Conveyancing: Purchase of a leasehold residential property
Our fees cover all of the work required to complete the purchase of your leasehold property, 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.
Our fees for a typical flat purchase range from around £970 for a simple transaction to around £6,000 for a substantial historic converted building on unregistered land. These figures may, however, vary in cases with special complications. That is why we will always give you an individual cost estimate at the start of the transaction, taking into account the actual features of your purchase. We will always advise you immediately about any complication, and discuss the potential impact on the price before any additional charges are incurred.
Here is an example of a costs estimate for our conveyancing fees and disbursements for a leasehold purchase (existing registered lease) at £150,000 for an individual purchaser buying with a mortgage:
|Search fees (approximately)||£275.00|
|HM Land Registry fee||£40.00|
|HM Land Registry search fee||£3.00|
|Land Charges search fee||£2.00|
|Costs in connection with an electronic money transfer fee||£40.00|
|SDLT at the standard rate (no reliefs or surcharges)||£500.00|
|Subtotal for this section||£2,032.00|
Fees relating specifically to leasehold property:
|Notice of Transfer fee (this fee if chargeable is set out in the lease. Often the fee is between £50 and £150) (approx.)||£75.00|
|Notice of Charge fee (this fee if chargeable is set out in the lease. Often the fee is between £50 and £150) (approx.)||£75.00|
|Deed of Covenant fee (this fee is provided by the landlord/ management company for the property and can be difficult to estimate. Often the fee is between £50 and £150 (approx.)||£75.00|
|Certificate of compliance fee (this fee is provided by the landlord/ management company for the property and can be difficult to estimate. Often the fee is between £50 and £150 (approx.)||£75.00|
|Estimated sub-total for this section||£300.00|
Fees relating specifically to leasehold property vary from property to property and can on occasion be significantly more than the ranges given above. We have used an average approximate fees in our example above. We can give an accurate figure once we receive your specific documents.
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 above. 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.
Ground rent and service charge
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 or Land Tax (on purchase)
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.
How long will my house purchase take?
The timing of each transaction will vary. The purchase of a property in a chain will on average complete within 8 to 10 weeks from receipt of the contract papers from the seller’s solicitors. Whether or not this is achievable will depend on a number of factors, some of which will be outside of our control, such as receipt of searches, mortgage offer (if appropriate), the seller’s satisfactory replies to enquiries, resolution of title issues, and general co-operation by the seller, the seller’s solicitor and other parties in the chain. It will become clear as the matter proceeds whether this timescale will be achievable, and a flexible approach by all is important. If a lease extension is required, your purchase could take significantly longer, on average an additional 4 to 8 weeks.
Stages of the process
The precise stages involved in the purchase of a residential property vary according to the circumstances, however, some of the key stages are:
Our fee assumes that:
Below is a list of the types of things for which we charge more:
NB: This list is not intended to be exhaustive.