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 (SDLT).

A leasehold transaction involves more work than a freehold transaction as it is often necessary to liaise with the Landlord, Managing Agent and any Management Company to obtain information about ground rents and service charges and to request any consents that may be required before the lease can be sold. In addition, the Lease must be reviewed in full to check that it is acceptable and that it meets the expectations of you and any lender.

 

Conveyancer’s fees and disbursements

  • Legal fee: Please refer to our table of legal fees below.
  • VAT payable on legal fees: Please refer to our table of legal fees below.
  • For acting on behalf of the mortgage lender: £120 (inclusive of VAT) or the amount stated in your mortgage offer (if higher).
  • Pre-exchange Search fees (standard pack): £171 (no VAT)
  • Pre-completion bankruptcy searches (if required): £2 per search (no VAT).
  • Pre-completion Land Registry search: £3 per search (no VAT).
  • HM Land Registry fee: Please refer to our table of Land Registry Fees below.
  • Electronic money transfer fee £36 (inclusive of VAT).

A tailored fee quote will be provided to you on application.
*Our fee assumes that:

  • 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.
  • this is the purchase of the whole of an existing registered property and not a new build property.
  • the transaction is concluded in a timely manner and no unforeseen complication 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.

Please view our What is included information sheet to let you know the services that are included in the above fees.  Please view our What is not included information sheet to let you know some of the issues that may arise and that will attract an additional fee. Please note that this is not an exhaustive list and prices may vary depending on the complexity of the transaction or the issue that has arisen.

Unless otherwise stated, additional work will be billed in accordance with the Conveyancer’s hourly rates.

 

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 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.

Anticipated Disbursements**

  • Notice of Transfer fee – This fee (if chargeable) is set out in the lease. Often the fee is between £60 and £180 (inclusive of VAT).
  • Notice of Charge fee (if the property is to be mortgaged) – This fee (if chargeable) is set out in the lease. Often the fee is between £60 and £180 (inclusive of VAT).
  • 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 £180 and £420 (inclusive of VAT).
  • Certificate of Compliance fee – To be confirmed upon receipt of the lease, as can range between £60 and £250 (inclusive of VAT).

**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 and the management information pack.

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

This depends on the purchase price of your property and your particular circumstances. You can calculate the amount you may need to pay by using HMRC’s website for properties located in England. This will give you an indication of the tax you will need to pay but we will confirm the figure to you in due course, as some transactions involve complex stamp duty land tax.

 

How long will my house 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 8 and 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 contracts, but with a delayed completion date while the house or flat is being built. 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. In such, a situation additional charges would apply.

 

Stages of the process

The precise stages involved in the purchase of a residential leasehold property vary according to the circumstances. However, the stages listed below occur in a typical leasehold purchase transaction:

  • Take your instructions and give you initial advice
  • Check finances are in place to fund purchase and contact lender if needed
  • Receive and advise on contract documents
  • Carry out searches
  • Obtain further planning documentation if required
  • Receive and advise on management information pack
  • Make any necessary enquiries of seller’s solicitor
  • Give you advice on all documents and information received
  • Go through conditions of mortgage offer with you
  • Draft Transfer and any required deed of covenant
  • Send final contract and transfer to you for signature
  • Advise you on joint ownership
  • Obtain pre-completion searches
  • Agree completion date (date from which you own the property)
  • Agree apportionments of rent and service charge
  • Exchange contracts and notify you that this has happened
  • Arrange for all monies needed to be received from lender and you
  • Complete purchase
  • Deal with payment of Stamp Duty Land Tax
  • Deal with application for registration at Land Registry
  • Deal with sending notice of transfer and mortgage to the Landlord/ Management Company.

Table of Fees