Conveyancing

Conveyancing is the legal process of transferring property ownership from one party to another in the UK, ensuring the transaction is legally sound, the property title is clear, and all contractual and regulatory obligations are met. It is a critical component of buying, selling, or remortgaging residential or commercial properties. Conveyancing is typically handled by a licensed conveyancer or solicitor and involves coordination with other professionals, such as property surveyors and, in some cases, quantity surveyors (QS). This explanation provides a detailed overview of conveyancing, integrates the roles of property surveying and quantity surveying, and uses British pounds (£) for examples, adhering to UK English and grammar.

Conveyancing encompasses the legal, administrative, and financial tasks required to transfer property ownership or amend property financing (e.g., remortgaging). It ensures the buyer receives a clear title, free from legal issues, and the seller is paid the agreed amount. The process also verifies that the property complies with regulations and that any risks (e.g., planning disputes) are identified.

Conveyancing is required for:

• Buying or selling freehold or leasehold properties.
• Remortgaging an existing property.
• Transferring equity (e.g., between spouses).

The process involves detailed legal work, searches, and coordination with lenders, estate agents, and other parties, typically taking 8–16 weeks, depending on complexity.

• Instruction and Initial Steps:
  • The buyer or seller appoints a licensed conveyancer or solicitor, often recommended by an estate agent or mortgage broker.
  • The conveyancer reviews the client’s instructions, verifies identity (to comply with anti-money laundering regulations), and requests initial       documents (e.g., property title deeds).
  • Costs: Conveyancers may charge a fixed fee (£800–£2,000) or hourly rate, plus disbursements (e.g., search fees).
• Pre-Contract Stage:
  • For Buyers:
    • The conveyancer reviews the draft contract from the seller’s solicitor, which includes the property’s details, price, and conditions.
    • They conduct searches to identify risks:
      • Local Authority Search (£100–£300): Checks planning permissions, building regulations, or road schemes.
      • Environmental Search (£50–£150): Assesses risks like flooding or contamination.
      • Water and Drainage Search (£50–£100): Confirms water supply and sewerage connections.
      • Other Searches: Chancel repair liability, mining, or title register checks (£20–£100 each).
    • The conveyancer examines the property title (via Land Registry, ~£3–£7 per title) for issues like restrictive covenants, easements, or disputes.
    • They raise enquiries with the seller’s conveyancer (e.g., about boundary disputes or leasehold terms).
  • For Sellers:
    • The conveyancer prepares the contract pack, including title deeds, property information forms (e.g., TA6 form detailing fixtures/fittings), and        leasehold information (if applicable).
    • They respond to the buyer’s enquiries.
  • Example: For a £350,000 freehold house, searches cost £300–£600, revealing a flood risk that prompts the buyer to negotiate a £5,000 price reduction.
• Contract Exchange:
  • Once searches and enquiries are complete, both parties sign the contract.
  • The buyer pays a deposit (typically 10%, e.g., £35,000 for a £350,000 property), held by the conveyancer or solicitor.
  • The transaction becomes legally binding, with a completion date set (usually 1–4 weeks later).
  • If either party withdraws, penalties apply (e.g., the buyer loses the deposit, or the seller refunds it plus costs).
• Completion:
  • The buyer’s conveyancer transfers the remaining funds (e.g., £315,000 for a £350,000 property after a £35,000 deposit) to the seller’s conveyancer.
  • The seller vacates, and the buyer receives the keys.
  • The conveyancer registers the new ownership with the Land Registry (fees: £20–£1,105, based on property value, e.g., ~£270 for a £350,000       property).
• Post-Completion:
  • The conveyancer submits Stamp Duty Land Tax (SDLT) to HMRC within 14 days. For a £350,000 property (non-first-time buyer), SDLT is £7,500 (£0 on the first £250,000, 5% on £250,001–£350,000).
  • The Land Registry updates the title register, confirming the buyer as the new owner.
  • The conveyancer provides the buyer with title documents and the seller with proof of debt clearance (if a mortgage was involved).

Total Conveyancing Costs:

• Fees: £800–£2,000 (conveyancer/solicitor).
• Disbursements: £200–£800 (searches, Land Registry, bank transfer fees).
• SDLT: Varies (e.g., £0 for first-time buyers up to £425,000, £7,500 for a £350,000 property).
• Example: Conveyancing for a £400,000 purchase might cost £1,500 (fees) + £500 (searches) + £270 (Land Registry) + £10,000 (SDLT) = ~£12,270.

Property surveying involves a professional inspection of a property’s condition, conducted by a qualified surveyor (typically a member of the Royal Institution of Chartered Surveyors – RICS). While not legally required, a survey is strongly recommended for buyers to identify structural defects, repair needs, or risks that could affect the property’s value or safety. Surveys are separate from conveyancing but often coordinated by the conveyancer to inform the purchase decision.

Types of Property Surveys:

• Condition Report (£300–£600):
  • Basic inspection for newer properties in good condition.
  • Highlights urgent defects and basic maintenance issues.
  • Suitable for modern homes (e.g., a 10-year-old flat).
  • Example: A £250,000 flat survey costing £400 identifies minor damp, estimated at £1,000 to fix.
• HomeBuyer Report (£400–£900):
  • Detailed inspection for standard properties (e.g., post-1945 houses).
  • Includes defects, repair advice, and a valuation (optional).
  • Flags issues like subsidence or roof damage.
  • Example: A £350,000 house survey (£600) reveals faulty wiring costing £3,000 to repair, prompting negotiation.
• Building      Survey (£600–£2,000+):
  • Comprehensive analysis for older, larger, or non-standard properties (e.g., Victorian houses or listed buildings).
  • Covers structural integrity, hidden defects, and detailed repair costs.
  • Example: A £500,000 period property survey (£1,000) identifies a cracked foundation (£10,000 repair), leading to a price reduction.

Role in Conveyancing:

• Surveys are typically commissioned after the offer is accepted but before exchange of contracts.
• The conveyancer uses survey findings to raise additional enquiries (e.g., about repair responsibilities) or advise the buyer to renegotiate or withdraw.
• For leasehold properties, surveys assess shared areas (e.g., communal roofs), informing service charge disputes.

Example:

• A buyer purchasing a £450,000 Victorian terrace commissions a Building Survey (£900). The survey reveals roof damage (£8,000 to fix) and asbestos      (£2,000 to remove). The conveyancer negotiates a £10,000 price reduction, adjusting the contract to £440,000.

Costs:

• Vary by property value, type, and location (e.g., £400 for a £200,000 flat; £1,500 for a £1m mansion).
• Surveys save money by identifying issues early, avoiding unexpected repair costs post-purchase.

If you have a need for a Conveyancer, please contact us on 0800 061 46 49 or email ask@phillipscapital.info to discuss your options.