Our prices for a leasehold purchase

Our prices for a leasehold purchase

Thank you for looking at our conveyancing services.

Our efficient team will get you moving quickly with the minimum of fuss, while making sure that you are fully protected.  We know you will want to know what is happening every step of the way, so we pride ourselves on being approachable and keeping you informed.

We have over 70 years’ experience of serving the local community.  Our property team is headed by David Fraser, who has lived and worked in Abergavenny for over 20 years.

We know how important it is that you know what to expect, so here we explain more about the process and the likely costs of buying a leasehold residential property.  We recognise that everybody’s needs are different, and circumstances can change unexpectedly, so we will always discuss the costs of your individual case at the outset.  We will also update you regularly on your costs and if our initial estimate needs revising.

Please complete our enquiry form or call us on 01873 852535 for a personalised quotation.

1. What will we do for you?

We will let you have a breakdown of what our fees include, when we provide you with a quote. It may include some or all of the following matters:

  • approving the contract and if required, negotiating amendments;
  • reviewing the legal title to the property, including the lease and freehold title;
  • reviewing the information supplied by the freeholder or managing agent (the ‘pre-sale pack’);
  • undertaking searches and raising enquiries;
  • reviewing your funding arrangements;
  • reporting to you on our investigations;
  • acting on behalf of, and reporting to your lender;
  • exchanging contracts and undertaking pre-completion searches;
  • accounting to you with a completion statement;
  • completing the purchase for you, paying the purchase price to the seller’s solicitors;
  • serving any required notices required under your lease;
  • making an application to the management company for a new share certificate (if applicable);
  • obtaining a certificate of compliance from the freeholder/managing agents for HM Land Registry purposes;
  • submitting your stamp duty land tax return to HM Revenue and Customs (or where the property is in Wales, submitting your land transaction tax return to the Welsh Revenue Authority) and paying any duty owed;
  • registering your ownership of the property with HM Land Registry.

2. How much will it cost?

We do not want you to have any unwanted surprises during the course of your transaction so we will give you an estimate of likely costs and disbursements before you decide to instruct us.

Broadly speaking, we will agree a fixed fee with you but if your matter is more complex or it is difficult to know what will be involved, we may charge you for the time spent. We reserve the right to increase our charges if a matter becomes particularly complicated or time consuming.

We know that every transaction is unique, so we will keep you informed if we identify any additional work which will need to be done in order to successfully conclude your matter.

2.1. Fixed fees

Most solicitors charge a fee proportionate to the value of the property, so the fee you will pay depends on the price you are paying for your property, together with a number of factors including the complexity of the title and your funding arrangements.

Our fees range from £1,100.00 plus VAT for the purchase of a flat to £1,990.00 plus VAT for the purchase of a leasehold property priced at £1,000,000.

Example quote for a flat purchased for £250,000 for the whole of the property that is already registered with the Land Registry:

  • Legal fee £1,300.00
  • VAT £260.00
  • Stamp duty land tax/Land transaction tax TBC

    (but dependent on whether or not you will continue to own a second property at the time of your purchase, in which case you may be liable to a 3% surcharge on the value of the property)

  • Electronic transfer fee £24.00

    (inclusive of VAT)

  • HM Land Registry fee £150.00
  • Searches £250.00
  • LawyerCheck £14.40

    (inclusive of VAT) if relevant

  • HM Land Registry final searches £3.60

    (£3.60 (inclusive of VAT) per Official Search (and £2.40 (inclusive of VAT) per purchaser if relying on a mortgage)

  • Estimated total £2,002.00

2.2. Fee based on the time spent

It may be necessary to agree an hourly rate with you, if it is not possible to give you an accurate estimate of the likely costs involved with your sale.

Hourly rates are based on the qualification and experience of your legal representative. These rates are currently:

  • Partner/Solicitor £195.00 per hour
  • Paralegal/Trainee Solicitor/Clerk £110.00 per hour
All professional costs, whether fixed fee or hourly rate, are subject to VAT.

2.3. What factors could increase the costs?

We want to ensure you only pay for the service you receive, so, as an example, a simple flat purchase with standard funding arrangements will cost less than a complex leasehold title involving a lender who requires us to undertake additional work on their behalf.

Some factors which could typically increase the cost of the service you require are:

  • if the legal title is defective, the lease needs to be extended or a deed of variation is required;
  • if the title is unregistered;
  • if there is an intermediary leasehold title;
  • if there is a management company that we need to engage with to ensure compliance with any regulations which may apply;
  • if we need to obtain a certificate of compliance for a restriction on the title or you are required to enter into a deed of covenant;
  • if we discover that the correct consents have not been obtained for alteration works;
  • if you are obtaining financial contributions from third parties;
  • if you are purchasing under the help to buy scheme or using a complex funding arrangement;
  • if you are having the benefit of a Help to Buy ISA;
  • if you are purchasing through an auction or from a lender under a power of sale, with tight deadlines to meet;
  • if documents or information are requested from you or any other party, which requires our work to be duplicated;
  • if the property is a new build or is being transferred out of an existing title;
  • if you require much more than the usual time to be spent on your case.

