Cost Information: Leasehold Sale

 

Sale of a leasehold residential property

 

Our fees cover all of the work required to complete the leasehold sale of your property, including dealing with redemption of any existing mortgage and liaising with freehold /management company and dealing with replies to enquiries.

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

 

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

 

Disbursements

• Land Registry fee - £18.00 approximately
• Electronic money transfer - £34.80 (if required)
• BACS fee - payment of agents account £15.00
• Management Pack fee - to be advised by freeholder

 

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

• Fee for obtaining replies to LPE1– Often the fee is between £100-£300.
• If you are selling a retirement property the lease may contain a clause requiring payment of a percentage of the sale price on completion. Often this fee is 1% of the sale price.

 

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.

Stages of the process

The precise stages involved in the sale 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
• Preparing the contract documents
• Dealing with enquiries received from the buyer's solicitor
• Sending final contract to you for signature
• Agreeing a completion date (the date from which you no longer own the property)
• Exchanging contracts and notifying you that this has happened
• Dealing with payment of the agents fees if so instructed
• Dealing with redemption of mortgage
• Dealing with post completion requirements of the lease/freeholder

 

How long will my sale 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 selling to a first time buyer, with a mortgage in principle, and you have no related purchase it could take 8 weeks. However, if you are selling 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 sale at auction
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.