Sale of a Freehold or Leasehold Residential Property
FEE SCALE
The following scale of fees is inclusive of all legal work required to complete the sale of a standard transaction for single residential property (freehold or leasehold).
A member of our Real Estate Team will be pleased to discuss your requirements.
Legal Fees
As with all legal transactions, fees will vary depending on price and complexity.
As a general rule our base fee will be 0.25% of sale price subject to a minimum of £1,500.00 in relation to freehold sales and £1,750.00 in relation to leasehold sales.
VAT currently at the rate of 20% will be payable on our fees. Certain disbursements (see below) will also attract VAT at the 20% rate. A member of our Real Estate Team can advise you where we are required to charge VAT.
Please note that if at any stage of a transaction our instructions are changed or a matter arises which adds to the complexity of a transaction then we reserve the right to increase our fees accordingly.
Standard Transactions
The amount of work and therefore time that we may be required to undertake in any legal transaction can vary widely. Unforeseen circumstances may arise, perhaps a defect in title or maybe an error in a lease which needs to be rectified; there may be a long and complex chain that needs to be coordinated. Matters such as these can effect any transaction and therefore take the same outside of our definition of a standard transaction.
Freehold sale / Leasehold sale
There is often considerably more work involved in the sale of a leasehold property (as opposed to the sale of a freehold). Landlord’s consent may be required for the sale of a leasehold property therefore requiring applications to be made and additional documents (by way of example a Licence to Assign) entered into between landlord, seller and buyer. For overseas buyers it is not uncommon for landlords to require a Rent Deposit or a Guarantee.
Disbursements
Disbursements are costs related to a legal transaction that are payable to third parties, such as, in the context of a real estate transaction, Land Registry fees or fees payable to a Managing Agent. The payment of these disbursements will be handled by us on your behalf and we will normally require cover for those costs before paying out the same.
We will provide you with a full list of expected disbursements at the commencement of your transaction and keep you informed of any additional disbursements during the course of your sale.
The following is a non-exhaustive list of those disbursements that are commonly incurred during the sale of a residential property:
Type of disbursement or other cost
Usual cost (as at January 2019)
Usual cost (as at January 2019)
Land Registry
(by way of example the cost of obtaining official copies of title documents)
£6.00 plus VAT for copies of title registers and plan (per title).
Electronic money transfer fee
(or CHAPS fee)
£35.00 plus VAT.
Management pack
Landlord or Managing Agent fees vary, typically between £150.00 - £500 plus VAT
How long with the sale take?
This depends upon a number of factors including in particular:-
- The length of any chain of transactions.
- The time it takes to obtain management information.
- The time it takes a buyer to obtain a mortgage offer and the results of relevant property
On average, the process takes around 9-16 weeks from the date of the acceptance of the offer.
Stages of the process
The key stages of a standard transaction:
- Obtaining instructions and providing initial advice.
- Undertaking regulatory checks including checking your identity.
- Preparing and submitting draft contract and supporting documentation.
- Responding to enquiries raised by the buyer’s solicitor.
- Negotiating the contract.
- Obtaining your signature on the agreed sale contract.
- Agreeing a completion date.
- Exchanging contracts and notifying you that this has happened.
- Submitting a completion statement with apportionments of ground rent and service charges (if leasehold) to the buyer’s solicitors.
- Completing the transaction by receiving all monies from the buyer and distributing those monies as required including redeeming any existing mortgage, paying the estate agent and accounting for the net proceeds and/or utilising them in connection with a simultaneous purchase.
Purchase of a freehold or leasehold residential property
FEE SCALE
The following scale of fees is inclusive of all legal work required to complete the acquisition of a single residential property (freehold or leasehold).
Legal Fees
Our fees for acting on the purchase of a residential property vary depending on the purchase price and complexity of the transaction. As a general rule our fee will be 0.25% of the purchase price subject to a minimum of £1,500.00 in relation to freehold purchases and £1,750.00 in relation to leasehold purchases.
The fee estimate covers all of the legal work required to complete the purchase of a single residential property, including acting in connection with any required mortgage.
Please note that if at any stage of a transaction our instructions are changed or a matter arises which adds to the complexity of the transaction we reserve the right to increase our fees accordingly.
The amount of work involved in relation to a particular transaction can vary widely, and matters can arise during the transaction which could turn a straightforward purchase into a more complex one. Examples of such potential complexities might be:
- A defect in title or a problem with the terms of a title document. Such defect if not remedied could affect the use of a property, the ability to obtain a mortgage on the security of the relevant property or its future saleability.
