Conveyancing disbursements explained

When you compare conveyancing quotes, you will see two kinds of cost. The first is the legal fee, which is what the firm charges for its work. The second is disbursements, which is what we explain here. Knowing the difference helps you read a quote properly and spot whether a low headline price is hiding a higher total.

1 What disbursements actually are

Disbursements are third-party costs your conveyancer pays on your behalf and then passes on to you. They are not the firm's fee. They are payments to other organisations, such as HM Land Registry, local authorities, search providers and your bank, that have to happen for the transaction to go through.

Because these costs come from outside parties, your conveyancer has little control over them. A search fee is set by whoever produces the search. HM Land Registry sets its own charges. This is why two firms can quote very similar legal fees but slightly different disbursements: they are estimating the same external costs, sometimes through different suppliers. If you want the wider context first, it helps to read what conveyancing is.

2 The common disbursements when you buy

Most disbursements appear when you are buying, because a purchase needs checks that a sale does not. Here are the ones you will usually see on a quote.

• Property searches. These cover things like the local authority, drainage and water, and environmental checks, plus extras depending on the area. They are a sizeable part of the bill and they vary by council. See property searches explained for what each one looks for.
• Land Registry fee. A government charge to register you as the new owner. It is banded by the price of the property, so a more expensive home usually means a higher fee. The bands change from time to time, so check the current rate when you get a quote.
• Bank transfer fee. A small charge for sending the purchase money securely by same-day transfer (often called a CHAPS or telegraphic transfer fee) on completion day.
• ID and anti-money-laundering (AML) checks. Firms are legally required to verify who you are and where your money comes from. There is usually a modest per-person charge for this.
• Stamp Duty Land Tax (SDLT). A tax on most purchases above a threshold in England and Northern Ireland. Your conveyancer files the return and pays it for you, so it shows up alongside disbursements. We cover it properly in Stamp Duty explained.
• Bankruptcy and priority searches. Small Land Registry searches your conveyancer runs late in the process, especially when there is a mortgage.

SDLT is really a tax rather than a third-party service fee, but it is usually grouped with disbursements because the firm collects and pays it. Where it applies, it is often the largest single number on a purchase quote. Note that SDLT is an England tax: Scotland uses Land and Buildings Transaction Tax, and Wales uses Land Transaction Tax, so the rules and thresholds differ depending on where you are buying. Check the current rates for your nation, as they change.

3 Disbursements when you sell, remortgage or own leasehold

Selling has far fewer disbursements than buying, because you are not running searches or paying SDLT. The main ones are official copies of your title from HM Land Registry, which are inexpensive, and a bank transfer fee if money needs to move, for example to redeem a mortgage.

A remortgage sits somewhere in between. There is no SDLT and no estate agent, but your new lender will usually want some searches (or search insurance) and a Land Registry fee to update the charge on your property. Many lenders offer a free or low-cost legal package, which can change the disbursement picture.

Leasehold packs and extra fees

If you are buying or selling a leasehold flat, expect more disbursements. A seller usually has to buy a leasehold management pack (the seller's information form for a flat is often known as an LPE1) from the freeholder or managing agent. It can be one of the more expensive single items, and the price is largely outside anyone's control. A buyer may face notice of transfer and notice of charge fees, a deed of covenant fee, and sometimes a certificate of compliance, all charged by the freeholder or management company. If leasehold applies to you, it is worth reading leasehold and freehold explained so the extra costs are no surprise.

4 Why disbursements vary, and how to compare fairly

Disbursements differ from one quote to the next for honest reasons, not just sharp pricing. The main causes are worth knowing so you can compare like with like.

• Location. Search costs are set by local councils and water companies, so the same package costs more in some areas than others.
• Property type. Leasehold, new-build and unusual titles need extra searches and packs that a standard freehold does not.
• Price band. The Land Registry fee and SDLT both rise with the value of the property.
• Whether figures are firm or estimated. Early in the job, some disbursements are best estimates. They firm up once searches are ordered and any leasehold pack arrives.

When you read a quote, check that disbursements are itemised, not lumped into one figure, and that VAT is shown clearly. VAT applies to most legal fees and some disbursements but not all, so an inclusive total is the fair way to compare. For the bigger picture on pricing, see how much conveyancing costs.

Disbursements are not a sign of a firm padding the bill. They are real costs that any conveyancer would have to pass on. The thing to look for is a quote that is honest and itemised, so the total is clear from the start. You can compare fixed-fee quotes from SRA-regulated solicitors and licensed conveyancers side by side, free and with no obligation, in about 60 seconds, and see disbursements laid out clearly before you choose.