Bank Transfer Fee in Conveyancing: Why It Costs So Much
Why solicitors charge a telegraphic transfer fee, how much it typically costs, and whether it is negotiable.
What you need to know
A bank transfer fee (also called a CHAPS fee or telegraphic transfer fee) is a disbursement your solicitor charges for sending money electronically on completion day. It typically costs £25 to £50 per transfer, and most sellers pay for two transfers: one to redeem the mortgage and one to receive the net sale proceeds. The total cost is usually £50 to £100.
- Bank transfer fees in conveyancing typically cost £25 to £50 per CHAPS payment, with most sellers needing two transfers totalling £50 to £100.
- Solicitors use CHAPS rather than free Faster Payments because CHAPS guarantees same-day, irrevocable settlement -- essential for property completions.
- The fee includes both the raw CHAPS cost (£20 to £35) and a solicitor markup (£5 to £15) covering compliance, fraud checks, and client-money handling.
- Bank transfer fees are rarely negotiable individually, but you can reduce your total costs by choosing a firm that bundles them into a fixed-fee quote.
- The charges appear as line items on your completion statement and should match the estimate in your solicitor's original quote.
Pine handles the legal prep so you don't have to.
Check your sale readinessIf you have ever looked at a conveyancing quote and wondered why sending money electronically costs £40 or more, you are not alone. The bank transfer fee -- sometimes called a CHAPS fee or telegraphic transfer fee -- is one of the most commonly queried disbursements in residential property transactions. It appears small next to your solicitor's professional fee, but when you are charged for two or three transfers at £35 to £50 each, the total can feel disproportionate for what looks like a simple electronic payment.
This guide explains what the bank transfer fee actually covers, why it costs what it does, how many transfers you are likely to need as a seller, and whether there is any room to negotiate. It covers residential property sales in England and Wales. For a broader view of every cost involved in selling, see our conveyancing costs breakdown.
What is a bank transfer fee in conveyancing?
A bank transfer fee is the charge your solicitor applies for sending money via the CHAPS (Clearing House Automated Payment System) network. CHAPS is the UK's high-value, same-day payment system, operated by the Bank of England. It guarantees that funds arrive at the recipient's bank on the same working day, which is why it is the standard method for moving money on completion day.
In conveyancing, the term "bank transfer fee" is used interchangeably with "telegraphic transfer fee" and "CHAPS fee." The phrase "telegraphic transfer" is a holdover from the days when payments were sent by telegraph wire. Today, all transfers are electronic, but the name has stuck in solicitors' fee schedules.
The bank transfer fee is classified as a disbursement -- a third-party cost your solicitor pays on your behalf. It is separate from their professional legal fee and should be itemised on your quote and on your completion statement. For a wider look at all the disbursements sellers encounter, see our guide to disbursements explained.
How much does it cost in 2026?
Bank transfer fees charged by solicitors in 2026 typically range from £25 to £50 per transfer, with the majority of firms charging between £30 and £45. The variation depends on the solicitor's banking arrangement and the markup they apply.
As a seller, you will usually need at least two CHAPS transfers on completion day. Here is how the cost breaks down:
| Transfer | Purpose | Typical cost (inc. VAT) |
|---|---|---|
| Transfer 1 | Mortgage redemption -- paying off your outstanding mortgage to the lender | £25 to £50 |
| Transfer 2 | Net proceeds -- sending the remaining sale money to your bank account | £25 to £50 |
| Transfer 3 (if needed) | Second-charge lender, Help to Buy equity loan, or bridging finance redemption | £25 to £50 |
For a straightforward freehold sale with one mortgage, the total bank transfer cost is typically £50 to £100. If you own the property outright with no mortgage, you may only need a single transfer, reducing the cost to £25 to £50.
These figures are consistent with published disbursement data from the HomeOwners Alliance and comparison platforms including Compare My Move.
Why is the fee so high for an electronic payment?
When you send money using your banking app, it is free. So why does your solicitor charge £35 to £50 to press the same button? The answer lies in the difference between everyday payments and the CHAPS system, combined with the regulatory obligations solicitors face when handling client money.
The raw cost of CHAPS
The CHAPS system charges a per-transaction fee to the sending bank. For corporate and business accounts (which is what solicitors' client accounts are), this cost is typically £20 to £35 per transfer, depending on the solicitor's banking arrangement. Some large firms with high transaction volumes negotiate lower rates, while smaller practices may pay the full amount.
