Estimated Residential Property Purchase Fees
To provide you with an indication of our fees, we have provided the following examples of a purchase of a freehold residential property, and of a leasehold residential property below.
Purchase of a freehold residential property
Our fees cover all of 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 (SDLT) if the property is in England, or Land Transaction Tax (LTT) if the property you wish to buy is in Wales.
Our conveyancing fees and disbursements based on a purchase of a freehold house in Eastbourne, which is not a ‘new build’ property; at a price of £275,000.00 for joint purchasers who are replacing their main residence:
- Legal fee £950.00 (plus VAT)
- Mortgage payment fee £100.00 (plus VAT)
- Search fees £400.00 (including VAT)
- HM Land Registry fee £150.00
- Fee for acting on behalf of the mortgage lender £50.00 (plus VAT)
- Electronic money transfer fee £45.00 per transfer (plus VAT)
- AML Search fee £15.00 per person (plus VAT)
- VAT payable £301.67
Estimated total: £1,960.00
This estimate is based upon a joint purchase (i.e. two people) and a single electronic money transfer as part of the transaction. Search fees are estimated as they are specific to each property.
Disbursements are costs related to your matter that are payable to third parties, such as Search fees and Land Registry fees. We handle the payment of the disbursements on your behalf, to ensure a smoother process.
Stamp Duty Land Tax or Land Transaction Tax when buying a freehold property
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. The SDLT payable in this example is £1,250.00.
Based on the figure above for estimated total fees and disbursements of £1,960.00; and when adding the SDLT of £1,250.00, the final estimated total would be £3,210.00.
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 6 to 8 weeks to reach the point of exchange. The completion date, and the time between exchange and completion, is something which is mutually agreed between all parties in the chain. It is usual to have 2 to 3 weeks between exchange and completion – but this can be a shorter period, or a longer one.
It can be quicker or slower, depending upon 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 4 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 4 and 6 months. In such a situation, additional charges would apply.
Stages of the process
The precise stages involved in the purchase of a residential property vary according to the circumstances. However, some key stages are listed below, and include:
- 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 mortgage offer with you
- Send final contract to you for signature
- 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 SDLT/LTT
- Deal with application for registration at Land Registry
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 (SDLT) if the property is in England, or Land Transaction Tax (LTT) if the property is in Wales.
Our conveyancing fees and disbursements based on a purchase of a leasehold flat in Eastbourne, that is not a ‘new build’ property, at a price of £275,000.00 for joint purchasers who are replacing their main residence:
- Legal fee £950.00 (plus VAT)
- Lease £500.00 (plus VAT)
- Mortgage payment fee £100.00 (plus VAT)
- Fee for acting on behalf of the mortgage lender £50.00 (plus VAT)
- Search fees £400.00 (including VAT)
- HM Land Registry fee £150.00
- Electronic money transfer fee £45.00 per transfer (plus VAT)
- AML Search fee £15.00 per person (plus VAT)
- VAT payable £401.67
Estimated total: £2,560.00
This estimate is based upon a joint purchase (i.e. two people) and a single electronic money transfer as part of the transaction. Search fees are estimated as they are specific to each property.
Disbursements are costs related to your matter that are payable to third parties, such as Search Fees and 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 terms 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 £150.00 – £300.00 plus VAT
- Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease. Often this is incorporated within the Notice of Transfer fee but if not is likely to match the Notice of Transfer fee
- 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 £200.00 and £400.00 plus VAT
- Certificate of Compliance fee – To be confirmed upon receipt of the lease, as can range between £100.00 and £200.00 plus VAT
**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 charges are likely to apply throughout your ownership of the property. We will confirm the ground rent and the anticipated service charges as soon as we receive this information.
Stamp Duty Land Tax or Land Transaction Tax when buying a Leasehold Property
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.
Based on the figure above for estimated total fees and disbursements of £2,560.00; and when adding the SDLT of £1,250.00, the final estimated total would be £3,810.00.
The precise stages involved in the purchase of a residential leasehold property vary according to the circumstances. However, some key stages are listed below, and include:
- 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 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 SDLT/LTT
- Deal with 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 in to your house, will depend on a number of factors. The average process takes between 10 – 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 leasehold property with a mortgage in principle, it could take 8 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 4 and 6 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 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
There are various factors which affect our fees. These include:
- Value of the property
- First-time buyer
- Re-mortgage
- Freehold or leasehold
- New build
- First registration of title
- Whether a mortgage or not, or Islamic mortgage
- In purchase cases, whether primary residence, buy to let or second/holiday home
- Multiple owners
- Shared ownership scheme
- Using a help to buy scheme, and whether it is an equity loan or ISA
- Purchase under right to buy
- Purchase at auction
- Property has been repossessed
You will appreciate from the information above, that it is difficult to provide you with the information in written form to give you an exact quotation, as there are many factors which will affect the costs.
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For a personalised, no obligation quote please contact us on 01323 727321 or complete the contact form below.
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Our aim is always to provide information to you in a clear, transparent and easy to understand manner. However, should you have any queries or would like to speak to someone in person, please contact us and we will be happy to help.
Please note the above is for information purposes only and is intended to be a short summary. It should not be treated as a comprehensive guide and should not be acted on without qualified legal advice.