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Introduction to disbursements and other costs

At Pixie Moves, we understand that the process of buying or selling your home can be overwhelming. That's why our team of experienced conveyancers is dedicated to guiding you every step of the way. Our focus is on making sure you understand each step and what is involved in the process. Whether you are a first-time buyer or a seasoned mover, we are here to help.

What are they?

Disbursements are costs related to your matter that are payable to third parties, such as Land Registry fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.

What you need to know

You will be provided with a full list of disbursements in our formal quotation. If you need to incur any further disbursements during your case, you will be notified in advance of the reason and the amount.

Like what?

Typical disbursements and other costs that may apply in you matter will include: - 

 

Stamp duty

HM Land Registry (Stamp Duty*) applies to most property purchase transactions. We will advise you of the stamp duty applicable to your matter and you can visit the HMRC website for more information (see below)

 

https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro 

Getting to know you

We have to confirm your identity as part of our compliance, so, just like your bank would, we have to undertake Client Due Diligence (CDD) which is made of up KYC (Know Your Client) and AML (Anti Money Laundering) details of which are contained within our terms of engagement which will be sent to you when instructing us, and while we make this as pain-free as possible, there is a small cost:

  • KYC ID Check – £10.00 plus VAT (£12.00 Inc. VAT) per person 

  • Source of funds check - £12.00 plus VAT (£14.40 Inc. VAT) per transaction

Local searches

Search fees vary from case to case depending on the local authority. We will advise you which searches you need for your transaction and the cost of each search. Our average fee for a standard property search pack is from £260.00 plus VAT (£312.00 Inc. VAT). Typical local searches include: 

 

 

  • Local land charges search; 

  • Enquiries of the local authority; 

  • Environment search; 

  • Planning Search; 

  • Chancel repair liability indemnity; and 

  • Water and Drainage search 

 

 

Other official local searches may be required by your lender and your conveyancer will use their local knowledge to confirm which local searches you will need. A standard local authority search will reveal whether any legal restrictions or obligations affect the property. These include tree preservation orders, smoke control orders, flood searches as well as the property’s planning and building enforcement history. We will advise you which searches you need for your transaction and the cost of each search. 

Leasehold purchases

There may be further disbursements for a Leasehold purchase or the purchase of a freehold property where there is a Management Company which if chargeable is set out in the Lease or Transfer and usually paid to the Landlord or Management Company. 

These can include: 

 

  • Notice of Transfer fee - This fee, if chargeable, is set out in the lease and is often between £0 – £250 + VAT (£0 - £300 Inc. VAT)

  • Notice of Charge fee - If the property is to be mortgaged.  This fee is set out in the lease and is often between £0 – £250+ VAT (£0 - £300 Inc. VAT)

  • Deed of Covenant fee - This fee is provided by the management company for the property and can be difficult to estimate but is often between £0 and £250. + VAT (£0 - £300 Inc. VAT)

  • Certificate of Compliance fee - o be confirmed upon receipt of the lease as can range between £0 and £250. + VAT (£0 - £300 Inc. VAT)

 

 

These fees are set by the management company/freeholder and can vary from property to property. They can, on occasion, be significantly more than the ranges given above and VAT may be charged. We can give you an accurate figure once we have sight of your specific documents.

 

You should also be aware that ground rent and service charge are likely to apply throughout your ownership of the property.

Additional charges on a residential purchase

As an example, below are some additional charges that could be applicable to your transaction:

 

  • For acting for your mortgage lender – £150 plus VAT (£180 incl. VAT). This is on the assumption that we are on the panel of solicitors appointed by your lender.

  • Help to Buy Equity Mortgage – £195.00 plus VAT (£234.00 incl. VAT)

  • Help to Buy ISA (per bonus) – £95.00 plus VAT (£114.00 incl. VAT)

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