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Our fees: Purchase of a leasehold residential property

Please note our fees are subject to VAT, this tax is set by the UK government and is currently 20%.

Purchase of a leasehold residential property

Our fixed fees cover all of the work* outlined in the ‘stages of the process’ text below, these steps are what is 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 you wish to buy is in Wales.

Our fixed fees are based on the price or value of the property as set out in the table below:

Property price FEE £ VAT £ TOTAL £
Up to £179,999 900 180 1080
Up to £200,000 1000 200 1200
Up to £250,000 1050 210 1260
Up to £350,000 1150 230 1380
Up to £450,000 1250 250 1500
Up to £550,000 1300 260 1560
Up to £650,000 1350 270 1620
Up to £1 million 1600 320 1920
Over £1 million 0.25%

Example

To purchase a property for £150,000 our fees would be £900 excluding VAT.

Purchase of a new build property

If the property you are purchasing is a new build property the following fees apply instead of those above:

Purchase price FEE £ VAT £ TOTAL £
Up to £179,999 1000 200 1200
Up to £200,000 1100 220 1320
Up to £250,000 1150 230 1380
Up to £350,000 1250 250 1500
Up to £450,000 1350 270 1620
Up to £550,000 1400 280 1680
Up to £650,000 1450 290 1740
Up to £1 million 1700 340 2040
Over £1 million 0.25%

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 or where it is situated e.g. if the property is in Darras Hall a pack will need to be obtained from the Darras Hall Committee detailing further information about the property.

Sometimes we may pay a referral fee on your behalf. We will always inform you in writing what this fee is. A typical fee is £120.

In certain circumstances additional fees are chargeable which are outlined below:

Item Amount £ VAT £ Total £
ISA or LISA Help to Buy 50 10 60
Government Help to Buy Scheme 200 40 240
Purchasing under auction conditions 100 20 120
Buying residential property through a business/company 200 40 240
Living Spaces referrals 100 20 120
Shared Ownership 150 30 180
Gifted deposits 50 10 60
Mortgages with Paragon Bank 1000 200 1200
SDLT admin fee 40 8 48
Payment admin fee (TT) 25 5 30
Foreign funds admin fee for investigation of source of funds outside the EU/UK 50 10 60

Example

To purchase a leasehold property at £150,000, the following will apply (including no extra fees as set out above or referral fees):

Legal Fees £900.00
VAT £180.00
Disbursements:

 

Search fees (standard package) £144.90  Including VAT
HM Land Registry fee £100.00 This is based upon the property value or price paid and is shown at

http://landregistry.data.gov.uk/fees-calculator.html

VAT is not applicable

Land Registry search £3.00 VAT is not applicable
Bankruptcy searches £2.00 (per buyer) VAT is not applicable
Stamp duty return fee £48.00 Including VAT
Mortgage lender panel fee £30.00 (not always applicable) Including VAT
Total £1407.90 Please note this does not include Stamp Duty or additional leasehold disbursements (discussed below)

With a leasehold property there is also likely to be specific additional disbursements which will vary from property to property and can on occasion be significantly more than the ranges given below. 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.

These additional disbursements can include:

  • Notice of Transfer fee – This fee if chargeable is set out in the lease. Often the fee is £60.00 – £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 £60.00 – £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 £160.00 – £300.00.
  • Certificate of Compliance fee – To be confirmed upon receipt of the lease, and can be £160.00 – £400.00.

Stamp Duty or Land Tax (on purchase)

This depends on the purchase price of your property and your personal circumstances. 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 here.

Mortgage Lending Panel

A payment of £30 plus £6 VAT is payable with mortgages from the following lenders:

  • Virgin Money
  • Leeds Building Society
  • Tesco
  • Newcastle
  • Tipton
  • West Brom
  • Nationwide
  • Metrobank
  • TSB
  • Accord
  • Nationwide
  • Post Office
  • Bank of Ireland

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, many of which are out of our control. The average process takes between 8-12 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 12 weeks.

If you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 2 and 6 months. In such a situation additional charges would apply, which would discussed with you. 

Stages of the process

The precise stages involved in the purchase of a residential property vary according to the circumstances. Our work usually includes the following:

  • Taking your instructions and give you initial advice
  • Checking finances are in place to fund purchase and contact lender’s solicitors if needed
  • 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
  • Going through conditions of any mortgage offer with you
  • Sending final contract to you for signature
  • Agreeing completion date (date from which you own the property)
  • Exchanging contracts and notifying you that this has happened
  • Arranging for all monies needed to be received from lender and you
  • Completing the purchase
  • Dealing with payment of Stamp Duty/Land Tax
  • Dealing with an application for registration at Land Registry

 * Assumptions:

  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. The transaction is concluded in a timely manner and no unforeseen complication arise
  3. All parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
  4. No indemnity policies are required. Additional disbursements may apply if indemnity policies are required.

Extra fees (not included in the above quote) may be added if any of the following apply to your case:

  • electronic money transfer fee (£30)
  • first registration of title
  • whether a mortgage or not, or Islamic mortgage
  • in purchase cases, whether it is your 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

Property work will be undertaken by our property team displayed below, all team members are supervised by Cliff Veitch.

Our Team

Cliff Veitch

Cliff Veitch

Partner

Anne Austin

Anne Austin

Solicitor

Nicola Fisher

Nicola Fisher

Solicitor

Eleanor Pullen

Eleanor Pullen

Solicitor

Kay Potts

Kay Potts

Conveyancer

Winnie Common

Winnie Common

Conveyancer

Profile fallback image

Euan Osborne

Paralegal

Matthew Smith

Matthew Smith

Senior Associate Solicitor

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