0191 500 0944
info@eliteconveyancing.co.uk
August 28, 2008
Welcome...Disbursements
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Every non-exempt property in England and Wales is required to be accompanied by a Home Information Pack, or HIP, on the day it is first marketed. The seller is ...
Disbursements explained...
Below are listed the most common disbursements and insurances that’s may be necessary during your conveyancing transaction, depending on the type of work i.e. remortgage, sale or purchase different charges may be necessary.
Land Registry Charges
Land Registry charges a fee for the changing their documentation regarding the change of or addition of a lender on a property. The fees payable to Land Registry, The Government, are dependent on the amount of money being borrowed and whether the property is being purchased or remortgaged and are as follows:
Land Registry Fees Remortgage:
Money Borrowed | Remortgage Amount Fees |
Up to £100,000 | £40.00 |
£100,001 to £200,000 | £50.00 |
£200,001 to £500,000 | £70.00 |
£500,001 to £1,000,000 | £100.00 |
£1,000,001 and over | £200.00 |
Official copy documents | £12.00 |
Land Registry Fees Purchase:
Money Borrowed | Purchase Amount Fees | Voluntary First Registration |
Up to £50,000 | £40.00 | £30.00 |
£50,001 to £80,000 | £60.00 | £45.00 |
£80,001 to £100,000 | £100.00 | £75.00 |
£100,001 to £200,000 | £150.00 | £110.00 |
£200,001 to £500,000 | £220.00 | £165.00 |
£500,001 to £1,000,000 | £420.00 | £315.00 |
£1,000,001 and over | £700.00 | £525.00 |
Official copy documents | £12.00 | £12.00 |
The Voluntary first registration fee at Land Registry is lower than that of the normal fees charges, but if the property is unregistered then we will charge a supplement for the additional work involved other than the itemised conveyancing quote given. In most cases, most of the land in England and Wales is registered with Land Registry.
Other charges that may be necessary during your conveyancing instruction that are outside our control are charges imposed by the freeholders to amend their records relating to the charge. This is necessary as the lender requires this as part of there requirements irrelevant whether mentioned in the lease. The charge depends on the age of the lease but an approximation is about £50 usually.
Insurance
Insurance is "A promise of compensation for specific potential future losses in exchange for a periodic payment.” Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event"
In some cases of conveyancing we are able to use insurance policies to cover any eventualities that certain searches may find. In most cases, where acceptable, this saves the client time and money as this can be done very quickly. Below are listed some insurance policies that may be used and there relevant charges:
No Search Insurance
Purchase
With the law changing on 14th of December 2007, every home in England and Wales on sale must have a Home Information Pack, regardless of the size of the property, otherwise known as a HIP. This pack gives valuable information such as evidence of title, local searches and sale statement. HIP's make the process of a possible purchase easier and less stressful.
In some cases where the property on sale has had a HIP made over six months ago, or in cases where the lender requires new "Searches" to be done, the information provided in the Home Information Packs is deemed useless.
In this instance, if there is a choice between performing a full set of searches on the property or taking out an insurance policy to cover any problems that the searches would have found later on, we would advise the later. As full searches are costly and the insurance covers any eventualities the searches would have found, at a fraction of the cost, we would normally confirm that this is acceptable with the lender and confirm this with you. The fee for the insurance is dependent on the property value as we have arranged a block "No Search Indemnity" with limited indemnity of £1,000,000 :
Property value (£) |
Premium for Purchaser/Lender cover (£) |
Up to £150,000 |
£40.00 |
£150,001 to £250,000 | £60.00 |
£250,001 to £500,000 | £75.00 |
£500,001 to £750,000 | £100.00 |
£750,001 to £1,000,000 | £130.00 |
£1,000,001 or above | Please call office for price |
Remortgage
If you are remortgaging your property most lenders will allow you to take a insurance policy for searches (as specified above) rather than conducting full searches. Again using searches is far cheaper and will expedite the duration of the process. Looking into the use of search insurance for remortgaging, it makes more sense as you already own the property and any eventualities found will still be your responsibility whatever the outcome. Our block “Local Search” insurance also includes “No chancel repair Liability”, which will be explained further on. The fees of our "No search insurance" for remortgages are as follows:
Property value (£) |
Premium for Search and Title (including Chancel repair liability) (£) |
Up to £250,000 |
£12.50 |
£250,001 to £500,000 | £20.00 |
£500,001 to £750,000 | £30.00 |
£750,001 to £1,000,000 | £40.00 |
£1,000,001 or above | Please call office for price |
Chancel Repair Liability Insurance
It is possible that due to an anachronism from pre 1925 which remains in English law a property may be fixed with an obligation to pay for repair of a church. There are no registers which can be searched to ascertain if a property is affected. We have negotiated a block policy of insurance for the benefit of our purchaser clients to insure against the financial consequences. With the No search policies scheme we have in place for remortgages, Chancel Repair Liability is included in the premiums and are not required additionally.
For purchases, this insurance has to be taken independently and is at the discretion of the buyer, but we would advise it is taken for a cost of £5.25 per conveyancing purchase (including Insurance Premium Tax at 5%) to protect against possible eventualities in the future. For example, in a 2003 case costs estimated to amount to be around £200,000 were imposed for repairs on owners of property near an old church!
Telegraphic transfers
On completion of your conveyancing instruction, any balance of your monies can be sent on request by mail in the post via cheque. We, by default, send the balance of monies to yourself via Telegraphic Transfer so that you have cleared funds in your account within 24 hours(usually by close of business on the same day, if request done before 2:30pm). The charges for this service is £35.00 plus VAT
Search fees
Other searches that may be required dependent of your instruction type are listed below with the relevant costs:
Search type |
Description |
Cost |
Transactions used with |
|
Land Registry | Necessary to check nothing has been registered against the title since it was last updated | £6.00 | Remortgage |
Bankruptcy Search | Necessary to check whether the clients remortgaging have never been declared bankrupt | £2.00 per name | Remortgage |
Register View | Checks state of register at Land Registry | £6.00 | Remortgage |
Electronic Identity Check | Confirms identity of client(s) | £4.00 plus VAT per name | Remortgage |
Office Copy Document: | Official copies of the entries on the Title of the property | £12.00 | Sale |