The following information has been produced to provide guidance and transparency as to our fees in dealing with a leasehold property purchase.
What does our estimate include?
Our fees cover all of the work required to complete the purchase of a leasehold property, including:-
- Communicating with you, your sellers’ conveyancer, the estate agent and your mortgage provider, as necessary, to facilitate a smooth transaction.
- Request the draft contract and title documentation from the sellers’ conveyancer.
- Prepare the Land Registry transfer.
- Advise you on the contract and property title and provide you with the contract and transfer for signature.
- Advise you on joint ownership.
- Carry out a Local Authority search, drainage and water search, environmental and flood search and, where necessary, a mining search.
- Advise you on the results of the searches.
- Raise such enquiries as we consider necessary to clarify any discrepancies in connection to the property title.
- Advise you on any information provided by the sellers’ conveyancer in their replies to our enquiries.
- Advising you on the implications of owning a leasehold property, including the ground rent, service charges and insurance position, and any costs payable by you to the landlord, management company or their agents in administering the change of ownership.
- Review the conditions of your mortgage offer.
- Report to you with the mortgage deed for your signature.
- Negotiate a completion date on your instructions with the sellers’ conveyancer.
- Obtain pre-completion searches.
- Exchanging the contracts on your authority to secure the sellers’ commitment to the contract.
- Preparing a detailed financial statement for you in relation to the purchase in anticipation of completion.
- Facilitating the completion of the purchase and making such payments, as are necessary, to the seller and to HMRC in respect of Stamp Duty Land Tax.
- Serving the appropriate notices of change of ownership on the landlord, management company or their agents.
- Attend to the registration of your ownership at the Land Registry.
- Retain a copy of your file on record for a minimum of seven years for your information purposes.
Disbursements are costs related to your matter that are payable to third parties, such as the Land Registry document fees and searches.
We handle the payment of the disbursements on your behalf to ensure a smoother process. The disbursements, which are strictly necessary, are set out in your conveyancing estimate. This list is not exhaustive and other disbursements may apply depending on your specific transaction.
For leasehold property transactions, you should also be prepared for the following anticipated disbursements*:
- Notice of Transfer fee – this fee is chargeable if set out in the lease. Often the fee is between £75.00 to £150.00.
- Notice of charge fee (if the property is to be mortgaged) – this fee is set out in the lease. Often the fee is between £75.00 to £150.00.
- 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 £100.00 to £250.00.
- Certificate of Compliance fee – to be confirmed upon receipt of the lease. This fee can often can range between £100.00 to £250.00.
*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.
What does our fee estimate assume?
Our fee estimate assumes:
- 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.
- The property you are buying is registered with the Land Registry.
- The transaction is concluded in a timely manner and no unforeseen complications 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.
- The property is not subject to a management company or rent charge for the common areas of an estate, which you are required to contribute to.
- There is only one mortgage (source of funds) being obtained for the purchase.
How long will my property purchase take?
How long it will take from your offer being accepted until completion will depend on a number of factors. The average process takes between 6 to 10 weeks. It can be quicker or slower, depending on the number of parties in the chain. Generally, the longer the chain, the longer a transaction will take. Remember we can only proceed to complete as quickly as the slowest party in the chain, as everyone’s transaction will be dependant on everyone else’s. It is therefore important that you speak to the estate agent to ascertain the length of the chain.
Generally, we find that the main causes for the delay in a transaction are as follows:
- A party fails to promptly instruct their conveyancer.
- A party fails to promptly apply for their mortgage (buyers only).
- Local Authority delays in providing a Local Authority search (buyers only).
- A party fails to communicate promptly with the chain.
- The landlord or management company delays providing the necessary information for the purchase to progress.
What is not included in my fee estimate?
Where a matter becomes more complicated or more work is required on our part, it may be necessary to adjust our fee estimate to account for our additional fees. In the spirit of full transparency, we have prepared a list of the most common occurrences that are not included in your fee estimate together with an explanation of the additional work required and our fee for carrying out the additional work. A copy of this list is provided with your fee estimate at the outset and can also be found here.
Our fee estimates, unless expressly stated, apply only to individuals and does not apply to corporate clients.