Buying and Selling Property Costs
Property matters are dealt with by Julian Stern from the North Harrow Office, a solicitor who specialises in conveyancing and probate and has been qualified since 2008. Julian oversees residential purchases and sales.
The conveyancing services offered deal with providing advice and the work involved regarding the purchasing and sale of leasehold and freehold properties. The costs vary according to the amount of work involved as well as the price of the property concerned. As more time is required to act in leasehold property matters, the fees charged will be higher than those charged for work undertaken dealing with freehold property.
When acting for a buyer of a flat or property which has a leasehold element, we have to obtain a significant amount of information regarding the management, service charges, ground rent etc of the flat or maisonette or other property being purchased and ensure the term remaining on the lease is acceptable to any mortgage lender or buyer who may wish to sell in the future. Such transactions to extend the term of the lease involve additional work and expenses which are charged at the firm’s hourly rate. In a typical leasehold matter, our firm's fees will be £1,200.00 plus VAT of £240.00 totalling £1,440.00, plus additional expenses (set out below) known as disbursements, which are charged by and then paid by us on your behalf to third parties, and our fees for a freehold property will be between £1,200.00 plus VAT of £240.00 totalling £1,404.00 plus disbursements and £1,800.00 plus VAT of £360.00 totalling £2,160.00 plus disbursements, depending upon the price of the property.
Our firm's hourly rate is £280.00 plus VAT of £56 totalling £336.00 per hour. Should a matter attract additional time required that is not foreseen at the start of an instruction, the firm may charge additional costs, based upon our hourly rate for the extra time spent. If additional costs are envisaged, we speak to our clients first before such additional costs are incurred, to advise them and make them aware, enabling our clients to plan accordingly.
Additional expenses (disbursements) you will pay when buying a property include:
|
Search fees |
Approx: £300.00 (estimate based on a regulated search) |
|
Lawyer search |
£21.60 |
|
Bankruptcy search (per client) |
£2.00 |
|
Priority search |
£3.00 |
|
HM Land Registry registration fee |
Around £135 dependent on purchase price |
|
Stamp Duty Land Tax { |
Dependent on purchase price – refer to HMRC website or in Wales by using the Welsh Revenue Authority’s website |
|
Telegraphic transfer fee |
£37.00 plus VAT £7.40 for each transfer |
|
Notice fees (when buying a flat/maisonette) |
Usually around £80.00 per notice |
|
(a separate notice fee is incurred for a mortgage and a transfer of the property) |
Additional expenses you will need to pay when selling a property include
|
Land Registry official copy entries |
Usually between £6.00 and £12.00 |
|
Bankruptcy search (per individual) |
£2.00 |
|
Telegraphic transfer fee |
£37.00 plus VAT £7.40 for each transfer |
|
Management sales pack on leasehold sales |
Usually between £240.00 to £400.00 |
|
Estate agent fees |
The estate agent will agree their fee with the seller before a buyer for the property is found |
Additional expenses for Leasehold administration fees
- Notice of Transfer fee – this is chargeable as prescribed in the leasehold pack or as set out in the lease. Often the fee is between £48-£120.
- Notice of Charge fee (if the property is to be mortgaged) – this fee is set out in the lease, often between £48-£120.
- Deed of Covenant fee – this is provided by the management company for the property and can be difficult to estimate Often it is up to £120.
- Certificate of Compliance fee – To be confirmed upon receipt of the lease as can range between £120-£300.
Clients are also made aware of the fact that ground rent and service charges are likely to apply throughout the ownership of leasehold properties. The amounts are confirmed to clients as soon as we receive this information.
TIME SCALES OF PURCHASE OR SALE
The time it will take between your offer being accepted on a purchase or the sale of your property and moving will depend on a number of factors. The average process takes about 8-12 weeks from acceptance of an offer to exchange of contracts (when the buyer and seller become contractually bound to complete). Completion is usually agreed at this stage to be 10-14 days thereafter.
It can be quicker or slower depending on the dates when draft contract papers are received and all enquiries made and agreed between the parties, particularly if there is a chain of buyers and sellers involved. The simplest transaction involving a first-time buyer purchasing a vacant freehold property with a mortgage agreed in principle could take 6-8 weeks while a chain of buyers and sellers looking to move at the same time is likely to take longer. Leasehold properties with any complications in the title such as covenants to third parties or necessitating an extension of the lease are also likely to take longer to be resolved before completion can be agreed, probably between 2-3 months, possibly involving additional charges at our hourly rate. We keep clients informed of any likely delays once full paperwork is disclosed from our initial searches and enquiries.
KEY STAGES OF THE PROCESS
The precise stages involved in the buying or selling of property will vary according to the circumstances. However, these are likely to be the key stages to consider:
- Taking instructions and giving initial advice
- Checking finances are in place to fund purchase or sale and contact lender’s solicitors if necessary
- Receive draft contract documents on a purchase or prepare them on a sale and advise thereon
- Carry out searches on a purchase
- Obtain further planning documentation if required
- Make any necessary enquiries of seller’s solicitor on a purchase or answering the same on a sale after consulting the seller
- Giving advice on all documents and information received on a purchase
- Advising on the conditions of a mortgage offer with a purchaser
- Sending final agreed contract to client for signature
- Agreeing completion date (from which the property will change hands) for moving
- Exchanging contracts and notifying client
- Arranging for all money needed to be received for completion from lender and client
- Completing the sale or purchase in liaison with client
- On a leasehold purchase, dealing with leasehold administration and paying the fee
- Dealing with the payment of Stamp Duty/Land Tax on a purchase
- Dealing with the application for registration of the purchase at the Land Registry
- Reporting to client once all necessary work has been completed