What are the costs?

Fees for some services, such as searches carried out by local authorities, are fixed by the provider and your solicitor should not make any additional charge unless specifically stated. Others, such as HM Land Registry fee and Stamp Duty, are fixed by Government and based on the value of the property. Your solicitor should be able to give an estimate of the overall costs.

The most common disbursements include:

Bankruptcy Search

If you need a mortgage, the lender may require a search to check you haven’t been declared bankrupt. This search is carried out by the buyer’s solicitor.

Drainage and water search

This search is made by the company providing water and drainage services. It establishes if a property is connected to the main public water and sewage system – important in rural areas. Other information includes how the property is charged for water, for example if metered.

Land Registry Search

The buyer’s solicitor will arrange a pre-completion search to check the seller owns the property being sold. The Land Registry is a government agency responsible for maintaining the register of property titles.

Land Registry Transfer fee

All land and property transactions must now be registered with HM Land Registry. The government department charges a compulsory fee for registering the change of ownership along with details of any new mortgage. The fee is applied on sliding scale depending on the price of the property.

Local authority Search

This is one of the main conveyancing searches for buyers. The local authority will provide information on the area around a property, such as if there is a major new road or housing estate planned at the bottom of the garden. Other information includes:

• Whether the property is listed or in a conservation area
• If there are any footpaths crossing the property
• If roads adjoining the property are publicly maintained or not
• A list of planning decisions affecting the property, such as enforcement action, planning applications, restrictions on permitted development
• Land contamination

Stamp Duty Land Tax

This is a tax paid to Government when buying property in England and Northern Ireland, costing more than £125,000 (or more than £40,000 for second homes). There are different tax bands depending on the value of the property and if it’s buy-to-let. Currently, there are some exemptions for first-time buyers. The Land Registry will not complete transfer of the property title until Stamp Duty has been paid.

Other disbursements may also be needed, depending on the location or if requested by the buyer or mortgage lender.

Chancel repair liability search

If a property is in a parish which includes a medieval church which pre-dates 1536, then homeowners may have a legal duty to contribute to the cost of chancel repairs. A chancel is the part of the church which contains the altar, sanctuary and choir. Since 2013, this liability must be registered with the Land Registry, so a separate search may only be necessary if the property is unregistered.

Coal search

This is recommended for properties in areas of coal mining activity. It will identify if there are any old tunnels or mine shafts (which can stretch for long distances) under the property or subsidence claims as well as environmental risks, such as contamination, from past, present or future mining activity. Obviously, this is important to check as it could affect the value of the property as well as chances of getting a mortgage and home insurance.

Environmental search

These are carried out by specialist companies and usually recommended for homes in industrial areas or where manufacturing previously existed. Toxic chemicals may still be in the ground, such as lead, arsenic, mercury and other heavy metals, which could pose a risk to human health. These searches will report if the home is in a radon-affected area.  Radon is an odourless, radioactive gas that occurs naturally in rocks and soils 

Flood risk report

The risk of flooding has become a growing problem in some areas, such as Cumbria. A property doesn’t need to be close to the sea or a river to be at risk of flooding. Surface water flooding is on the increase and occurs when drainage systems are overloaded with rainwater, resulting in water flowing over ground rather than underground.  A flood risk report will show if a property is at high risk and the source. Apart from damage to the property, areas of high risk can make it difficult to get a mortgage or insurance.

Landlord’s registration fee

This fee may be payable when buying a flat or other leasehold property to the freeholder (or their agent) for registering details of the change of ownership and the buyer’s mortgage, if any.

Tin and other mining

This highlights any tin or copper mining activity and subsidence hazards that could case structural damage to a property. This search is recommended for properties in Devon and Cornwall. Homes in some parts of Cheshire and Greater Manchester may need a brine search to check subsidence risk due to brine extraction.

If you have are thinking of buying or selling your home, you may find some of these services useful: