PURCHASE COSTS OF A LEASEHOLD RESIDENTIAL PROPERTY EXPLAINED

Our fees cover all of the work* required to complete the purchase of your new 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 is in Wales.

 

Conveyancer’s legal fees:
Below is a range of the fees that we may typically charge for a leasehold purchase (all charges include VAT at 20%):

  • Legal fees: between £780 and £2,040* (depending upon the value/location of the property and the complexity of the case)
  • Search fees: between £200 and £350 (depending upon the searches required)
  • Electronic money transfer fee: £36
  • Estimated total: between a subtotal of £1,016 and £2,426

*Our fees assume that:

  1. it 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
  2. this is the assignment of an existing lease and is not the grant of a new lease
  3. the transaction is concluded in a timely manner and no unforeseen complications arise
  4. all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
  5. no indemnity policies are required (additional disbursements may apply if indemnity policies are required)

 

Disbursements:
These are costs related to your matter that are payable to third parties, such as Land Registry 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 lease. We will update you on the specific fees upon receipt and review of the lease from the seller’s solicitors.

 

Estimated Leasehold Disbursements:

  • Notice of Transfer fee – this fee, if chargeable, is set out in the lease. Often the fee is between £50 and £250
  • 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 £250
  • 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 £50 and £250
  • Certificate of Compliance fee – to be confirmed upon receipt of the lease, and can range between £50 and £250

The fees above 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. Please note that these fees are not charged by us but by the Landlord or the Managing Agents of the leasehold property.

You should also be aware that ground rent and service charges are likely to apply throughout your ownership of the property. Ground rent is typically between £50 and £250 per year. Service charges can vary greatly but could be between £500 a year for a modest development and £1,500 or more a year for larger developments with communal facilities. We will confirm the ground rent and the anticipated service charge as soon as we receive this information, although the Estate Agents should be able to give you an indication of these from the outset. It is important that you budget accordingly.

You will also pay the following standard disbursements:

  • Stamp Duty Land Tax in England or Land Tax in Wales
  • You can calculate how much Stamp Duty Land Tax or Land Transaction Tax that you need to pay by visiting the websites below:

English Stamp Duty:

Welsh Land Tax:

Land Registry Fees:

  • You will have to pay a fee to the Land Registry to register the property in your name. The amount you pay to the Land Registry will depend upon the value of the property. You can calculate the fee using the link below:

 

Example of fees:
Below is a specific example of a purchase quotation, where the buyer is not a First Time Buyer but not a Buy to Let Investor, buying a leasehold property for £200,000 with a mortgage, and using our usual search pack and dealing with our Coventry office (all calculations include applicable VAT at 20%):

Leasehold Purchase at: £200,000.00
Telegraphic Transfer Fee £36.00
Legal Fees £870.00
Land Registry Fee £95.00
Stamp Duty £1,500.00
Search Fees £250.00
Total £2,751.00

There will also be the following additional disbursements to consider (charged by the Landlord/Managing Agents):

LEASEHOLD EXAMPLE DISBURSEMENTS:
Notice fees £50.00
Deed of Covenant & Certificate of Compliance Fees £125.00
Total £175.00
  • the legal fees for properties worth in excess of £1m are to be determined on a case by case basis and you will need to call our offices for a quotation
  • we will always supply you with a quotation and agree a fee with you before commencing work
  • if additional fees are to be charged details will be provided if and when they arise and we will agree any additional legal fees with you first

 

How long will my leasehold purchase take?:
How long it will take from your offer being accepted until you can collect the keys to your property will depend on a number of factors. The average process can take up to 16 weeks. It can be quicker or slower, depending on the parties in the chain. For example, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, up to 6 months. In such circumstances additional charges may apply.

 

Stages of the process:
The precise stages involved in the purchase of a residential leasehold property vary according to the circumstances. However, below are some of the key stages:

  • Take your instructions and give you initial advice
  • Check finances are in place to fund your 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 the seller’s solicitor
  • Give you advice on all documents and information received
  • Go through the conditions of your mortgage offer
  • Send the final contract to you for signature
  • Draft the Transfer
  • Advise you on joint ownership
  • Obtain pre-completion searches
  • Agree a completion date (the 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 you and your lender
  • Complete your purchase
  • Deal with payment of Stamp Duty/Land Tax
  • Deal with application for registration at the Land Registry
  • Deal with registering the transaction with the Landlord/Managing Agents

Please call our offices for a Conveyancing quote on 0800 158 5592