Scenario – Purchase of a leasehold residential property for joint owners costing £350,000.00
Estimated total costs for this scenario broken down as follows: £2,053.40*
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 (Stamp Duty) if the property is in England, or Land Transaction Tax (Land Tax) if the property is in Wales.
*Stamp Duty or Land Tax – Rather than ending on 31 March 2021, the temporary nil rate band of £500,000 will be in place until 30 June 2021. Then from 1 July 2021 to 30 September 2021 the nil rate band will be £250,000. The nil rate band will return to the standard amount of £125,000 on 1 October 2021. This is based on the presumption that the purchasers are not first-time buyers and do not own any other properties.
Conveyancer’s fees and disbursements
- Ashtons Legal fee – £1,050
- Leasehold property – £120
- Search fees – £350
- Ashtons Legal fees for Lifetime ISA (if applicable, per LISA) – £90
- Ashtons Legal Fee for Help to Buy scheme administration (if applicable – per ISA) – £60
- HM Land Registry fee – £135
- Bank transfer administration fee – £36
- Stamp Duty or Land Tax filing fee – £8.40
- Other/minor disbursements e.g. Land Charges Searches – £24
- Landlord’s Notice Fees – £180.00 (approx.)
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. We will update you on the specific fees upon receipt and review of the lease from the seller’s solicitors.
- Notice of Transfer fee – This fee if chargeable is set out in the lease. Often the fee is between £120 – £180 including VAT. Please note, this can be payable to more than one entity, and therefore chargeable more than once.
- Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease. Often the fee is between £120 – £180 including VAT.
- 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 £120 – £180 including VAT.
- Certificate of Compliance fee – To be confirmed upon receipt of the lease, as can range between £120 – £180.
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. please note, these are determined by and payable to the Landlord/Management Company or their legal representatives.
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.
Stamp Duty or Land Tax (on purchase)
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 here.
Stamp Duty or Land Tax – £0. Rather than ending on 31 March 2021, the temporary nil rate band of £500,000 will be in place until 30 June 2021. Then from 1 July 2021 to 30 September 2021 the nil rate band will be £250,000. The nil rate band will return to the standard amount of £125,000 on 1 October 2021. This is based on the presumption that the purchasers are not first-time buyers and do not own any other properties.
Referral fee (if any)
This is not an additional cost payable by you. In some circumstances, it is a commercial cost payable by us to the firm who referred you to us. Full information will be contained in the initial letter we send you which confirms our instructions and full details of our fees etc, including the amount of any referral fee we may have paid. In this example, we have assumed that you have approached us via an Estate Agent with whom we have an agreement to pay £50 per case referred.
- Amount of referral fee paid – £50
- Recipient of referral fee XYZ Estate Agents Ltd.
Stages of the process
These are some key stages in the life of the transaction. Click here to find out more from our ‘Expertise in moving home’ brochure.
- 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 the mortgage offer
- Send final contract to you for signature
- Draft Transfer
- Advise you on joint ownership
- Obtain pre-completion searches
- Agree to 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 Stamp Duty/Land Tax
- 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 into 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 property with a mortgage in principle, it could take 10 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between two and four 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.