Introductory note: The following information is an illustrative guide only and is not a quote or an estimate. Individual costs will depend on individual cases.
VAT: Where VAT is chargeable the rate will be in accordance with current tax rules https://www.gov.uk/vat-rates
Sale or purchase and remortgage – leasehold property
The illustrations given are for a property at the value of £250,000.
Purchase of a leasehold residential property
Our fees cover the anticipated 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.
Legal Fees
Legal fee from £1,750.00
VAT payable £350.00
Electronic money transfer fee £50.00
VAT payable £10.00
Fee for acting on behalf of the mortgage lender £0.00 normally inclusive but charges apply when third party or bridging finance.
Disbursements
Search fees £300.00
HM Land Registry fee £150.00
Estimated total £2,610.00
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. The list is not exhaustive and other disbursements may apply depending on the terms 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 £7.00
VAT on search fees £1.40
Anticipated leasehold disbursements:
Notice of transfer fee – this fee if chargeable is set out in the lease. Often the fee is between £50 - £100 plus VAT.
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 - £100 plus 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 £100 - £200 plus VAT.
Certificate of Compliance fee – To be confirmed upon receipt of the lease, and can range between £100 - £200.
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 the specific documents.
You should also be aware that ground rent and service charges 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. You can calculate the amount you will need to pay by using HMRC’s website or if the property is locates in Wales by using the Welsh Revenue Authority’s website.
Total £2,500.00
The precise stages involved in the purchase of a residential leasehold property vary according to the circumstances.
How long will my house purchase take?
How long it will take from you offer being accepted until you can move in to or out of your home will depend on a number of factors. The average process takes between 12-16 weeks. It can be quicker or slower, depending on the parties in the chain. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between x and x months. In such a situation, additional charges would apply.
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 the title which requires remedying prior to completion or the preparation of additional documents ancillary to the main transaction
- this is the assignment of an existing lease and is not the grant of a new lease
- 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
- the title is straightforward
- there is no element of Help to Buy in the transaction
- the property is not a new build
- no lease extension is required
- no third parties are providing funding
Sale of a leasehold residential property
Our fees cover all of the work required to complete the sale of your property
Legal fees and disbursements
Legal fee from £1,500.00
VAT payable £300.00
Land registry copy entries fees £12.00
Remortgage of a leasehold residential property
Legal fee from £900.00
VAT payable £180.00
Any other disbursements including search fees, HM Land Registry fees, Electronic money transfer fee and VAT will form part of a detailed individual estimate to be sent to you once we have further information about the value and nature of the remortgage.