Transparency in Conveyancing Quotes

Both conveyancing solicitors and licensed conveyancers are expected to try and provide you an accurate estimate of the total conveyancing costs at the outset.

Conveyancing Solicitors

The Solicitors' Code of Conduct (the SRA Code) sets out specific rules as to the way in which solicitors should publicise charges.

In addition to this, the practice note 'Publicising Solicitors Charges' and The Conveyancing Handbook provide guidance for solicitors in order to assist them in adhering to the code of conduct.

Clients should not be led to believe that costs are likely to be less than they will be. When giving an estimate or quotation for charges, solicitors are expected to make it clear to their clients whether or not VAT and disbursements are included in the quotation.

Quotes should be as comprehensive as possible and should clearly cite any disbursements that are routinely included in quotes, such as telegraphic transfer fees, land registry charges and official copy entries obtained from the Land Registry.

Licensed Conveyancers

For Licensed Conveyancers, the CLC’s Estimates and Terms of Engagement Code requires that your conveyancer states the fees and disbursements (plus any VAT) that they propose to charge you, and how fees for abortive work (if your property sale/purchase falls through) will be calculated. The purpose is to avoid any misunderstanding about the level of costs which will need to be paid and how they are made up.

Stamp Duty on Residential Properties

You must pay Stamp Duty Land Tax (SDLT) on any residential property where the purchase price is over £125,000, unless you are a first time buyer.

You can use our Stamp Duty Calculator to find out how much tax you will have to pay.

Current Stamp Duty Rates

Example

If you buy a property for £280,000, the SDLT you owe is calculated as follows:

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £30,000 = £1,500
Total SDLT = £4,000

From April 1st 2016, if you are purchasing a property that you will be renting out, often known as a 'Buy to Let' property, Stamp Duty will be calculated at 3% over the standard rates. This rate will also apply to the purchase of 'second homes', and any purchase where an individual owns two or more properties at the end of the transaction and has not replaced their main residence. Read our additional residential property Stamp Duty guide for more information.

Stamp Duty is also payable when you purchase the freehold (buying the existing ‘assigned’ lease) for a property from your landlord, and is calculated on the same scale as for a property purchase. The purchase price of the lease is known as the ‘lease premium'.

Similarly, if you purchase a new residential leasehold property you will also pay the lease premium, but in addition if the total rent over the life of the lease (known as the ‘net present value’) is more than £125,000, you will also pay additional Stamp Duty of 1% on the amount over £125,000.

Special Rates

There are different Stamp Duty rates, rules and calculations for:

• commercial properties
• corporate bodies
• people buying 6 or more residential properties in one transaction
• shared ownership properties
• multiple purchases or transfers between the same buyer and seller (also know as linked purchases)

Further details can be found in the Stamp Duty Land Tax section of the gov.uk website.

When can I collect the keys?

Once payment for your property purchase has been credited into the account of the sellers solicitor you can usually collect the keys straight away.

Final completion of most conveyancing transactions takes place by early afternoon, so you can usually move into your new property on the same day as completing.

Keys are usually left with the vendors estate agent and the buyer collects them  If there are no estate agents then the seller will arrange to meet with the buyer and hand the keys over directly.