Solicitors fees for selling a house and other costs

Selling a house can be exciting and daunting in equal parts. However, knowing what to expect is key for as stress-free an experience as possible. 

This article takes you through most of the costs of selling a house or other residential property, so you can be prepared in advance.  

For more information on the entire conveyancing process when selling a house, click below to download our free guide for sellers: 

Solicitors fees for selling a house 

When selling a house, you’ll need to instruct a specialist conveyancer or solicitor to deal with the legal aspects. Conveyancing fees for selling vary, usually depending on the price of the property being sold. Average solicitor fees also tend to be cheaper than conveyancing fees for buying a house, as there are typically fewer disbursements like as search fees. However, bear in mind that if you are buying as well as selling, you will have to pay these fees too.

The typical solicitors’ fees for selling a property can typically be split into two categories: 

Legal fees – the fees charged by your solicitor or conveyancer for carrying out the work. 

Disbursements – what you pay for additional costs incurred through the work your conveyancer does. When selling a house, these usually include the transfer of ownership with the land registry (usually a few hundred pounds) and the title deed, which is a small cost.  

This list isn’t exhaustive. You may also have to pay bank transfer fees and a small fee to check your ID.

Certain circumstances can also lead to higher conveyancing fees. For example, if the property has a mortgage, there’s usually an additional charge. Selling leasehold properties also involves more work, so conveyancing fees are usually higher than they would be for a freehold property. If the sale falls through, you may also have to pay more fees for a new transaction.

At Setfords, we offer fixed fee conveyancing quotes, so you can know how much you’ll have to pay for legal fees up front. Click the button below to get your free fixed fees quote. 

Buying and selling a property at the same time 

If you’re buying a new property at the same time as selling one, there will be some extra fees to pay, including additional conveyancing fees and Stamp Duty. You can find out more about costs and fees for selling a home in our dedicated article here.  

Estate agent’s fees  

If you’re marketing your property using an estate agent, you will need to pay them a fee to use their services. These fees are usually charged at a percentage of the sale price of the property. You’ll pay them once the sale completes. It’s common for estate agents to charge between 1-3% of the property’s sale price plus VAT, but this can vary. 

How much should estate agent’s fees be? 

Estate agent fees will vary depending on a few factors, such as: 

• The property’s price. The higher the price, the more you can expect to pay in estate agent’s fees.
• The location of the property, which can affect the sale price and therefore the fees. 
• Whether you use a local estate agent, chain, or online estate agent. You might want to shop around to get the best price. 
• You may be able to negotiate and agree to a lower estate agent’s fee.

Remember that the cheapest estate agent may not necessarily the best, especially if you are selling a unique or high-value property. It’s a good idea to speak to a few estate agents before you make a decision, to get a feel for their costs and the kind of service they offer. 

Mortgage Fees 

If the home you’re selling has a mortgage on it, you are usually able to ‘port’ the mortgage to a new property (if you are buying one). The mortgage is still technically repaid upon sale of the house, but it means that the interest rate remains the same on the new mortgage. Early repayment charges are also usually not applicable. 

However, this may not be the best option for everyone. For example, you may be able to get a lower interest rate with a different provider. In these cases, you may have to pay an early repayment charge to pay off your existing mortgage before your fixed term is up so you can get a new one on the new property. A mortgage exit fee may also apply. This is an admin charge paid to close your mortgage account.  

No matter your situation, your mortgage provider may be able to provide a solution. So, it’s a good idea to talk to them in advance to see how they can help you.  

Energy Performance Certificate (EPC) 

Did you know that you’ll need to get an Energy Performance Certificate (EPC) for your property before you market it, if you don’t have one already? This will give potential buyers more information about how energy efficient the property is and how much energy costs are likely to be. There’s no set cost for an EPC. It can vary based on the size and number of rooms the property has. Your estate agent will usually be able to recommend an assessor, or you can select one yourself. 

An EPC is valid for ten years, so your property might already have one. You can find out on the government’s ‘Find an energy certificate’ page here. 

Home improvements 

While these aren’t always necessary to sell your property, you might want to undertake some home improvements to help make it more attractive to potential buyers. Of course, these come at a cost for materials, plus labour if you don’t feel like DIY! 

Furthermore, your buyers may decide to undertake a survey. If this uncovers any issues, they will probably want to negotiate the sale price. Or, they might ask you to carry out the work to fix it before the property is sold.  

Capital Gains Tax 

If you’re selling your main residence, it’s unlikely that you’ll need to pay any Capital Gains Tax. However, you may be liable to pay some on profit made under some circumstances, including: 

• If you let your property out to a tenant at any point during your ownership 
• You’re selling a second home, such as a holiday home or buy-to-let property 
• You are selling a property that you have inherited from someone 

Conclusion 

The cost of selling a house can quickly add up, so it’s important to be aware of all the different costs and fees so that you don’t encounter any nasty surprises! Knowing what to expect throughout the entire conveyancing process can help reduce your stress and give you a clearer picture of the road ahead. For our free and comprehensive guide to the conveyancing process for sellers, click below: