Residential Property Costs
Our very experienced residential conveyancing team is made up of three qualified solicitors (with over 60 years combined residential conveyancing experience) supervised by a partner, Fleur Everett, who has over twenty years’ experience in residential property matters.
We encourage you to contact us to discuss your intended sale or purchase. The amount of work we will need to do will depend on various factors. For example, whether the property you are to sell or buy is freehold or leasehold, whether it is registered at the Land Registry already or it is unregistered, whether it is an existing house or flat or whether it is a new build, whether you are to finance the purchase by cash or a mortgage, whether it is a Shared Equity Scheme, Help to Buy Mortgage or Help to Buy Equity Mortgage , Help to Buy ISA or Lifetime ISA. It is only when we have the particular details of your case that we will be able to provide an estimate of our costs that is relevant to you.
Disbursements are costs relating to your matter that must be paid to third parties. Disbursements and other expenses required will vary depending on the circumstance of your transaction.
Land Registry fees:
Fees are payable for a copy of the registered title and the plan and for other relevant copy deeds, for searches to check the buyer or borrower is not bankrupt, to protect buyers and mortgagees (lenders) from when the purchase is completed until the registration of the new owner or lender and for the application to register the new owner or lender. The registration application fees vary according to the value of the property or amount borrowed.
We deal with applications through the Land Registry portal where possible to keep land registration fees to a minimum for you. For a transfer of a whole existing registered title currently the Land Registry fees for registration through their portal range from £20.00 if the value is £80,000 or less and up to £455.00 if the value is £1,000.001 or more. Fees are doubled if portal application is not possible, for example, if only part of an existing registered title is to be bought or sold. If for a new lease or a new Transfer of Part, there are additional fees. As there are variations in the fees depending on the property transaction we cannot confirm the fee applicable until we have information from you and have details of the contract and title from the seller’s conveyancer. We will advise you if our initial estimate needs to be revised.
Leasehold property notice fees:
There are often notice fees payable to the landlord in long leasehold (e.g. 999 years) properties to give notice of the purchase or mortgage. For flats much higher fees may be payable to the landlord and/ or Management Company. These include fees for information, dealing with Deeds of Covenant or transfer of shares which can often be several hundreds of pounds.
Searches are undertaken when buying or mortgaging property to gather more information about the property, for example, relating to road maintenance, planning and building regulations, drainage, mining and other environmental and flooding risks.
Insurance policies are arranged where required to cover numerous risks where there is missing title information or documentation, (for example, the property is long leasehold and the freehold title details or the whereabouts of the freeholder are unknown, there is a missing deed which includes covenants, or there is no appropriate planning or building regulation approval); there is an insolvency risk (if a property is transferred at an undervalue) and to protect against chancel fee claims.
Mortgagee fees – Some mortgage companies charge an administration fee (LMS fee) of £12.00.
Bank Transfers are required for the transfer of funds on your purchase completion date to the seller’s Conveyancer and to redeem a mortgage. These are made as CHAPS payments and bank charges are £15.00 for each CHAPS payment. If you require a CHAPS payment to you of the balance of your sale proceeds the £15.00 fee will be payable. Alternatively, the fee for a Same Day Faster Payment is £3.50. We do not pass on bank charges for BACS payments, which we understand take the bank system between two and three working days to process.
Electronic anti-money laundering checks: When these are required you will be notified and the fee currently payable is £8.50 per name.
Stamp Duty Land Tax is often payable on residential property purchases but this will depend on the value of the property, the amount of rent in a new lease, if you are a first time buyer and whether you own or have owned either alone or with anyone else another property, or have inherited a property or are a beneficiary under a certain type of Trust which owns a property, so it is not possible to confirm the amount without further information.
When we are aware of the circumstances applicable to your matter, we will be able to provide an initial estimate of disbursements and any other expenses applicable to you. However, some of the expense amounts will only be known when supplied by third parties, such as landlords and management companies, or after an investigation of title when any policies required will become clear so that quotations can be obtained, so it can be much later in the transaction before all the detail is known. We will let you know if additional disbursements and expenses are found necessary.
We have set out an example estimate based on a typical freehold existing house sale as a guide. Please click Residential Property Costs Example 1
We have set out an example estimate based on a typical freehold existing house purchase with a standard mortgage as a guide. Please click Residential Property Costs Example 2
We have set out an example of a typical freehold existing house transfer or Assent (a transfer to a beneficiary in an estate administration) as a guide. Please click Residential Property Costs Example 3
If matters arise that are not within our initial costs estimate to you and which affect that estimate, we will contact you to explain the position and update our estimate.
Our hourly charge rate for additional work in more complex cases is £225.00 plus VAT.
If a transaction does not go ahead, we will charge you for the work undertaken and any disbursements or other expenses incurred.
Please contact us for an estimate that is specific to your case.
On purchases of freehold property with a mortgage a broad outline of the work we do is as follows:-
- Carry out local and other searches and preliminary enquires of the seller;
- Check the title of the property, summarise the information obtained about the property and advise you as to the provisions in the draft sale of contract;
- Obtain quotes for any insurance policies required;
- Check any mortgage terms and conditions and advise you on this and report on the title also to the mortgage lender;
- Ask you to sign the contract and pay the agreed deposit to us so that contracts can be exchanged and arrange the completion date;
- Prepare the document to transfer ownership to you, prepare any mortgage and Stamp Duty Land Tax return and obtain any balance purchase monies required from you and the mortgage lender;
- Undertake pre completion searches;
- At completion, the money is passed to the seller’s conveyancer in return for the Deeds, the signed transfer document and keys;
- After completion, we attend to payment of any Stamp Duty payable, ensure payment of premiums for any insurance policies and deal with the application to register the transactions at the Land Registry;
- On return of the title document we report to you and the mortgage lender concerning the registered title and deal with final documentation.
- There may be additional work required in any particular case.
On a sale of a freehold property a broad outline of the work we do is as follows:-
- Supplying information to you and those involved with the transaction;
- Checking the title of the property you are selling;
- Preparing documents, the sale contract and copying deeds and sending to your buyer’s conveyancer;
- Dealing with questions and enquiries raised by your buyer’s conveyancer and any negotiations necessary on the contract terms;
- Arranging quotes for any insurance policies required;
- Arranging for the contract to be signed, the completion date and the exchange of contracts;
- Approving the transfer deed to the buyers and arranging for the Transfer to be signed;
- If there is a mortgage, applying for and obtaining an up to date redemption statement;
- Completing your sale, paying any outstanding mortgage or loan, the estate agents charges and any insurance premiums (if applicable);
- Accounting to you for the net proceeds (or if there is a shortfall to discharge the mortgage and costs of sale obtaining the balance from you prior to completion);
- There may be additional work required in any particular case.