Buying a house in Birmingham is not easy. Apart from the high price of the house, you also have to pay other costs, such as legal fees. Just search for “legal fees for buying house Birmingham” and you will see a list of sites giving details of the legal fees. After conducting a detailed research, we have put together this article to shed some light on how much you will need to pay regarding legal fees when investing in a house in Birmingham.
The First Stage
First, you need to look for a house you can afford to buy. You can get help from estate agents with this. Once you have found a few good sellers, you may want to look for a solicitor or conveyancer to represent you.
Solicitor’s Legal Fees and Costs
In the UK, solicitors or conveyancing professionals take care of the legal matters of the property to be bought as well as sold. For their services, they charge legal fees including disbursements when you ask for a conveyancing quote. The legal fees while buying a house will include their basic fees and disbursements.
- Solicitor’s Basic Fee
As the term suggests, basic fees are the fee that you will pay for the conveyancing services of a solicitor. Aside from the basic fee, you may have to pay them additional fees based on tasks performed.
Disbursements costs include survey costs, registry fees, land tax, stamp duty and local searches. These include legal fees and small additional fees paid to the third party.
How can you save money on legal costs? Here are some ways of saving money on legal costs.
Stamp Duty Cost and Land Tax
The cost of stamp duty is proportional to the price of the house, which means the higher the price of the property, the higher the stamp duty. For tax purpose, you need to have a budget more than the price of the house.
Buying a house with a low price tag can save you a good amount of money on stamp duty and land tax. Since stamp duty is included in the legal fees charged by the solicitor, buying a low priced house will bring down this cost.
Leasehold Property and Freehold Property
Leasehold properties are more complicated than the freehold properties; you will have to pay a lower fee to the solicitor if you are dealing with freehold properties
Go for legal aid
You can go for legal aid if you qualify. Legal aids are available to those in need, such as people with discrimination issues and the people who are in heavy debt.
To be on the safe side and save money, a conditional agreement is an option. In this case, you can go for “no completion no pay” agreement with your solicitor. Another alternative is a damage based agreement.
So, this was a glance at the legal fees for buying house in Bermingham, and some tips that can help you save money on these fees. Hopefully, this can make your purchase more affordable for you.