Buying a house in cash puts you in a unique position.
Unlike regular buyers, you won’t have any mortgage repayments.
But you will still have solicitor’s costs.
Read on to learn what they are.
Do I need a solicitor when buying a house in cash?
Yes. A solicitor is still extremely valuable to the buying process, even when a mortgage isn’t involved.
There are plenty of other roles that this expert can fulfil. This includes:
- Exchange of contracts
- Carrying out property searches
- Transferring funds
- Liaising with other parties
- Property registration.
Unless you have legal experience and expertise, you shouldn’t try these things yourself.
A qualified solicitor will also have indemnity insurance, which gives protection in case something goes wrong.
Solicitors fees when buying a house cash
Data from Unbiased.co.uk found that an average solicitor costs £1,400 when you buy a house in the United Kingdom.
No data shows that solicitors are less expensive when you’re buying in cash.
After all, most of the processes remain the same.
Is there potential for reduced legal rates for cash buyers?
Anecdotally, you may be able to negotiate a better rate with some small, independent firms.
If they charge an hourly fee, then less time may be involved (due to no liaison with a lender being needed).
Also, if you buy at scale, you may be able to negotiate rates based on the volume of work you bring to the solicitor.
But most of the larger firms won’t distinguish in pricing.
What legal steps are avoided when buying a house in cash?
Besides mortgages, there are other hoops that you don’t have to jump through, including:
- Carrying out a survey
- Doing checks on the property
- Taking out insurance.
Avoiding these things can speed up the process. But it could mean buying a house with problems you are unaware of.
Even if a solicitor charges more to do these things, it’s often the right move in the long run.
What extra steps are there for a solicitor when buying a house in cash?
It’s rare for extra steps to be involved. The only possibility is that the checks on your source of funds may be extra stringent.
This is because all parties involved are responsible for ensuring that there’s no money laundering happening.
They may thus double-check and triple-check where your funds have come from.
Do some solicitors specialise in cash purchases?
It’s rare to find a solicitor that only deals with these transactions. Most of the steps involved are the same.
So, there isn’t enough differentiation for it to warrant specialist firms.
You will undoubtedly find solicitors with more experience than others in this area.
And they may thus seem attractive because of their added insight into the process.
How do I find the best solicitor for a cash purchase?
You should speak to several solicitors before choosing which one suits you best.
Explain your situation as a cash buyer, including how you got into this situation and your priorities for the transaction.
Ask for case studies from past customers who were cash buyers. And you may even want to speak to these people.
You could also check their reviews to see if any comments have been left by people who state they were a cash buyer.
Does a solicitor charge up-front or at the end?
In most cases, a solicitor will get you to pay an up-front deposit for their services.
The rest of the bill will then be due at the end once the transaction is complete.
Most solicitor’s charge by the hour. This means that the more work your transaction needs, the higher the cost.
However, some solicitors in the UK charge less conventionally.
For example, they might have an up-front flat fee that doesn’t change.
Or, in some rare cases, they could charge commission on the house’s final sale price.
Understand the solicitor’s pricing before you hire them. This ensures you aren’t blindsided by anything.