2.4. Costs payable to other organisations (disbursements)

Disbursements are charges levied by third parties which apply to your transaction, and which we will pay on your behalf. These costs are fixed by the third-party supplier and we cannot influence them.

Stamp duty land tax/land transaction tax

Please refer to HM Revenue and Customs for relevant rates, or if the property is located in Wales the Welsh Revenue Authority.

If you are purchasing a new lease and an annual rent is payable, you may need to pay stamp duty land tax/land transaction tax on the ‘net present value’.

HM Land Registry fees

Please refer to HM Land Registry for relevant rates.

The Land Registry fees for registration of the property are not subject to VAT but all other Land Registry fees are.

Searches

These costs are not fixed. Each search provider will charge a fee for their service and each local authority, water authority (etc.) will have their own fee scale. On average, the searches you will require cost between £175.00 and £250.00. This is assuming you only require the basic Local Search, Drainage Search and (if appropriate) Coal Search.

Any variation is accounted for on your completion statement during the course of the transaction.
Some searches are subject to VAT.

Electronic transfer fee

The charge levied by the practice (which includes the cost payable by us to the bank) is £24.00 inclusive of VAT.

Other disbursements

When buying a leasehold property, there are often additional charges payable on completion to third parties such as the freeholder or a management company. Examples of these are:

  • deed of covenant;
  • certificate of compliance;
  • notice of transfer and/or charge;
  • share certificate costs;
  • apportionments of ground rent and/or service charge.

The above fees generally range from £50.00 to £350.00 but vary from property to property; they could be significantly more than the range given, but we will let you know about your charges when we receive the ‘pre-sale pack’ which is supplied by the sellers. These charges may or may not be subject to VAT.

Service charges and ground rent may also be payable and we will let you know the anticipated charges when we receive this information.

3. Is there anything that is not covered?

It is important to note that the information above relates to residential conveyancing for individuals who are buying a property to live in. If any of the circumstances below apply, it is likely to involve additional work, or you may require advice from another department within the practice:

  • if you are purchasing the property as an investment;
  • if you are acting in your capacity as director of a company;
  • if the property you are buying is to be transferred out of an existing title and documents need to be drafted or negotiated.

4. How long will it take?

Generally speaking, your purchase should take between four and six weeks to complete but this depends on many factors, including the speed of your searches, mortgage offer and the co-operation of all parties. If a pre-sale pack is required from a management company and/or freeholder, it can take much longer to complete than the standard four to six weeks. If you are in a ‘chain’, any dates will need to be agreed with all parties.

5. What are the key stages of the process?

As members of the Law Society’s Conveyancing Quality Scheme we follow the Law Society Conveyancing Protocol which is designed to make the conveyancing process as straightforward and efficient as possible.

The steps involved in the purchase of your property will include the following:

  • Once we have received a memorandum of sale from the selling agent, or details of the transaction from you if your matter is a private sale, we will ask you to complete a short questionnaire and to put us in funds to enable us to commence searches.
  • The seller’s solicitors will supply us with a contract pack, including title deeds to the property, a plan, a copy of the freehold and leasehold title together with a copy of the lease, protocol forms (a property information form, a fittings and contents list and a leasehold information form), a contract and the energy performance certificate.
  • We will check title to the property, order searches, approve the contract and draft a transfer deed. We will also raise any relevant enquiries with the seller’s solicitors so that we can report to you thoroughly; it may be that some of these enquiries have to be forwarded to the managing agents/freeholders and this will be done by the seller’s solicitor.
  • We would recommend you have a survey carried out, as we are unable to advise you on matters such as the physical structure of the building. If you are getting a mortgage, your lender will also carry out a valuation of the property. Please remember that the valuation is only for the benefit of the lender. You should let us have a copy of your survey and mortgage valuation.
  • Once we have received your mortgage offer, searches and replies to enquiries, and the Leasehold Information Pack, we will provide you with a written report on the property for you to consider. We will also send you a contract and transfer deed to sign, or you can attend the office to sign them and discuss any questions you may have.
  • If we are also instructed in your sale, we will ensure that the two transactions can exchange simultaneously, and supply you with completion statements setting out the costs and disbursements incurred in relation to each matter.
  • As soon as all parties are in a position to proceed, we will exchange contracts. This is the point at which the agreement is binding, and you cannot pull out of the transaction without incurring penalties. At the point of exchange you should book your removals and put your buildings insurance in place as this is when the risk of the new property will pass to you.
  • We will order your mortgage advance, or ask you to put us in funds for any balance required to complete.
  • On the completion date, funds will be transferred between solicitors and once completion has taken place, we will notify you and the selling agents so that keys can be released to you.
  • On completion, we will serve notice on the freeholder and/or managing agents to advise them that you are the new owner of the property so that they may update their records.
  • Post completion we will submit your stamp duty land tax return to HM Revenue and Customs (or where the property is in Wales, submit your land transaction tax return to the Welsh Revenue Authority) and pay any tax owed. We will also register you as owner with HM Land Registry and supply you with evidence once HM Land Registry has completed our application, and send you copies of the title together with all documents which you may need when you come to sell the property.

6. Supervision

All our staff are supervised by the partners. David Fraser has particular responsibility for our property team. For more information, including details of qualifications and experience of our team, please visit Our Team page.