Our pricing depends on the price of the property and the complexity of the matter. Leasehold property is a lot more complicated than freehold property and subsequently takes a lot longer to deal with.
Our fees for a typical leasehold purchase range from around £780 (inc. VAT) for a simple transaction to around £2500 (inc. VAT) for a defective lease.
These figures will vary in cases with special complications including:
- Obtaining management pack from third party
- Dealing with third parties regarding management enquiries
This is why it is important that we give you an individual cost estimate at the start of the transaction, taking into account the important features of your purchase. We will always advise you immediately about any complications and discuss the potential impact on prices before we incur any additional charges.
Our fees cover all of the work required to complete your purchase, including dealing with registration of your ownership at the Land Registry and dealing with payment of Stamp Duty Land Tax if the property is in England. We do not deal with purchases in Wales.
Disbursements are fees we are required to pay out on your behalf to third parties and include the following:-
- Search fee – approximately £228 depending on the local authority
- H M Land Registry fee – This is set by the Land Registry according to the purchase price (see Land Registry fee scale on their website)
- Electronic money transfer fee – £35
- VAT – we will add VAT to our charges at the rate which applies when the work is one. Currently 20%
Stamp Duty Land Tax
This depends on the purchase price of the property and you can calculate the amount you will need to pay by using HMRC’s website.
Anticipated disbursements are certain fees which are set out in the individual lease relating to the property. The following list is not exhaustive and other disbursements may apply depending on the terms of the lease. We will update you on the specific fees upon receipt and review of the lease from the seller’s solicitor.
- Notice of transfer fee – this fee if chargeable is set out in the lease and costs £75-£250
- Notice of charge fee (if the property is to be mortgaged) – This fee is set out in the lease and costs £75-250
- Deed of Covenant fee – This fee is provided by the management company and can be difficult to estimate. Often it is between £150-£350
- Certificate of compliance fee – To be confirmed by either the Landlord or management company and can range between £75-£300
These fees vary from property to property and can on occasion be significantly higher than the ranges given above. We can give you an accurate figure once we have sight of the specific documents.
You should also be aware that ground rent and service charge are likely to apply throughout your ownership of the property. We will confirm this to you as soon as we receive this information.
How long will my leasehold purchase take?
This is dependent on a number of factors but the average process takes between 14-18 weeks. Leasehold property is a lot more complicated than freehold property as there are extra matters to check on, for example, who is responsible for repair/maintenance of the property, insurance arrangements, management fees, to name a few. If you are buying a property that requires an extension of the lease because the current term is not acceptable, this can take significantly longer and anything between 4- 6 months. In such a situation, additional charges would apply.
Stages of the process:
- Take your instructions and give any initial advice required
- Check finances are in place to fund the purchase
- Receive and advise on contract documents
- Receive and advise on management pack including ground rent and service charge arrangements
- Carry out searches
- Obtain further planning documentation if required
- Raise any necessary enquiries of the seller’s solicitor
- Give you advice on all documents and information received
- Advise on the conditions of your mortgage offer
- Send final contract to you for signature
- Draft transfer document
- Advise on joint ownership
- Exchange contracts and notify you
- Obtain pre-completion searches
- Arrange for all monies required to be received from your lender and you
- Complete purchase
- Deal with payment of Stamp Duty Land Tax
- Register your ownership of the property with the Land Registry
- Service any notices as required in the Lease
Our fees assume that:-
- This is a standard transaction and that no unforeseen matters arise including, but not limited to, a defect in title which would require remedying prior to completion or the preparation of additional documents ancillary to the main transaction
- This is the assignment of an existing lease and not the grant of a new lease
- The transaction is concluded in a time manner and no unforeseen complications arise
- All parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
- No indemnity policies are required. Additional disbursements may apply if indemnity policies are required
Listed below are the profiles of all of our Residential Conveyancing team where you can find out more about their experience and qualifications. The team member assigned to your case will vary depending on your location and the complexity of your case.