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Pricing - leasehold purchase


Typical pricing estimate for freehold purchase of residential property

  • Simple case Up to £500,000 in value - £1,500 plus VAT
  • Medium complexity case £500,000 to £750,000 in value - £1,700 plus VAT
  • High complexity case £750,000 to £1m and above in value - £1,900 plus VAT (assessed on a case by case basis) plus VAT

Disbursements

Disbursements are costs related to your matter that are payable to third parties. For example, search fees.

An example of the typical disbursement costs we would expect based on the purchase of a leasehold residential property valued at £200,000 are:

  • Fees for acting on behalf of the mortgage lender as set by your lender under the terms of the mortgage offer
  • Search fees £275.00
  • HM Land Registry fee £135.00
  • Land Registry and Land Charges searches £10.00
  • Fee for Completion of Stamp Duty Form £60.00 (inc VAT)
  • Electronic money transfer fee £43.20 (inc VAT)
  • Postage, telephone, fax and copying £30.00 (inc VAT)

We will provide a detailed specific quote for our costs plus disbursements once we have discussed the specifics of your matter with you.

We will provide a detailed specific quote for our costs plus disbursements once we have discussed the specifics of your matter with you.

For leasehold properties there are certain additional disbursements:

  • Notice of Transfer fee – This fee if chargeable is set out in the lease.
  • Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease.
  • Deed of Covenant fee – This fee is provided by the management company for the property and can be difficult to estimate.
  • Certificate of Compliance fee - To be confirmed upon receipt of the lease.

These fees vary from property to property and can range from between £200 and £500, although on occasion can 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.


Other costs

The legal fees and the disbursement fees together cover the work required to complete the purchase of your new home from the point we are instructed to the point we have registered your purchase at the Land Registry and paid any Stamp Duty Land Tax (SDLT) if the property is in England or Land Transaction Tax (LTT) if the property is in Wales.

Stamp Duty Land Tax or Land Transaction Tax

As well as the legal fees and the disbursement fees you will be required to pay either SDLT or LTT.

If the property is based in England, you can calculate the amount of SDLT you will need to pay using this link https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

If the property is based in Wales, you can calculate the amount of LTT you will need to pay using this link https://beta.gov.wales/land-transaction-tax-calculator


Meet the team

Our Residential Conveyancing Team has over 60 years of collective experience in delivering high quality work in all matters relating to residential sales and purchases. The Team has particular experience in investor sales and purchases, residential matters relating to Probate or Court of Protection work, re-mortgaging and auctions as well as more general residential sales and purchases. We have five members of the team who may work on your matter.

See more details about members of the Residential Conveyancing Team including number of years qualified, areas of specialism and examples of cases recently dealt with.


Factors that can increase costs and timescales

A detailed summary of the work involved in the average purchase of a leasehold residential property is set out in Scope of work – Purchase of a Leasehold Residential Property. This document also sets out the conditions and exclusions to our fees.

If any of these conditions and exclusions are incorrect then the overall cost may increase. Some examples of what might increase the cost of the work include:

  • if the legal title is defective or part of the property is unregistered
  • if we discover building regulations or planning permission has not been obtained
  • if crucial documents we have requested have not been provided

Time taken

The time taken from your offer being accepted until you can move in to your property will depend on a number of factors. The average process takes between 6-16 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 be a relatively quick process. However, if you are buying a leasehold property that requires an extension of the lease the process can take significantly longer.

Date: 05 December 2018