- The preparation of additional documents ancillary to the main transaction.
- An issue with regard to the provision of funds or the source of funds.
- Indemnity insurance policies may be required to protect against a minor defect in title or absence of planning permission or building regulation approval; such issues may attract additional time and expense.
- A lengthy chain of transactions which needs to be coordinated.
- The case becomes urgent.
- A requirement for a Lock Out or Exclusivity Agreement.
There is a distinction made between the purchase of freehold properties and the purchase of leasehold properties as there is considerably more work involved in relation to leasehold purchases. In addition there may be a requirement for:-
- Landlord’s consent for the sale/purchase. An application may need to be made to the Landlord for a separate document (a Licence to Assign) which will need to be entered into between landlord, seller and buyer; and/or
- a landlord may require a rent deposit, service charge deposit or a personal guarantee be provided, especially in the case of overseas buyers.
The requirement for any such additional documents will increase the costs associated with the transaction.
Disbursements
Disbursements are costs related to a legal transaction that are payable to third parties, such as, in the context of a real estate transaction, Land Registry fees or fees payable to a Managing Agent. The payment of these disbursements will be handled by us on your behalf and we will normally require cover for those costs before paying out the same.
We will provide you with a full list of expected disbursements at the commencement of your transaction and keep you informed of any additional disbursements during the course of your purchase.
The following is a non-exhaustive list of those disbursements that are commonly incurred in connection with a purchase of a residential property:
Type of disbursement or other cost
Usual cost (as at January 2019)
Usual cost (as at January 2019)
Land Registry
(The cost of obtaining official copies of title documents, by way of example only)
£6.00 plus VAT for copies of the title registers and title plan, per each title
£3.00 plus VAT for each copy document
Electronic money transfer fee
£35.00 plus VAT
Notice fees
(payable to a Landlord for example on the registration of a Notice of Transfer and Charge - generally only for leasehold purchases)
This fee may vary but is usually between £40.00 and £100 plus VAT per notice.
Registration of a new share certificate in management company (if applicable)
Fee varies
Land Registration fee
This fee is based on your purchase price. (Details on request.)
Search fees
(including but not limited to, searches with the Local Authority, Water and Drainage Authority, Environmental Search and Chancel Repairs Search)
Approximately £400
Stamp Duty Land Tax
(The amount payable depend upon the purchase price of the Property. This is a complex area and different rules may apply for example if a buyer is a first time purchaser, or if a buyer already owns another residential property or if the buyer is company)
The amount of any Stamp Duty Land Tax payable can be calculated on line:
For properties in England:
https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
For properties in Wales:
If it becomes clear that additional disbursements will need to be incurred during the course of your purchase we will provide you with the relevant details. We will normally request a payment on account of around £500 at the outset to cover the cost of necessary searches.
Value Added Tax
VAT, currently chargeable at the rate of 20%, will be added to our fees and several of the disbursements. We will confirm at the outset of the transaction the disbursements we believe will be incurred, and which of those will attract VAT.
Stages of the process
The stages involved in the purchase of a residential property vary according to the circumstances. However, we set out below some key stages for most transactions:-
- Obtaining instructions and providing initial advice.
- Undertaking checks on your identity and source of funds.
- Checking that your finances are in place to fund the purchase and making contact with the lender’s solicitors (if applicable).
- Receiving and advising on contract documentation and title documents.
- Carrying out necessary searches and advising on the results of those searches.
- Obtaining copies of relevant planning and other documentation, if required.
- Raising enquiries with the seller’s solicitors about the property.
- Advising on all documents and information received.
- Advising you on joint or shared ownership of the Property (if appropriate).
- Sending the final agreed contract to you for signature.
- Agreeing the completion date with the seller’s solicitors.
- Exchanging contracts and notifying you that this has happened.
- Arranging for all monies needed for the completion to be received from the lender (if applicable) and from you.
- Completing the purchase.
- Filing the Stamp Duty Land Tax Return on your behalf and paying the Tax.
- Registering you at the Land Registry as the owner of the Property and registering your lender as your mortgagee (if applicable).
- Serving notice of your purchase and any mortgage upon all relevant parties in accordance with the terms of your lease and/or registered title (mainly relevant to leasehold properties).
How long with my purchase take?
This depends upon a number of factors including
- The length of the chain of transactions.
- The time it takes the seller to obtain management information from the managing agents
- The time it takes for the buyer to obtain a mortgage offer
- The time it takes for the buyer to obtain the results of his searches.
