PURCHASE OF A FREEHOLD/ LEASEHOLD RESIDENTIAL PROPERTY
The stages involved in the purchase of a residential property vary according to the circumstances. Below you may find some of the key stages which a conveyancing transaction would usually include:
Stage 1: Instructions and title review
Generally, at the outset of the matter we collect your instructions and provide you with legal advice on the ownership (when applicable). It is our duty to check that finances are in place to fund the purchase.
Stage 2: Investigation and pre contract enquiries
Upon receipt of the contract title and documents, we review and advise on the content. We strive to ensure that an accurate due diligence on the property is completed and therefore upon receiving and reviewing the draft contract and title deeds, we carry out searches and review the results. Any planning or listed building and building regulation documentation is also within the scope of our due diligence. In most transaction, we will advise you to carry out a structural survey report. Finally, once confirmation of the searches results and surveyor’s report (if any) have been received, we will make the necessary enquiries with the seller’s solicitor.
Stage 3: Report on Title
A report on title is drafted for your benefit. We strongly encourage you to read the document that will include full details of the property and any defects or issues identified that may influence your decisions.
Stage 3: Drafting transfer deeds
Once you have confirmed, based on the outcomes of our due diligence, your interest to progress the transaction we will confirm to the Seller’s Solicitor your are happy to move to exchange and completion (date on which the transfer the ownership of the property takes place). The Contract and transfer document, in their final version, will be sent to you for your approval and signature and the deposit, usually 10% (or full purchase funds, if applicable) must be transferred to our client account.
Stage 4: Exchange & completion
Exchange and completion may take place at different times. Should this be the case, we will be notifying you. The exchange of contracts and deposit transfer create a binding relationship between the parties. Completion information will be requested and pre completion searches shall be carried out in order to prepare for completion within the agreed date. At completion, the balance of the purchase funds shall be transferred to the seller and the transfer deeds must be dated to record the ownership of the new proprietor.
Stage 4: Post completion
Finally, post completion matters must be carried out. The relevant Stamp Duty tax shall be paid and the application to the Land Registry for registration shall be filed on your behalf.
Our fees cover our activities necessary to complete the purchase of a residential freehold/leasehold property, dealing with the registration of your title at the Land Registry and with the payment of Stamp Duty Land Tax (SDLT).
From our experience, a general residential property purchase transaction cannot be exactly estimated and the individual circumstances below should be referred to as guidance. A detailed estimate of our fees based on your individual transaction shall be provided at the outset of any matter.
GENERAL PURCHASE TRANSACTION
From our experience a transaction of the following nature would cost between £4,000 and £8,000 plus VAT (currently at 20%).
- This is a standard transaction and that no unforeseen matters arise. No preparation of additional documents is required, ancillary to the main transaction including but not limited to drafting a Lockout Agreement, Deed of Easement or Alterations.
- The property is being sold with vacant possession.
- The transaction is concluded in a timely manner without any specific need for urgency or delay.
- All parties to the contract are co-operative and there is no unreasonable delay from third parties involved in documentation.
- No indemnity policies are required. Additional disbursements may apply if indemnities are required.
- That the value of the property is not in excess of £1,000,000.
- That this is not the sale of part of a registered or unregistered title.
- There is no lack of building regulation, planning or listed building consents for works carried out to the property or breach of such consents.
- The transaction does not involve the first registration of title.
- Tax advice is not included.
Estimated Fees and Disbursements
Please kindly note that disbursements are third party charges related to your matter and these are out of our control. We are happy to handle the payment of the disbursements on your behalf for the benefit of the transaction.
- Search fees may vary depending on Local Authority costs and list of searches between £500 and £1,000 plus VAT;
- HM Land Registry fee can be found on the relevant HMRC website at https://www.gov.uk/guidance/hm-land-registry-registration-services-fees
- SDLT – cannot be estimated in advance as this will depend on the purchase price of the property and your individual circumstances;
- Surveyor’s fees – may vary between £1,000 and £1,500;
- Accountant’s fee – if any CGT tax is applicable, may vary between £1,000 – £1,500 plus VAT;
- Notice of transfer fee – This fee is chargeable if set out in the Lease and may vary between £50 – £175 plus VAT;
- Deed of covenant fee – This is the fee provided by the management company/freeholder. It is not possible to provide you with an exact estimate and may vary between £250-£750 plus VAT;
- Certificate of compliance fee – It is not possible to provide you with an exact estimate and may vary between £50 – £150 plus VAT;
- Transfer of a share in a freehold or residents management company – It is not possible to provide you with an exact estimate and may vary between £50 – £150 plus VAT.
