What are conveyancing disbursements?

Disbursements are part of your conveyancing costs. They are fees that your conveyancing solicitor has to pay to third parties, rather than forming part of your solicitor’s own costs. They are itemised separately when you request a conveyancing quote and again on your completion statement. It’s important to remember that these are costs that cannot be avoided.

The following are some of the most common disbursements you will have to pay, depending upon whether you are selling, buying, remortgaging, or transferring equity:

Disbursements payable on a sale

Official copy entries: These are certified copies of the land or charge certificate obtained from the Land Registry, confirming your ownership of the property. They include copies of the register and plan, together with any other documents referred to in the register. If downloaded online, the register and plan each cost £3 and any additional documents £5 each.

If the property is leasehold, you will also require:

• Copy lease: The cost to download this is £3.
• Landlord’s information pack: All potential buyers will need certain information from your landlord (freeholder), including details about the freehold management, ground rent and service charges which apply to your property. They or their managing agent will charge a fee for providing this information. Unfortunately, there is no fixed fee for this. Typically, the landlord will charge anywhere from £50 to £300, plus VAT.

Disbursements payable on a purchase

Searches: Three main types of searches are carried out:

• Local Authority Search: Highlights issues concerning planning, building control, highways, and pollution.
• Water and Drainage Search: Clarifies who owns and maintains the sewers, drains, and pipes, and their location. It will confirm whether the property is connected to the public water supply and sewer and whether the water supply is rateable or on a meter.
• Environmental Search: Highlights issues concerning flooding, subsistence, landslide, contaminated land, and radon gas.

Generally, these three searches are obtained as a ‘bundle’ at the cost of £270, including VAT.

Other searches will depend upon the location of the property. Your solicitor will know which searches are prudent in a particular locality. Common examples are to check for possible threats from:

• Coal, stone, tin, or brine mining (around £55 plus VAT);
• Common land (around £80 plus VAT);
• Chancel repair liability (around £25 plus VAT).

Land Registration Fee: Payable to the Land Registry for registering a change of ownership. It is charged on a scale based on the purchase price and ranges from £50 to £900.

OS1 priority search: Carried out before completion and serves two purposes. First, it will reveal any changes to the register since the Office Copy Entries were obtained. Second, for thirty days – the ‘priority period’ – it gives you ‘priority’, preventing anything from being registered against the title except by you. If you cannot complete within the priority period, you must obtain another priority search. The cost is £3.

Bankruptcy search: Carried out on behalf of your mortgage lender to ascertain whether you are bankrupt or on the verge of bankruptcy. The cost is £2 per purchaser.

Stamp Duty Land Tax (SDLT): A tax levied on property purchases. Refer to the government’s SDLT calculator.

In addition, for leasehold properties:

Notice of assignment: Following completion, a notice of change of ownership must be served on the landlord, who will charge a fee for receipting the notice. Fees vary between landlords, but will typically be between £50 and £150, plus VAT.

There may also be a requirement to:

• Transfer a share certificate;
• Enter into a deed of covenant; or
• Obtain a certificate of compliance.

Again, fees vary between landlords.

Disbursements payable on a remortgage

Official copy entries: see above.

Search Indemnity Insurance: Where you are remortgaging rather than buying, lenders will generally accept an insurance policy in lieu of searches. The cost of the policy will depend on the amount borrowed.

Land Registration Fee: Payable to the Land Registry to register the new mortgage and charged on a scale based on the amount borrowed.

OS1 priority search and a bankruptcy search: see above.

If the property is leasehold, you will also require:

Notice of charge: Following completion, a notice of the new mortgage must be served on the landlord, who will charge a fee for receipting the notice. Fees vary between landlords but will typically be between £50 and £150, plus VAT.

Disbursements payable on a transfer of equity

Official copy entries: see above.

Land Registration Fee: Payable to the Land Registry for registering the transfer. The Land Registry charge on a scale.

Stamp Duty Land Tax (SDLT): The calculation of SDLT for a transfer of equity can be complex. Your conveyancing solicitor will advise how much you will pay once the consideration has been calculated.

If the property is leasehold, you will also require:

Notice of assignment: see above.

There may also be a requirement to:

• Transfer a share certificate;
• Enter into a deed of covenant; or
• Obtain a certificate of compliance.

Fees vary between landlords.