Leasehold Purchase

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, this will be as per the developer’s time scale. We will keep you informed of progress throughout, explain the reasons for any delays and advise you if any additional unforeseen work becomes necessary.

However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 3 and 5 months. In such, a situation additional charges would apply

Stages of the process

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

Take your instructions and give you our initial advice
Check your finances are in place to fund the purchase and contact the lender’s solicitors if needed
Receive and advise on the 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 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 application for registration at Land Registry

How much will it cost?

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.

An example of our fees based on a direct leasehold purchase transaction, in Bridlington at a purchase price of £125,000 with no mortgage would cost: –

Conveyancer’s fees & Disbursements

Legal fee: £1200.00 (+ VAT of £240.00)
Search fees: £348.00
HM Land Registry fee – this is worked out based on the purchase price of the property you are purchasing. You can work out the amount you will have to pay by using the Land Registry website here https://www.gov.uk/guidance/hm-land-registry-registration-services-fees#scale-1-fees
Electronic money transfer fee: £30.00* (+VAT of £8.00)
Identification Fee: £35.00 (+ VAT of 7.00)

Stamp Duty Return Fee: £75.00 (+ VAT of £15.00)
Case Management Fee: £30.00 (+ VAT of £6.00)
Archive Fee: £30.00 (+ VAT of £6.00)
Postage and Copying Fee: £30.00 (+VAT of £6.00)
Final Searches: £44.00

Subtotal:£1,822.00 (before VAT)

Estimated total: £2,110.00 (inc VAT)

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 and £200.00.
Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease. Often the fee is between £50.00 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 £120.00 and £300.00.
Certificate of Compliance fee – To be confirmed upon receipt of the lease, as can range between £120.00 and £300.00.

**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 https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro or if the property is located in Wales by using the Welsh Revenue Authority’s website here https://lttcalculator.wra.gov.wales/ChargeableTransactionType.

Our fee assumes that:

1
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
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 complication 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.