What Are Disbursements?
When using a solicitor for your property transaction you may notice ‘no completion, no fee, minus disbursements’ being advertised. You are probably wondering what disbursements are? Residential conveyancing experts TRUE Solicitors LLP explain all.
Conveyancing Disbursements Explained
Conveyancing disbursements are the payments or taxes that need to be made to a third party by your solicitor as part of the home buying process.
Disbursements are not part of your solicitors handling fee, they are separate fees that need to be paid upfront at the start of the conveyancing process. They include:
Stamp Duty Land Tax – costs dependent on property value
Stamp Duty land Tax (SDLT) is paid to the government when you purchase land or property valued at over a certain amount in England. Stamp duty is calculated based on the value of your home and there are certain discounts for first time buyers. Read more about what stamp duty is and why you need to pay it.
Local Authority Searches – £100-£200 + VAT
Local authority searches are in place to check for information such as planning applications, road schemes, land contamination, development restrictions and enforcement actions. Read our guide on what are local searches?
Water and Drainage Search – £30 – £40 + VAT
A drainage search is conducted by the local water board to check that the property is connected to fresh and foul water sewers. It also reveals information about:
- The connections to the Mains water
- The connections to the Mains Sewer (if applicable)
- The location of water supplies and sewers
- How the property is charged for water and wastewater services, i.e. if it is measured by a meter, unmeasured or charged on a rateable value.
The cost is dependent on the individual water company but is generally £30-£40.
Environmental search – £30 – £35 + VAT
Environmental searches identify potential issues with flooding, subsidence, landslides and land contamination.
HM Land Registry Fees – From £20 for property valued up to £80K up to £135 for property purchased between £200,001- £500K
Each land and property transaction in England must be registered with the HM Land Registry. There is a cost in place by the government for registering a change in ownership of the property. The cost is dependent upon the value of the property or the mortgage attached to it.
Chancel Indemnity Insurance – £15-£20
A search for chancel repair liability is done to check that the home that you’re purchasing is not subject to liability to pay for the maintenance and repairs of the local church. This is an ancient law that dates back to the 16th century when Henry VIII established the Church of England.
If the property is found to be liable to pay for repairs to the local parish church, the repair bills can run into hundreds of thousands of pounds.
Bankruptcy Search – £2 per person
Your solicitor will need to carry out a bankruptcy search on all named persons on the mortgage. This is so that your mortgage lender knows that nobody named on the contract has been declared bankrupt.
Land Registry Search – £3
Your solicitor will request copies of the title register and title plan for the property that you are purchasing from the Land Registry. This is to check that the seller legally owns the property that you are buying from them.
Bank transfer fee – £18 + VAT
This is the cost charged by your bank to cover the cost of sending over the money used to purchase the property to the seller’s solicitor.
True Solicitors LLP offer fixed fee, stress free residential conveyancing services. Whether you’re buying, selling, remortgaging or transferring equity we offer a transparent and straightforward service, designed to make your property transaction proceed as quickly and smoothly as possible.
Contact out friendly conveyancing team on 0344 854 7000 for a competitive, free, no obligation quote. Or use our handy conveyancing fee calculator for an instant quote.