On average, the process takes around 8-12 weeks from the date of the acceptance of the offer. However it can be quicker or slower depending on the parties in the chain and the complexity of the transaction.
Re-mortgage of a freehold or leasehold residential property
FEE SCALE
The following scale of fees is inclusive of all legal work required to complete a re-mortgage of a single residential property (freehold or leasehold).
Legal Fees
We set out below our fee structure for the refinancing of residential properties. Fees will vary according to the nature of any particular transaction and whether the property subject to the re-mortgage is freehold or leasehold.
A member of our Real Estate Team will be pleased to discuss your requirements
Re-mortgage of a single freehold property
Amount of the loan
Estimated fee range (exclusive of VAT)
Estimated fee range (exclusive of VAT)
Up to £750,000
£1,500 - £2,500
£750,001 - £1,000,00
£2,501 - £3,500
£1,000,000 +
Fee available on application
Re-mortgage of single leasehold property
Amount of the loan
Estimated fee range (exclusive of VAT)
Estimated fee range (exclusive of VAT)
Up to £750,000
£1,750 - £2,750
£750,001 - £1,000,00
£2,751 - £4,000
£1,000,000 +
Fee available on application
Our fees are higher in relation to a leasehold property as there is more work involved, including for example:-
- Checking lease terms and any supplemental title documents.
- Checking whether there have been any alterations to the Property and whether these have been permitted by the landlord.
- Checking management information relating to ground rent, service charges and buildings insurance.
The amount of work involved in relation to a particular transaction (freehold or leasehold) can vary widely, and matters can arise during the transaction which could turn a straightforward re-mortgage transaction into a more complex one. Examples of such potential complexities might be:
- A defect in title or a problem with the terms of a title document. Such defect if not remedied can affect the use to which a property may be put, your ability to obtain a mortgage or the future saleability of the property.
- Preparation of additional documents ancillary to the main transaction.
- An issue with regard to the provision of funds or the source of any funds over and above the new mortgage required to discharge any existing mortgage over the Property.
- Indemnity insurance policies may be required to protect against a minor defect in title or absence of planning permission or building regulation approval, which may attract additional time and expense.
- The case becomes urgent.
Disbursements
Disbursements are costs related to a legal transaction that are payable to third parties, such as, in the context of a real estate transaction, Land Registry fees or fees payable to a Managing Agent. The payment of these disbursements will be handled by us on your behalf and we will normally require cover for those costs before paying out the same.
We will provide you with a full list of expected disbursements at the commencement of your transaction and keep you informed of any additional disbursements during the course of your re-mortgage.
The following is a non-exhaustive list of those disbursements that are commonly incurred in connection with a re-mortgage of a residential property:
Type of disbursement or other cost
Usual cost (as at January 2019)
Usual cost (as at January 2019)
Land Registry
(The cost of obtaining official copies of title documents)
£6.00 plus VAT for copies of the title registers and title plan, per each title
£3.00 plus VAT for each copy document
Electronic money transfer fee
(or CHAPS fee)
£35.00 plus VAT
Notice fee
(payable to a Landlord for example on the registration of a Notice of Charge – Leasehold only)
This fee may vary but is usually between £40.00 and £100 plus VAT per notice.
Land Registration fees
This fee is based on the value of the mortgage. Details on request.
Search fees
(including but not limited to, searches with the Local Authority, Water and Drainage Authority, Environmental Search and Chancel Repairs Search.)
Approximately £400
Value Added Tax
VAT, currently chargeable at the rate of 20%, will be added to our fees and several of the disbursements. We will confirm at the outset of the transaction the disbursements we believe will be incurred, and which of those will attract VAT.
Stages of the process
The stages involved in a re-mortgage of a residential property vary according to the circumstances. However, we set out below some key stages that are likely to take place.
- Writing to the existing lender to obtain a redemption statement.
- Obtaining up to date official copy entries of title from the Land Registry.
- Carrying out searches.
- Forwarding the result of searches and also answers to enquiries to the new lender’s solicitors.
- Checking that the net mortgage advance will be sufficient to redeem the current mortgage.
- Requesting a final redemption statement from your existing mortgage lender.
- Carrying out searches on your title prior to completion.
- Requesting mortgage funds.
- Redeeming the existing mortgage.
- Registering the new mortgage against your title at the Land Registry.
How long will my re-mortgage take
This will depend on a number of factors. The average process can take between 4-8 weeks.