Leasehold Purchase Pricing

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:

Legal fee £970.00
VAT@20% £194.00
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
VAT@20% £8.00
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
ESTIMATED TOTAL £2,332.00

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

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:

  • 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 (Preliminary Report)
  • checking all lease provisions and formalities
  • carrying out searches and advising on them (Search Report)
  • obtaining further documentation, if required, such as planning, title, etc.
  • making any necessary enquiries of the seller’s solicitor and checking responses
  • giving you advice on all documents and information received (Final Report)
  • going through the conditions of the mortgage offer with you (Mortgage Report)
  • sending the final contract to you for signature
  • drafting the Transfer and arranging for you to sign
  • obtaining pre-completion searches
  • agreeing on 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 the lender and you
  • completing the purchase
  • dealing with payment of Stamp Duty Land Tax
  • dealing with leasehold formalities
  • dealing with the application for registration at Land Registry

Our fee assumes that:

  • this is the assignment of an existing lease and not the grant of a new lease
  • 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
  • the transaction is concluded in a timely 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.
  • No lease extension or variation is required

Below is a list of the types of things for which we charge more:

  • new build
  • first registration of title
  • multiple owners
  • shared ownership scheme
  • using a help to buy scheme, and whether it is an equity loan or ISA
  • property has been repossessed
  • listed building
  • communal areas involving a management company/service charge/restriction
  • leasehold properties
  • solar panels
  • purchase of part only
  • mortgage disclosures
  • indemnity insurance
  • boundary issues/missing land

NB: This list is not intended to be exhaustive.

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