If you are buying a leasehold property there are certain disbursements which will be set out in the individual lease relating to the Property. The additional leasehold 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.
Our Fees On Residential Conveyancing
Most of our services are offered on an hourly rate basis and as many of our clients’ matters are complex and often involve multiple parties, there is rarely a typical case. Our clients are given an estimate of costs after our initial meeting or as part of the engagement process. There are some areas where we are able to be more indicative and, as in accordance with the Solicitors Regulation Authority (SRA) guidance on price transparency, we have published our price and service information where it is possible to be upfront about charges without knowing all the details of the matter.
Purchase Of A Freehold Or Leasehold Residential Property
Our fee covers all the work required to complete the purchase of your property, including advising you on any funding from your bank, dealing with registration at the Land Registry and dealing with payment of Stamp Duty Land Tax (SDLT) 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 base our fees for standard purchases on the following scaled rates:
- Minimum fee of £2,000
- Up to £1,000,000 0.5% of the purchase price
- Up to £2,000,000 0.4% of the purchase price
- Up to £3,000,000 0.3% of the purchase price
- Up to £5,000,000 0.25% of the purchase price
- In excess of £5,000,000 fee to be agreed
The above does not apply to the purchase of apartments and new build houses, for which our scaled rates are:
- minimum fee of £3,500
- Up to £1,000,000 0.6% of the purchase price
- Up to £2,000,000 0.5% of the purchase price
- Up to £3,000,000 0.35 % of the purchase price
- Up to £5,000,000 0.3% of the purchase price
- In excess of £5,000,000 fee to be agreed
Tax Advice
Our fee does not include tax advice, other than in connection with the payment of SDLT except where specialist advice is required due to the nature of the property (e.g the property is mixed use or a multiple dwelling). If you do require tax advice on how to structure your purchase we have a tax consultant who can provide advice.
Disbursements
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.
- HM Land Registry fee: The cost will be between £20 to £910. These fees vary and are based on the purchase price of the property. We can give you an accurate figure once we know the purchase price of the property.
- Search fees: The cost will be between £350 to £700. These fees vary due to where the property is located (for instance the local authority fees are different for each local authority and we may need to do a specific search for your property due to its location). We can give you an accurate figure once we have sight of your specific documents and know the location of your property
- VAT at 20% on search fees
- Electronic money transfer fee: £30 plus VAT (£36 total) for each same day CHAPS and £3 plus VAT (£3.60 total) for a three day BACS
- VAT at 20%
Anticipated 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 and £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 and £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 this we receive this information.
Stamp Duty Land Tax
This depends on the purchase price of your 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.
Stages of a Purchase
The precise stages involved in the purchase of a residential freehold and leasehold property vary according to the circumstances. The stages involved for buying a freehold or leasehold property and our scope of work includes:
- Taking your instructions and giving you initial advice
- Checking finances are in place to fund purchase and contact lender’s solicitors if needed
- Negotiating and agreeing the sale and purchase agreement
- Submitting searches in relation to the Property, reviewing the search results and raising additional enquiries where relevant
- Reviewing the seller’s title pack to the Property comprising title information, tenancy documentation and planning information
- Obtaining further planning documentation if required
- Reviewing the standard enquiries provided by the buyer and raising additional enquiries where relevant
- Preparing a report on all the documents and information received
- Going through the conditions of any mortgage offer
- Sending you the final contract for signature
- Drafting, negotiating and agreeing the form of transfer to the buyer
- Advising you on joint ownership
- Obtaining pre-completion searches
- Agreeing the 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 lender and you - Completing the purchase
- Dealing with the post completion formalities including:
- with input and authority from you, preparing and submitting the stamp duty land tax return and the stamp duty land tax due to HM Revenue & Customs
- submitting the Land Registry application in relation to the purchase of the property
- Arranging to serve a notice of assignment or a notice of charge on the landlord or managing agent
How long will my purchase take?
How long it will take from your offer being accepted until you can move in to your house will depend on a number of factors. The average process takes between 6-12 weeks. It can be quicker or slower, depending on the parties in the chain. For example, if you are a first time buyer, purchasing a new build property with a mortgage in principle, it could take 4 weeks to exchange. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 2 and 3 months to exchange. In such, a situation additional charges would apply.
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