Buying a property with a mortgage comes with several costs, and it isn’t always obvious which ones are paid to your lender and which relate to the legal work involved.
Solicitor mortgage fees cover the legal work your conveyancer needs to complete when a mortgage forms part of your property transaction. The amount you pay can depend on the property, your lender and the work involved. You may also have separate lender fees and third-party costs to account for.
Understanding these costs before your transaction begins can make your conveyancing quote easier to follow and help you budget for your move.
What Are Solicitor Mortgage Fees?
Solicitor mortgage fees are the legal fees associated with dealing with a mortgage during the conveyancing process.
If you’re buying a home with a mortgage, your conveyancer will need to complete legal checks on the property while also meeting the requirements set by your mortgage lender.
Your conveyancer may need to:
- review your mortgage offer and relevant conditions
- check the legal title to the property
- complete searches and enquiries
- make sure relevant lender requirements have been satisfied
- request and handle mortgage funds
- complete the transaction and deal with registration at HM Land Registry
The exact work required will depend on your transaction and your mortgage lender.
How Much Are Solicitor Fees When Getting a Mortgage?
There isn’t one standard solicitor mortgage fee that applies to every property transaction. Your legal costs will depend on the work your conveyancer needs to carry out.
Several factors can affect your overall conveyancing fees, including the value and type of property, whether it’s freehold or leasehold, your mortgage lender and any additional legal work required.
A straightforward purchase with a mortgage, for example, may have different legal requirements to a leasehold purchase involving additional enquiries and documentation.
Your conveyancing quote should provide a breakdown of the legal fees and anticipated third-party costs associated with your transaction. Check what’s included in the quote and which circumstances could lead to further charges before instructing your conveyancer.
What Do Mortgage Solicitor Fees Cover?
Your mortgage solicitor fees pay for the professional legal work involved in progressing your transaction and meeting the relevant requirements of your lender.
When you buy a property with a mortgage, your lender will have a financial interest in the property. Your conveyancer therefore needs to check the legal title and identify issues that could affect the property or the lender’s security.
Your conveyancer will also review the mortgage instructions received from your lender and make sure the necessary legal requirements have been dealt with before completion.
Once the transaction completes, the lender’s legal charge will usually need to be registered against the property at HM Land Registry.
The legal fee you pay your conveyancer shouldn’t be confused with other costs that can appear on your completion statement or conveyancing quote. Some payments are made to third parties as part of completing the necessary checks and registration.
Are Solicitor Mortgage Fees the Same as Mortgage Lender Fees?
No. Mortgage solicitor fees and mortgage lender fees cover different parts of the process.
Your solicitor or conveyancer charges legal fees for the work involved in your property transaction. Mortgage lender fees are charged by the bank or building society providing your mortgage.
Depending on the mortgage product you choose, lender charges could include a product or arrangement fee and valuation-related costs. Your existing lender may also charge an early repayment charge if you repay your mortgage during a period when one applies.
Check the terms of your mortgage carefully so you understand the charges set by your lender alongside the legal costs of your transaction.
Why Can Solicitor Mortgage Fees Vary?
The legal work needed for one mortgage transaction can be different to another, which means solicitor fees can vary too.
The type of property
Leasehold properties can involve additional documentation and enquiries concerning the lease, freeholder or managing agent. Other property characteristics or title issues can also create additional legal work.
Your mortgage lender
Mortgage lenders can have specific requirements that need to be satisfied before they’ll release funds. Your conveyancer will review the lender’s instructions and complete the relevant legal work.
The type of transaction
The work involved when buying a property with a mortgage differs from the process of remortgaging a home you already own. Your legal fees will reflect the work needed for your particular transaction.
Additional legal work
Certain circumstances can require work outside the standard conveyancing process. You might, for example, need additional documentation or have a mortgage with conditions that require further investigation.
LPL provides an Additional Fees List explaining charges that may apply when work or services are needed outside the standard legal procedures of a conveyancing transaction.
What Are Lender Solicitor Fees?
Your mortgage lender needs to make sure its legal interests are protected before lending money against a property.
In many residential transactions, a conveyancer can act for both you and your mortgage lender, provided the firm meets the lender’s requirements and is able to act for both parties.
Your conveyancer will then have responsibilities to you as their client while also completing the legal work and checks required by your lender.
If your chosen conveyancer can’t act on behalf of your lender, separate legal representation may be required. That can introduce further costs and another party into the transaction, so checking that your conveyancer can work with your chosen lender early in the process can help you understand what will be required.
Do You Need a Solicitor When Remortgaging?
Legal work will usually be required if you’re remortgaging your property with a different lender.
There isn’t a new property purchase to complete, but your conveyancer still has several important tasks to handle. They’ll need to meet the new lender’s legal requirements, deal with your existing mortgage and register the new mortgage against your property.
