Disbursements are expenses that your solicitor or conveyancer incurs on your behalf as part of the property transaction. They are separate from the solicitor's own professional fee and cover essential third-party services and charges that are needed to complete the purchase or remortgage.
Common disbursements include local authority searches (checking planning, building control, and environmental information), environmental searches (flood risk, contaminated land), Land Registry fees (for registering your ownership and the mortgage), bankruptcy searches, and bank transfer fees (for sending large sums electronically). The total cost of disbursements typically ranges from £300 to £800 for a standard transaction.
Disbursements are generally non-negotiable because they are fixed charges from third parties. Your solicitor should provide an estimate of likely disbursements at the outset. Some searches are mandatory (required by the lender), while others are optional but advisable. Stamp duty is technically a disbursement as well, though it is usually listed separately due to its potentially large size.
Your solicitor provides a breakdown of disbursements for your £280,000 purchase: local authority search £160, environmental search £40, water and drainage search £55, Land Registry search £3, Land Registry registration fee £270, bankruptcy search £2, bank transfer fee £35, ID verification £12. Total disbursements: £577, payable on top of the solicitor's fee of £1,100 plus VAT.
Key Points
- Third-party costs paid through your solicitor during conveyancing
- Include searches, Land Registry fees, and bank transfer charges
- Typically total £300 to £800 for a standard purchase
- Separate from and in addition to the solicitor's professional fee
- Most disbursements are fixed and non-negotiable