Purchase of Leasehold Residential Property

PURCHASE OF A LEASEHOLD RESIDENTIAL PROPERTY

Purchase of a leasehold residential property

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 £1,250.00 – £1,500.00 (+VAT)

• Search fees £460.11 (inclusive of VAT) however the search fees vary according to local authority and search provider.

• HM Land Registry fee;

Land registry fees for registration of a transfer of registered land vary according to the price paid for the property. For a registered property valued at £200,001.00 – £500,000.00 the registration fee will be £135.00. For a property valued at £500,001.00 – £1,000,000.00 the Land Registry fee for registration will be £270.00.

• Electronic money transfer fee £40.00

Estimated total: £2,135.11. This estimate is based upon the purchase of a leasehold registered property in the London Borough of Ealing where the whole of the registered title is being purchased and the searches undertaken are Local Authority Search (including LLC1), Drainage & Water search, Chancel search, Highways search and Environmental search.

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 £50.00 – £100.00

• Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease. Often the fee is between £100.00 and £200.00.

• 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 £100.00 and £200.00.

• Certificate of Compliance fee – To be confirmed upon receipt of the lease, as can range between £100.00 and £200.00.

*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.

Stages of the process

The precise stages involved in the purchase of a residential leasehold property vary according to the circumstances. However, the key stages which are included in our estimate of costs above are:

• 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 the mortgage offer

• Send final contract to you for signature

• Draft Transfer

• Advise you on joint ownership

• Obtain pre-completion searches

• Agree on 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 the lender and you

• Complete purchase

• Deal with payment of Stamp Duty/Land Tax

• Deal with the application for registration at Land Registry

How long will my house purchase take?

How long it will take from your offer being accepted until you can move into 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 10 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 3 and 4 months. In such, a situation additional charges would 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 of a new lease

c. the transaction is concluded in a timely manner and no unforeseen complication arises

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.