The solicitor's markup
On top of the raw CHAPS cost, most solicitors add a markup of £5 to £15 per transfer. This covers the administrative work involved in each payment:
- Bank detail verification: Before sending any funds, the solicitor must verify the recipient's bank details using a confirmation of payee check. This is a critical anti-fraud measure to prevent payments being diverted to fraudulent accounts -- a type of scam known as "Friday afternoon fraud" that has cost conveyancing clients millions of pounds.
- Client money compliance: Solicitors are bound by the SRA Accounts Rules, which impose strict requirements on how client money is held, transferred, and reconciled. Every payment in and out of the client account must be recorded, checked, and audited.
- Professional indemnity risk: If a solicitor sends funds to the wrong account, they are personally liable. Their professional indemnity insurance covers this risk, but it comes at a cost that is factored into the per-transfer charge.
- Reconciliation and accounting: After each transfer, the solicitor must reconcile the client account to confirm the correct amount was sent to the correct recipient. This is not optional -- it is a regulatory requirement.
While £40 for a bank transfer may feel excessive, the compliance infrastructure behind each payment is considerably more involved than a personal bank transfer from your own account. The solicitor is not simply moving money -- they are doing so under heavy regulatory scrutiny with personal liability if anything goes wrong.
CHAPS vs Faster Payments: why solicitors use CHAPS
A common question sellers ask is why their solicitor cannot simply use a free Faster Payment instead of an expensive CHAPS transfer. The two systems differ in important ways that make CHAPS the only practical option for completion-day payments.
| Feature | CHAPS | Faster Payments |
|---|---|---|
| Settlement guarantee | Guaranteed same-day (irrevocable once sent) | Usually instant, but not guaranteed same-day |
| Transaction limit | No upper limit | Typically £1 million (varies by bank) |
| Cost to sender | £20 to £35 per transfer | Free or very low cost |
| Reversibility | Irrevocable once processed | Can be recalled in some circumstances |
| Accepted for completions | Yes -- industry standard | Not widely accepted by solicitors or lenders |
| Operating hours | Bank of England business hours (6am to 6pm) | 24/7 |
The critical factor is settlement certainty. On completion day, your solicitor must send funds to your mortgage lender and receive funds from the buyer's solicitor within a tight window. If the payment does not arrive by the cut-off time, the completion cannot go ahead that day. CHAPS eliminates this risk because it guarantees same-day settlement. Faster Payments, while usually instant, does not carry the same guarantee, and the transaction limits are insufficient for many property sales.
The Law Society's Conveyancing Protocol effectively requires CHAPS for completion payments under the conveyancing protocol, and mortgage lenders will not accept Faster Payments for mortgage redemptions. Until these industry standards change, the CHAPS fee remains unavoidable.
Bank transfer fee vs telegraphic transfer fee
You may see either term on your conveyancing quote or completion statement. They mean exactly the same thing. "Telegraphic transfer" dates back to when inter-bank payments were sent by telegraph, and many solicitors' billing systems still use this older terminology. Other variations include "TT fee," "electronic transfer fee," and simply "CHAPS fee." Regardless of the label, the underlying charge is the same: the cost of sending money via the CHAPS network.
When comparing quotes from different solicitors, be aware that some firms list the charge differently. One might quote "CHAPS fee: £35 + VAT per transfer" while another says "telegraphic transfer fee: £42 per transfer (inclusive of VAT)." Make sure you are comparing VAT-inclusive figures and confirm how many transfers are included. For guidance on what else to check in a solicitor's quote, see our guide on solicitor fees for selling a house.
Is the bank transfer fee negotiable?
Technically, you can ask your solicitor to reduce or waive the bank transfer fee. In practice, most firms treat it as a non-negotiable disbursement. It is a relatively small amount -- typically £50 to £100 in total -- and solicitors are unlikely to absorb the cost when they face genuine banking charges for each transfer.
However, there are ways to reduce the impact of this charge on your overall costs:
- Choose a firm with an all-inclusive fixed fee. Some solicitors bundle bank transfer fees into their fixed-fee quote, meaning you pay one total price with no separate disbursement charges for CHAPS. This can be cheaper overall and makes it easier to compare quotes.
- Negotiate the professional fee instead. You are more likely to achieve a meaningful saving by negotiating the solicitor's main legal fee (which is typically £800 to £1,500 plus VAT) than by haggling over individual disbursements. Even a 10% reduction on a £1,000 fee saves more than eliminating both bank transfer charges.
