Cost Information: Leasehold Purchase

 

Purchase of a leasehold residential property

 

Our fees cover all of the work required to complete the purchase of your new home, including dealing with registration at the Land Registry and dealing with the payment of Stamp Duty Land Tax (Stamp Duty) if the property is in England, or Land Transaction Tax (Land Tax) if the property you wish to buy is in Wales.

 

Conveyancer's fees and disbursements

We will provide you with a quotation based on the particular circumstances of your purchase and our fees will take into account any unusual or complex matters that are likely to be encountered.

 

By way of example, for the purchase of a leasehold property valued at £250,000 with a registered title our fees would be £800 plus VAT of 20%

 

Disbursements

• Search fee £230
• Land Registry fee - £100- £295
• Electronic money transfer - £34.80
• BACS payment for stamp duty - £15.00

 

Disbursements are costs related to your matter that are payable to third parties, such as search fees. We handle the payment of the disbursements on your behalf to ensure a smoother process. There are certain disbursements which will be set out in the individual lease relating to the property. The disbursements which we anticipate will apply are set out separately below. This list is not exhaustive and other disbursements may apply depending on the term of the lease. We will update you on the specific fees upon receipt and review of the lease from the seller's solicitors.

 

If we are required to send funds by BACS/Bank Transfer, an administrative fee may have to be charged.

 

Disbursements may be chargeable for VAT at 20%.

Anticipated additional Disbursements

• Notice of Transfer fee – This fee if chargeable is set out in the lease. Often the fee is between £50-£150.
• Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease. Often the fee is between £50 - £150.
• Deed of Covenant fee – This fee is provided by the management company for the property and can be difficult to estimate. Often it is between £150 - £300.
• Certificate of Compliance fee - To be confirmed upon receipt of the lease, as can range between £50 - £150.

 

These fees vary from property to property and can on occasion be significantly more than the ranges given above. We can give you an accurate figure once we have sight of your 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 the ground rent and the anticipated service charge as soon as we receive this information.

 

Stamp Duty Land Tax

 

The amount of Stamp Duty you may have to pay depends on a number of factors; e.g. the purchase price of your property, whether you are a first time buyer or if you are buying a second property. You can calculate the amount you will need to pay by using HMRC's website or if the property is located in Wales by using the Welsh Revenue Authority's website here.

 

 

Stages of the process

The precise stages involved in the purchase of a residential leasehold property vary according to the circumstances. However, below we have suggested some key stages that you may wish to include:

 

• Taking your instructions and giving you initial advice
• Checking finances are in place to fund the purchase and contacting the lender's solicitors if needed
• Receiving and advising on contract documents
• Carrying out searches
• Obtaining further planning documentation if required
• Making any necessary enquiries of the seller's solicitor
• Giving you advice on all documents and information received
• Going through conditions of the mortgage offer
• Sending final contract to you for signature
• Drafting a Transfer
• Advising on joint ownership
• Obtaining pre-completion searches
• Agreeing a completion date (the date from which you own the property)
• Exchanging contracts and notifying you that this has happened
• Arranging for all monies needed to be received from your lender and you
• Completing the purchase
• Dealing with payment of Stamp Duty/Land Tax
• Dealing with post completion requirements of the Lease
• Dealing with application for registration at H M Land Registry

 

How long will my house purchase take?

The average process takes between 8-12 weeks. It can be quicker or slower, depending on the parties in the chain. For example, if you are a first time buyer, purchasing an empty property with a mortgage in principle, it could take 8 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 3 and 5 months. In such, a situation additional charges would apply.

 

* Our fee assumes that:
A      this is a standard transaction and that no unforeseen matters arise including for example (but not limited to) a defect in title which requires remedying prior to completion or the preparation of additional documents ancillary to the main transaction
B      this is not a purchase under right to buy, a purchase at auction or the purchase of a property that has been repossessed
C      this is the assignment of an existing lease and is not the grant of a new lease
D      the transaction is concluded in a timely manner and no unforeseen complications arise
E      all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
F       no indemnity policies are required. Additional disbursements may apply if indemnity policies are required.

 

Any additional work will either be carried out at an additional fixed fee or at an hourly charging rate of £95 plus Vat.

 

We will be happy to discuss our fees and your particular requirements in more detail with you before you make a decision whether or not to instruct us.