If you stay with your existing lender and simply change to another mortgage product, known as a product transfer, a conveyancer may not always be required.
Our remortgage conveyancing service can manage the legal process when you’re changing lenders, releasing equity or refinancing your property.
What Solicitor Fees Could You Pay When Remortgaging?
A remortgage can involve its own legal fees and third-party costs. Your conveyancer may need to review the title to your property, complete checks required by your new lender, review your mortgage instructions and obtain a redemption statement for your existing mortgage.
At completion, your existing mortgage will usually be repaid using the funds provided by your new lender. The old charge can then be removed and your new lender’s charge registered at HM Land Registry.
The exact remortgage legal fees will depend on your circumstances and any additional work required.
It’s also worth looking at the wider cost of remortgaging rather than legal fees in isolation. Your current or new lender may have its own charges, so consider these alongside your conveyancing costs when comparing mortgage deals.
Does Your Mortgage Lender Pay Your Solicitor Fees?
Some mortgage deals can include legal services or a contribution towards legal costs as part of the remortgage package.
The terms will depend on the lender and mortgage product. Check exactly what the offer includes, which legal services are covered and whether you’re required to use a particular conveyancer or panel firm.
A deal that includes legal costs can initially appear cheaper, but the wider mortgage terms and other fees will also affect what you pay overall.
When Do You Pay Solicitor Fees for a Mortgage?
The point at which legal fees and other conveyancing costs need to be paid can vary.
You may need to pay some money during the conveyancing process to cover costs incurred on your behalf. The remaining legal fees and costs will usually be accounted for as your transaction approaches completion.
Your conveyancer should explain what needs to be paid, when payment is due and what each charge relates to.
If you’re unsure about something shown on your quote or completion statement, ask before making the payment. A clear breakdown will help you distinguish the conveyancer’s legal fee from third-party costs and other charges associated with your transaction.
How Can You Understand Your Mortgage Conveyancing Quote?
The cheapest headline figure doesn’t necessarily tell you what your property transaction will cost overall. Look at the complete quote and what’s included before comparing conveyancers.
Your quote may distinguish between the conveyancer’s professional legal fees, VAT and payments made to third parties. It should also provide information about additional fees that could become relevant if your transaction requires work outside the original scope.
Check the quote carefully and ask about anything you don’t understand. You should have a clear picture of the likely costs before deciding who will handle your conveyancing.
FAQs About Solicitor Mortgage Fees
If you’re still unsure how solicitor mortgage fees work, these common questions cover some of the costs and situations you may come across when buying or remortgaging a property.
Do you pay solicitor fees when getting a mortgage?
If you’re buying a property with a mortgage, you’ll normally pay conveyancing fees for the legal work involved in the purchase. Some of that work will relate directly to the requirements of your mortgage lender.
Are legal fees included in a mortgage?
Legal fees are generally separate from the amount you borrow through your mortgage. Some mortgage products, particularly remortgage deals, may include legal services or a contribution towards certain legal costs. Check the individual mortgage offer to see what’s covered.
Does a solicitor charge more if you have a mortgage?
Having a mortgage can create legal work that wouldn’t be required in a transaction without mortgage finance. The final fee will depend on the conveyancer, lender and circumstances of your transaction.
Who pays the lender’s legal fees?
The arrangements can depend on the mortgage and how the lender is represented. In many residential transactions, the buyer’s conveyancer can also act for the mortgage lender. Your conveyancer should explain any lender-related legal costs that apply to your transaction.
Can solicitor fees be added to a mortgage?
You shouldn’t assume your conveyancing fees can be added to your mortgage borrowing. Speak to your mortgage lender or broker if you’re considering adding fees or other costs to the amount you borrow, as the options will depend on your mortgage product and lending criteria.
Do you pay solicitor fees when remortgaging?
Legal fees can apply when you remortgage, particularly when moving to a new lender. Your conveyancer will need to complete the legal work required to redeem your existing mortgage and put the new lender’s charge in place.
Can I use the same solicitor as my mortgage lender?
A conveyancer may be able to represent you and your mortgage lender during the same transaction if they’re able to act for that lender. Check this when choosing your conveyancer, as separate representation can affect the work, cost and timescale involved.
Get Clear Legal Support With Your Mortgage
Mortgage fees can quickly become confusing when lender charges, legal fees and third-party costs all appear at different points in your transaction. Having a conveyancer who explains what you’re paying and keeps you updated can make the legal side much easier to manage.
With LPL, you’ll have a dedicated conveyancer managing your transaction, supported by regular updates and 24/7 access to LPL Cloud, where you can track progress, upload documents and access information relating to your case.
To find out what the legal side of your mortgage or remortgage could cost, get an instant quote today.
