Overestimating Conveyancing Fees for a Home Purchase?

Real estate agent with house model and keysMany first-time buyers in the UK think that solicitors’ conveyancing fees on property bought for £250,000 would cost £1,500, but that is more than double the average fee, according to a survey of 500 people.

It would only cost you around £550 in conveyancing costs for buying a home for the first time. Several buyers are also confused on the process of stamp duty, which is their responsibility. Some believe that sellers should pay for it, while others think that solicitors include them as an added charge.

Moving costs

Conveyancing costs will be more expensive for those who plan to sell a house and move into a different place. Sellers need to pay a £590 fee for divesting a property for an average of more than £225,000 while buying a house would require a £845 fee for the purchase.

First-time buyers could expect to pay lower moving costs, simply because they do not need to pay fees for selling a house unless they inherited one. In general, they no longer need to pay stamp duty if they acquired a home below or at £300,000. Taxes will apply for the first £300,000 on a home purchase worth up to £500,000. The standard rates will apply for homes above £500,000.

More interested buyers

Despite the seemingly expensive fees, more Britons are enticed to buy their first home due to the government’s removal of stamp duty and programmes such as Help To Buy. However, the number of interested buyers may further increase if they are fully aware of different terms and processes.

For instance, many believe that surveyors or real estate agents conduct property searches. In reality, conveyancers are responsible for this.

It can be confusing to buy a home for the first time, but the process becomes easier when you can compare quotes from different conveyancers and property lawyers. This lets you avoid spending more than necessary.