Cost of Purchase Leasehold Residential Property

Costs of Purchase of a leasehold residential property

Legal fees for the purchase of a leasehold property can be higher due to the need to deal with not only the seller of the property but also the management company as well.  In addition to the work undertaken to purchase the property from the seller It will also be necessary to deal with management company enquiries, service of notices, obtaining a new share certificate, ensuring membership of the management company is transferred, apportionment of the service charge and ground rent. A Deed of Covenant is also sometimes required.

To help you though this process a named solicitor will be allocated to your purchase from start to finish so that you will always know who to ask for in the event of any queries.

How much does this service cost?

Based on the value of the property we can give you a fixed fee quotation.  This means that you will have the peace of mind of knowing that our professional fees will not be higher than the quote given.

For example, if you are buying a leasehold property with a value £250,000 the fee will be £850 plus VAT and Disbursements * for dealing with the purchase plus a further £250 and additional Disbursements ** for dealing with the leasehold matters

Our Conveyancer’s fees and disbursements based on a purchase price of £250,000 are:

Conveyancer’s fees and disbursements

Estimated total: £4,255

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.

Disbursements

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 additional Disbursements which we anticipate could apply are set out separately below. This list is not exhaustive and is for guidance only. 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.

Additional Disbursements (which you may need to pay for depending on the particular circumstances)**

**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.

Stamp Duty Land Tax

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.

Stages of the Process

The precise stages involved in the purchase of a residential leasehold property vary according to the circumstances. However, below we have suggested some key stages that you may wish to include:

How long will my leasehold purchase take?

How long it will take from your offer being accepted until you can move in to your house will depend on several factors. The average process takes between 8-10 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 10-12 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.

* Our fee assumes 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. 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. all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
  5. no indemnity policies are required. Additional disbursements may apply if indemnity policies are required.