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Leasehold Residential Property

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Buying and selling a property can be a stressful process.  Whether you are a first-time buyer or a seasoned property investor, we seek to minimise any stress by working to ensure that the transaction proceeds as smoothly as possible.  In some cases, there may of course be genuine issues and problems which require special consideration; this is when genuine experience and expertise become important. 

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Our Senior Partner, Pamela Clemo, has over 30 years of experience in residential conveyancing  and handles all conveyancing matters for the firm.  You can therefore rest assured that your matter is being undertaken by a highly experienced professional at all times.

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FEES

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Our fees cover all the work required to complete the transaction.  On a purchase, this will include dealing with registration of the property at the Land Registry and dealing with the payment of Stamp Duty Land Tax (SDLT). Each transaction is different, meaning that we will provide a personalised estimate based upon the specific characteristics of the transaction. 

 

As a general guide only, our fees are likely to range form from £1,250 +VAT to £10,500 +VAT for high-price properties. In addition we charge a fee of £90 +VAT for drafting and submitting the Stamp Duty Land Tax return, where necessary, a fee of £30 +VAT for arranging the transfer of monies on completion through the banking system and a £10 +VAT (for each buyer) for an electronic ID check)

 

In addition to legal fees, transactions also typically involve certain disbursements.  These costs often relate to payments due to third parties, such as local authority search fees on a purchase. We handle the payment of the disbursements on your behalf, subject to reimbursement. Typical examples in any property purchase are;

 

• Local Authority Search (price varies depending upon the local authority and scope of the search; we can give details of current costs at the outset)

• Drainage and water search

• Environmental Searches

• Indemnity policies (where applicable)

• Index Map Search

• Bankruptcy Search

• Land Registry (pre-completion) Search

• HMLR (Land Registry) fees, based upon the price of the property

• General office disbursements (£30 + VAT)

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Additional disbursements applicable to leasehold purchases include:

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• Notice of Transfer fee (as set out in the lease)

• Notice of Charge fee (if property is to be mortgaged, as set out in the lease)

• Deed of Covenant fee payable to the management company

• Certificate of Compliance fee

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In addition to these transaction-related fees, you should also be aware that ground rent and service charges are also likely to apply throughout your ownership of the property. We will confirm the current ground rent, its escalation over time, and details about anticipated service charges when this information is made available to us.

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STAMP DUTY LAND TAX (SDLT)

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SDLT may be payable on a property purchase depending upon its value. SDLT rates are set by the government and change over time.  The amount of SDLT due on a straightforward transaction can be calculated using the government’s online calculator, available on the HMRC's website.

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EXCLUSIONS

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Please note that we do not provide tax or financial advice.  Where you feel you need such advice, you will need to make such arrangements with a provider of your choice. We have no referral or other relationships with third-party firms and receive no remuneration for arranging indemnity insurance on your behalf.

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Our initial fees for a typical transaction are fixed, however, in some circumstances, matters may arise which were unforeseen or could not be quantified at the outset.  Dealing with and resolving such matters would typically increase the original fees estimate. Where there is likely to be additional fees, we will  inform you as soon as they become apparent, also providing an indication of that those extra costs are likely to be and how they are charged.  While we will often again provide a fixed fee to cover the additional work, it may be necessary in some cases to charge at an hourly rate of £250 +VAT.

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EXAMPLES OF MATTERS LIKVELY TO LEAD TO AN INCREAS IN FEES INCLUDE:

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• If a legal title or the lease is defective or part of the property is unregistered

• If you discover building regulations or planning permission has not been obtained

• If crucial documents, we have previously requested from you have not been provided to us

• If the property is a new build

• If the property is less than 10 years old

• If you require exchange within 6 weeks of instructing us

• If you require completion within 6 weeks of instructing us

• If you require simultaneous exchange and completion

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TIME SCALES

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While it is always hoped that matters will proceed smoothly without complication, enabling the transaction to be completed in a relatively short period of time (typically 12-16 weeks), a number of factors can affect the speed with which the matter progresses.  Such factors can include:

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• Number of parties in the chain

• Whether you have a mortgage in place or need to arrange financing

• Whether you are buying a new build property

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It is important to understand that in any transaction that there is at least one other party involved (typically the solicitors acting for your buyer or seller).  If you are a buyer, your seller may have their own purchase transaction to complete.  This is then likely to create linked transactions forming a chain as it is often the case that a seller wishes to ensure that they complete the purchase of their new property at the same time as they complete the sale of their old.  When this is the case, matters need to be arranged within a timescale which accommodates and is agreed by all parties.  This typically extends the period from your instructions to the completion of your own matter.

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OUR FEE ESTIMATES ASSUME THAT:

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• This is a standard transaction and that no unforeseen matters arise, including (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 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 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

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KEY MILESTONES

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With every transaction there are key milestones, which may vary according to individual circumstances. They may be as follows:

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• Taking your instructions and giving you initial advice

• Checking that all finances are in place to fund your purchase and contacting lender's solicitors if the lender is separately represented

• Receiving and advising on contract documents

• Carrying out searches

• Obtaining further planning documentation if required

• Making any necessary enquiries of seller's solicitor

• Giving you advice on all documents and information received, including the lease

• Going through the conditions of your mortgage offer

• Sending the final contract to you for signature

• Approving the draft Transfer

• Advising you on joint ownership (if applicable)

• Obtaining pre-completion searches

• Agreeing a completion date (the date on which the transaction is completed and you are required to vacate your existing property, as a seller, and can move into your new property as a buyer)

• Exchanging contracts and notifying you that this has happened

• Arranging for all monies to be received from any lender (where we are acting on their behalf)

• Completing your purchase

• Completing the Stamp Duty Land Tax return and paying Stamp Duty Land Tax on your behalf, subject to your provision of funds for this purpose

• Completing and submitting an application for registration at the Land Registry