- Ask how many transfers are needed. If your solicitor quotes for three transfers but you only have one mortgage and no other lenders, query whether two transfers are sufficient. Reducing from three to two saves £25 to £50.
Where the fee appears on your completion statement
Bank transfer fees appear in the disbursements section of your completion statement. They should be listed as separate line items, with one charge per transfer. Here is how they typically appear:
| Item | Amount |
|---|---|
| CHAPS fee -- mortgage redemption to [lender name] | £40.00 |
| CHAPS fee -- net proceeds to seller | £40.00 |
| Total bank transfer fees | £80.00 |
Check this section of your completion statement against the original fee estimate your solicitor provided when you instructed them. If the number of transfers or the cost per transfer has changed, ask your solicitor to explain the difference. For a full guide to reading and checking your completion statement, see our completion statement guide.
How to avoid paying more than necessary
You cannot avoid the bank transfer fee entirely -- it is a genuine cost of the conveyancing process. But you can make sure you do not pay more than you need to:
- Get an itemised quote upfront. Before instructing a solicitor, ask for a full breakdown of all fees and disbursements, including how many CHAPS transfers are anticipated and the cost per transfer. Our guide on solicitor fees for selling a house explains what to look for when comparing quotes.
- Confirm the number of transfers. If your solicitor has quoted for three transfers but you only have a single mortgage to redeem, query the third transfer. You should only be charged for transfers that are actually made.
- Compare total costs, not individual charges. A solicitor who charges £45 per CHAPS transfer but has a lower professional fee may still be cheaper overall than one who charges £25 per transfer with a higher legal fee. Always compare the total cost including VAT, all disbursements, and any supplements.
- Check for all-inclusive pricing. Some firms advertise a single fixed price that covers everything including bank transfers, Land Registry copies, and ID checks. This removes the risk of unexpected disbursement charges at completion.
The fraud risk behind the fee
One of the reasons solicitors take bank transfers so seriously -- and charge accordingly -- is the growing threat of conveyancing fraud. In what is known as "Friday afternoon fraud," criminals intercept email communications between solicitors and clients, then send fake payment instructions with fraudulent bank details. If the solicitor sends funds to the wrong account, the money can be lost permanently.
According to the SRA's fraud guidance, property transactions are a prime target for this type of crime because they involve large sums transferred at predictable times. The confirmation of payee checks, bank detail verification, and compliance procedures that contribute to the bank transfer fee are all designed to protect against this risk.
As a seller, you should also take precautions: never send your bank details by email without confirming them by telephone, and be suspicious of any last-minute changes to payment instructions. If your solicitor contacts you to verify bank details before sending your proceeds, that is a sign they are following proper anti-fraud procedures -- and part of what the bank transfer fee pays for.
How Pine helps you manage conveyancing costs
Bank transfer fees are just one of several disbursements that appear on your final bill. When you add up CHAPS fees, Land Registry copies, ID verification checks, and any indemnity insurance, the total can surprise sellers who only focused on the headline solicitor fee when they instructed.
Pine helps you get ahead of these costs by preparing your legal paperwork before you even list your property. By completing your TA6 and TA10 property information forms with guided AI support and ordering property searches at near-trade prices, you reduce the risk of delays, additional enquiries, and unexpected charges that can inflate your conveyancing bill. A well-prepared seller means fewer complications, fewer follow-up queries, and a smoother path to completion day -- which is ultimately when those bank transfer fees are incurred.
Sources and further reading
- CHAPS -- Clearing House Automated Payment System (Bank of England)
- SRA Accounts Rules (Solicitors Regulation Authority)
- Transparency in Price and Service (Solicitors Regulation Authority)
- Protecting Yourself from Fraud (Solicitors Regulation Authority)
- Conveyancing Protocol (The Law Society)
- Conveyancing Fees: What to Expect (HomeOwners Alliance)
- Solicitor Fees When Selling a House (Compare My Move)
Frequently asked questions
What is a bank transfer fee in conveyancing?
A bank transfer fee in conveyancing is the charge your solicitor passes on for sending money electronically via the CHAPS (Clearing House Automated Payment System) network on completion day. It covers the cost of transferring large sums securely and in real time, such as redeeming your mortgage or sending your net sale proceeds to your bank account. The fee is classified as a disbursement, meaning it is a third-party cost your solicitor pays on your behalf rather than part of their own professional fee.
