Disubursements may include:
Search fees: When acting for purchasers, we need to obtain information from the Local Authority, Drainage and Environmental Agencies.
Government taxes: Apart from VAT, the purchase of your property will be subject to Stamp Duty Land Tax.
Land Registration fees: To confirm your ownership we must register the property in your name for which a fee is charged by the Land Registry. Please note this again is a Government Charge.
Fees charged by mortgage lenders: Where a property is mortgaged, we act for the mortgage lender as well and it is normally a term of the loan that the borrower pays the legal fees of the building society or bank on a purchase/sale. On a sale, we have to ensure that the mortgage is paid off in full. On a purchase, we have to protect the lender in securing its loan against the property. You must always be careful to calculate the amount you owe on your mortgage and be satisfied that you can pay off the loan from the proceeds of the sale. If you do not have enough money, then you will not be able to complete the conveyance which will be a catastrophe.
Agents Commission: A commission is also payable to the estate agent who marketed the property, unless sold by private negotiation. Estate agents’ commission usually ranges fro 0.5% - 3% of the actual sale price and will be subject to VAT.
