Legal Fees

Mortgage Fees

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Legal Fees

Get a Free Quote Legal Fees – The Basics

When purchasing or re-mortgaging a property you cannot avoid legal fees - but you may be able to reduce them under certain circumstances. Legal fees will normally be higher for a property purchase than for a re-mortgage.

Legal Fees – Property Purchase
Your solicitor or licensed conveyancer will charge you for administrative work carried out and will also arrange for payments to third parties, in order to facilitate the purchase of the property. Some or all of the following could be included:
Bullet Point local authority search fees;
Bullet Point environmental and drainage search fees;
Bullet Point Land Registry fee;
Bullet Point telegraphic transfer fee;
Bullet Point solicitors’ administration costs;
Bullet Point stamp duty (currently for properties over £120,000).

Legal Fees – Re-mortgaging
From a legal standpoint, re-mortgaging should be a much simpler process than purchasing a property. Your solicitor’s costs should be considerably lower, as less administration is required than for a property purchase. However, the following items need to be covered:
Bullet Point local authority search fees;
Bullet Point Land Registry fee;
Bullet Point solicitors’ administration costs.

How to Reduce Legal Costs
Much of the legal work that has to be undertaken during a property purchase is at the behest of the mortgage lender, in order to safeguard their interests. Therefore, it makes sense for the same solicitor to act for both the purchaser and the mortgage provider. Otherwise the purchaser will have to pay for the same work to be carried out by both their own solicitor and the mortgage lender’s solicitor, leading to a duplication of effort and unnecessary additional costs for the purchaser. Under normal circumstances, having the same solicitor acting for the purchaser and for the financial institution should not be difficult to arrange.

When re-mortgaging, the same principle holds true. However, because the re-mortgage market is very competitive, lenders will often include the cost of legal fees as a part of the package offered to encourage borrowers to choose their re-mortgage proposal.

Summary
Bullet Point Legal fees are a necessary part of a property purchase or re-mortgage;
Bullet Point legal fees are generally lower for a re-mortgage than a purchase;
Bullet Point legal costs can be reduced, if not eliminated completely, under certain circumstances.

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