- Bank charges for transfer – May vary between £15 – £25 for a same day transfer.
Likely completion time
Generally, the time estimated between your offer being accepted until completion will depend on a number of factors. On average, a transaction may take between 4 – 12 weeks.
SALE OF A FREEHOLD/LEASEHOLD RESIDENTIAL PROPERTY
The precise stages involved in the purchase of a residential property vary according to the circumstances. Below are some of the key stages which a transaction would usually include:
Stage 1: Instructions and drafting of documents
Generally, at the outset of the matter we collect your instructions and give you initial advice and scoping of the transaction. Furthermore we will contact your existing lender (if any) to obtain redemption figures and draft transfer documents. We will immediately commence drafting of the Transfer deed documents (which transfer the ownership of the property on completion). The drafts will be send to the Buyer’s Solicitor for approval. Once approved by the Buyer, the Contract and Transfer Documents will be send to you for your approval and signature.
Stage 2: Answer pre contract enquiries and queries on title
Upon receipt of the enquiries from the Buyer’s Solicitor we will obtain your replies to property information forms and to the fixtures and fittings form. We will complete the contract drafting, obtain copies of your property title from the Land Registry, and send the full contract pack to the Buyer. Should further enquiries be raised, referred to planning documentation or consent to works you may have been carried out, we will obtain from you or the Council copies of planning documentation. Finally, we will reply to the outstanding enquiries raised by the Buyer’s Solicitor and agree the final contract terms and any apportionments of service charge and ground rent to the date of completion.
Stage 3: Exchange & completion
Exchange and completion generally take place at different times. The exchange of contracts and deposit receipt create a binding relationship between the parties. At completion, the balance of the purchase funds shall be transferred by the Buyer and the transfer deed will be dated to record the ownership of the new proprietor.
Stage 4: Post completion
Finally, post completion matters must be carried out. We will redeem any existing mortgage, pay the estate agents fees and pay the net sale proceeds of the sale to your preferred account.
Our fees cover our activities necessary to complete the sale of a residential freehold/leasehold property and dealing with the redemption of your mortgage if any.
From our experience, a general residential sale transaction costs cannot be exactly estimated and the individual circumstances below should be referred to as guidance. A detailed estimate of our fees based on your individual transaction shall be provided at the outset of any matter.
GENERAL SALE TRANSACTION
From our experience a transaction of the following nature would cost between £4,000 and £8,000 plus VAT (currently at 20%).
- This is a standard transaction and that no unforeseen matters arise. No preparation of additional documents is required, ancillary to the main transaction including but not limited to drafting a Lockout Agreement, Deed of Easement or Alterations.
- The property is being sold with vacant possession.
- The transaction is concluded in a timely manner without any specific need for urgency or delay.
- All parties to the contract are co-operative and there is no unreasonable delay from third parties involved in documentation.
- No indemnity policies are required. Additional disbursements may apply if indemnities are required.
- That the value of the property is not in excess of £1,000,000.
- That this is not the sale of part of a registered or unregistered title.
- There is no lack of building regulation, planning or listed building consents for works carried out to the property or breach of such consents.
- Tax advice is not included.
Estimated Fees and Disbursements
Please kindly note that disbursements are third party charges related to your matter and these are out of our control. We are happy to handle the payment of the disbursements on your behalf for the benefit of the transaction
- Landlords and/or managing agents/management company fees for replies to property enquiry forms – it is not possible to estimate such fees that can vary between £350 – £600 plus VAT.
- Licence to assign or rent deposit deed if required by the lease – it is not possible to estimate such fees that can vary between £250 – £750 plus VAT.
- Bank charges for transfer – May vary between £15 – £25 for a same day transfer.
Likely completion time
Generally, the time estimated between you accepting the offer of the buyer until completion will depend on a number of factors. On average, a transaction may take between 4 – 12 weeks.
