Purchase Freehold /Leasehold Property
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 £850.00 plus VAT at 20% (£1,020 including VAT at 20%) for a freehold property priced at £150,000.00 to £4,000.00 plus VAT (£4,800.00 including VAT at20%) for a freehold property priced at £2,000,000.
VAT is a government tax that we are required to charge, and will be added at 20% to our fees and disbursements, except where we stipulate the disbursements are outside the scope of VAT.
We have set out below an example of a quote are based on a freehold property price of £200,000.00
Our fees cover all of the work required to complete the purchase of your home based on the assumptions below, 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.
Conveyancer’s fees and disbursements
· Legal fee £1,200.00
· VAT on legal fee at 20% £240.00
· Electronic money transfer fee £40
· VAT on electronic money transfer at 20% £8.00
· Subtotal £1488.00
Disbursements
Disbursements are costs related to your matter that are payable to third parties, such as HM Land Registry fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.
· Search pack fees £250-£600
· VAT on search fees (based on £250) at 20% £50
· HM Land Registry fee £150
· HM Land Registry Final searches £50.00+VAT ( £60.00 Inc VAT)
· Electronic Identity verification - £54.00 per person (Inc VAT) at 20%
· Subtotal £564.00 (based on searches at £250)
Estimated total (excluding Stamp Duty or Land Tax – see below): £2,052.00
Stamp Duty or Land Tax (on a 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.
HM Land Registry fees
Please refer to HM Land Registry for relevant rates. These usually range from £40 – £900.00 (£48.00 - £1,080.00 including VAT). HMLR searches and official copies are subject to VAT
Other transactions and additional fees
The above example quotation is on the basis of a transaction at £200,000 our fees vary depending on a number of factors such as complexity and purchase price. Below is a table showing how the fees can vary in this regard.
Purchase Value Legal Fee for purchase including VAT at 20%
£25,000 -£150,000 From £850.00 – £1,200.00 +VAT at 20%
£150,001 – £400,000 From £1,200.00 – £1,450.00+ VAT at 20%
£400,001 – £650,000 From £1,450.00– £1,850.00 + VAT at 20%
£650,001 – £750,000 From £1,850.00 – £2,450 + VAT at 20%
£750,001 – £950,000 From £2450 – £2650 + VAT at 20%
£950,001 – £1,100,000 From £2650 – £3000 + VAT at 20%
£1,100,001 – £2,000,000 From £3000 – £4000 + VAT at 20%
Additional Fees
Certain transactions can require additional work, and these can include leasehold properties, newbuild properties, properties with a mortgage unregistered properties as an example. The additional prices for these types of transactions are set out below. We shall advise you beforehand what the additional charge will be.
Leasehold: £200.00 + VAT at 20%
New Build Fee : £250.00+ VAT at 20%
Help To Buy ISA: £50.00+ VAT at 20
Unregistered Title: £200.00 +VAT at 20%
Acting For Lender: £175.00 VAT at 20%
Administering Gifted Deposit from a third party: £75.00+ VAT at 20%
Limited Company Purchase: £250 (+20% VAT of £50)
Arranging a Defective Title/Search Validation Indemnity Policy £50.00+ VAT at 20%
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 (usually range between £60 – £300);
· certificate of compliance (usually range between £60 – £300);
· notice of transfer and/or charge (usually range between £30 -£300 each);
· share certificate costs depending on the share value;
· apportionments of ground rent and/or service charge depending on the amount charged in ground rent;
· Certificate of compliance fee (usually range between £60 – £300)
The above fees 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 be subject to VAT@20%.
Service charges and ground rent may also be payable, and we will let you know the anticipated charges when we receive this information.
We reserve the right to review our fees if a transaction becomes complicated. This will be discussed with you in advance. Wherever possible, our conveyancing work is carried out on the basis of the estimate provided. Within this estimate we will include all conventional work associated with a typical conveyancing transaction. However, sometimes issues arise during the course of a transaction which are not normally part of the conveyancing process and for which we have to make an additional charge. Some items occur more often than others and for these items we have standard fees which are set out above. However please note that this list is not exhaustive.
Timeframe for how long the house purchase will 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. 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 8 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 3 and 4 months. In such, a situation additional charges would apply.
Stages of the Purchase Transaction
There are a number of stages to the process of buying a property and we have covered some of them below. These could vary depending on the type of property that you are purchasing and the circumstances of the transaction.
· 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 mortgage offer with you
· Send final contract to you for signature
· Agree 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
Our fees assume that:
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. where the property is leasehold, this is the assignment of an existing lease and is not the grant of a new lease
3. the transaction is concluded in a timely manner and no unforeseen complication arise
4. no indemnity policies are required. Additional disbursements may apply if indemnity policies are required.
Your purchase will be dealt with by Ozma Ali who is a qualified solicitor who has specialized in conveyancing for over 20 years and has a wealth of experience. Please do not hesitate to contact her on 0204 513 1296 or by email, to ozma.ali@glamissolicitors.com