Costs Information for Residential Conveyancing

Example 2: Purchase of a leasehold residential property based on a purchase at £400,000

Our fees cover all 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 (Stamp Duty) if the property is in England, or Land Transaction Tax (Land Tax) if the property is in Wales.

Conveyancer’s fees and disbursements

• Legal fee £1,095
• Completion of SDLT return £50
• Acting on a leasehold £199
• Acting for the mortgage lender £199 (high street lenders only)
• Electronic money transfer fee £30
• VAT £314.60
• Subtotal £1,887.60
  

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.

• Search fees £300 (estimate and based on a regulated search)
• AML/KYC search (pp) £9.60 incl VAT
• Land Charges Search (pp) £3.60 incl VAT
• Online SDLT submission £7.20 incl VAT
• Leasehold administration fee £150 incl VAT (estimate)
• Land Registry Search £4.20 incl VAT
• HM Land Registry fee £156 incl VAT
• Subtotal £630.60

Estimated total £2,518.20      (excluding Stamp Duty Land Tax –below)

Estimated Leasehold administration fees^*

• Notice of Transfer fee – This fee if chargeable as prescribed in the leasehold pack or as set out in the lease. Often the fee is between £48 – £120.
• Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease. Often the fee is between £48 – £120.
• 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 £0 – £120.
• Certificate of Compliance fee – To be confirmed upon receipt of the lease, as can range between £120 – £300.

*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.

Estimated SDLT (assume individual UK resident, 1st property, first time buyer @ £400,000)      £0

NB. The SDLT might be substantially more than this if these assumptions do not apply

Estimated total including SDLT             £2,518.20

(This is intended to give clients a clear understanding of the total cost of the transaction and therefore to budget for the total costs the client will need to complete it. However we recommend that you contact us to obtain a worked example based on your individual circumstances and the purchase price which affects the Stamp Duty Land Tax)

The precise stages involved in the purchase of a residential leasehold property vary according to the circumstances. However, below we have suggested some key stages that you may wish to include:

• Take your instructions and give you initial advice
• Check finances are in place to fund purchase and contact lender’s solicitors if needed
• Receive and advise on contract documents
• Carry out searches
• Obtain further planning documentation if required
• Make any necessary enquiries of seller’s solicitor
• Give you advice on all documents and information received
• Go through conditions of mortgage offer
• Send final contract to you for signature
• Draft Transfer
• Advise you on joint ownership
• Obtain pre-completion searches
• Agree completion date (date from which you own the property)
• 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 Leasehold administration and pay fee
• Deal with application for registration at Land Registry

How long will my leasehold 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 about 8 weeks from the point of making your offer to exchange of contracts with completion about 10-14 days thereafter

It can be quicker or slower, depending on the parties in the chain. For example, if you are a first-time buyer purchasing a vacant freehold property with a mortgage agreed, it could take 6-8 weeks. However, if you are buying a leasehold property that needs an extension of the lease, this can take significantly longer, between 2-4 months. In such a situation additional charges may 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 the assignment of an existing lease and is not the grant or extension of a new lease

c)    the transaction is concluded in a timely manner and no unforeseen complication arise

d)    all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation

e)    no indemnity policies are required. Additional disbursements may apply if indemnity policies are required.