How much is the bank transfer fee when selling a house?
The bank transfer fee when selling a house in 2026 typically ranges from £25 to £50 per transfer, with most solicitors charging between £30 and £45 including VAT. As a seller, you may need two transfers: one to redeem your mortgage and one to send your net proceeds to your personal bank account. This means you could pay £50 to £100 in total bank transfer fees. The exact charge depends on the solicitor's firm and any markup they apply on top of the raw CHAPS fee.
Why do solicitors charge so much for a bank transfer?
The raw cost of a CHAPS payment to a bank or building society is typically £20 to £35. Solicitors add a markup of £5 to £15 per transfer to cover the administrative overhead involved: verifying the recipient's bank details against fraud checks, reconciling client account funds, maintaining compliance with Solicitors Regulation Authority (SRA) rules on handling client money, and carrying the risk associated with sending six-figure sums electronically. While the markup may feel steep for pressing a button, the compliance obligations behind each transfer are substantial.
Can I negotiate the bank transfer fee with my solicitor?
In theory, yes, but in practice most solicitors treat the bank transfer fee as a fixed disbursement that is not open to negotiation. It is a small charge relative to the overall conveyancing cost, so many firms will not reduce it. You are more likely to achieve a saving by negotiating the solicitor's main professional fee or by choosing a firm that includes bank transfers within their fixed-fee quote. Always ask for a fully itemised breakdown of all costs before instructing, so you can compare the total figure across firms.
Is the bank transfer fee subject to VAT?
Whether VAT applies depends on how the solicitor treats the charge. If the fee is passed on at cost as a pure disbursement, it is generally exempt from VAT because it is a third-party cost reimbursed by the client. However, many solicitors add an administrative markup, and HMRC treats the entire charge as a taxable supply if there is any markup beyond the raw bank fee. In practice, most solicitors quote the bank transfer fee inclusive of VAT, typically £35 to £50 per transfer. Always check whether the figure in your quote is inclusive or exclusive of VAT.
How many bank transfers will my solicitor need to make when I sell?
When selling a property, your solicitor will typically make two CHAPS transfers on completion day. The first is to your mortgage lender to redeem your outstanding mortgage. The second is to your personal bank account to send you the net sale proceeds. If there are additional parties to pay, such as a second-charge lender, an equity loan provider (for example, Help to Buy), or a bridging loan company, each one may require a separate transfer at an additional cost of £25 to £50 each.
What is the difference between CHAPS and a normal bank transfer?
A CHAPS transfer is a same-day, irrevocable, high-value payment processed through the Bank of England's real-time gross settlement system. It guarantees that the funds arrive on the same working day, which is essential for property completions where timing is critical. A standard Faster Payment (the type used for everyday online banking) has a £1 million per-transaction limit with most banks and, while usually instant, is not guaranteed same-day. Solicitors use CHAPS for conveyancing because it handles unlimited amounts and provides certainty that the payment cannot be reversed once sent.
Can I ask my solicitor to use a free bank transfer instead of CHAPS?
In most cases, no. Solicitors are required to send completion funds via CHAPS because it provides guaranteed same-day settlement, which is essential for the legal completion process to work. Faster Payments, while free or low-cost, do not offer the same guarantee and have transaction limits that are too low for most property sales. Using a non-guaranteed payment method could mean the mortgage lender does not receive the redemption funds in time, which would delay completion. Most solicitors will not accept the risk of using anything other than CHAPS for completion-day payments.
Does the bank transfer fee appear on my completion statement?
Yes, bank transfer fees should appear as a separate line item in the disbursements section of your completion statement. They are usually listed as 'CHAPS fee', 'telegraphic transfer fee', or 'bank transfer fee'. If your solicitor makes two transfers (one for mortgage redemption and one for your net proceeds), you should see two separate charges. Always check your completion statement carefully against your solicitor's original fee estimate to confirm the number of transfers and the cost per transfer matches what was quoted.
Are bank transfer fees refundable if my house sale falls through?
If your sale falls through before completion, no CHAPS transfers will have been made, so there are no bank transfer fees to pay. These fees are only incurred on completion day itself when your solicitor actually sends the money. However, if your solicitor operates a 'no sale no fee' arrangement, check the terms carefully, as some firms exclude disbursements already incurred from the guarantee. Since bank transfer fees only arise at completion, they should not be charged on a sale that does not complete.
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