One of the biggest fees associated with buying a house is the fee for employing the services of a solicitor/conveyancer. Sadly, this isn’t a fee you can minimise to 0 but by getting in contact with a couple you should end up with one that is a good fit for your bank account.
If you’re unsure what a conveyancer/solicitor does, a quote from MoneySavingExpert:
You’ll need to pay your solicitor to cover the cost of all the legal work associated with buying a home. This includes conveyancing (dealing with the transfer of ownership), checking paperwork is in order and checking whether environmental factors, planning permission issues or other hidden nasties could cause you problems.
The biggest bit of advice I can pass on is to get an itemised quote from at least 3 solicitors/conveyancers. This will give you an idea of what you’re dealing with. Don’t feel silly about ringing up and having to explain that you’re a first time buyer who doesn’t really know what he/she is doing (feeling way out of my depth is exactly how I felt when phoning for quotations). They’ve heard this a million times and the majority are more than happy to step through the whole process with you. Once you’ve got a number of quotes, you’re then going to know if one was potentially trying it on (especially if you tell them you’re a first time buyer, which you should). If they all come in roughly the same price, you’ll probably pick another factor like location of their office.
As is customary on HowToSaveCash, here’s an example itemised quote for a £200,000 purchase.
The largest item on the quote is the ‘Lands & Buildings Transaction Tax’. South of the border, it’s known as stamp duty. This is a fee which the government collects when a house is purchased.
I am not going to pretend to know what each item is, however, once you’ve got your 3 or 4 quotes, you will see similarities between them which you can go off and Google. For any items Google fails to return a meaningful explanation, you should be able to ask the solicitor for an explanation.
There is a potential to cut the total solicitor fee down a little and this is by dealing with the Stamp Duty/Land & Buildings Transaction Tax on your own. It’s not compulsory that the solicitor handles this, however there is a relatively short time frame in which the tax has to be paid once the purchase has gone through.
For our Scottish residents, more information can be found here How to pay LBTT
So, hopefully that wasn’t too painful. In theory, if you’re a first time buyer and you hunt around for a mortgage which doesn’t have any fees, plus you manage to cut your removal costs down to 0 by doing a little heavy lifting on your own and by blagging a van from work/friend/family member/neighbour, then the only bill that will need paying is the solicitor’s.
As always, if something in this post has peaked your interest then please do more of your own research. If you happen to have gone down the DIY route for paying the Stamp Duty/LBTT on a house purchase then I’d be interested in hearing from you about your experience.