Purchase of Freehold Residential Property

penman sedgwick solicitors watford river colne new

The precise stages involved in the purchase of a freehold residential property vary according to the circumstances. However, the details below will give you an idea of the key stages:

Key Stages

The key stages of purchasing a freehold residential property are as follows:

  • Take your instructions and give you initial advice
  • Check finances are in place to fund purchase and contact lender’s solicitors (if applicable)
  • Receive and advise on contract documents
  • Carry out searches
  • Obtain further planning documentation if required
  • Make any necessary enquiries of seller’s solicitor
  • Give you advice on all documents and information received
  • Advise you on a joint ownership (if applicable)
  • Go through conditions of mortgage offer with you
  • Send agreed form contract to you for signature
  • Draft transfer
  • Agree completion date (this is the date from which you will own the property)
  • Exchange contracts and notify you that this has happened
  • Arrange for all monies needed for completion to be received from lender (if applicable) and you
  • Obtain pre-completion searches
  • Complete purchase
  • Deal with payment of Stamp Duty/Land Tax
  • Deal with application for registration at Land Registry

How long will my house purchase take?

How long it will take from your offer being accepted until you can move in to your house will depend on a number of factors. The average process takes between 6-8 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 4 weeks.

Guide to our fees

Our fees cover all of 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 you wish to buy is in Wales.

The fees referred to below assume that:

  • 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
  • the transaction is concluded in a timely manner and no unforeseen complications arise
  • all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
  • no indemnity policies are required. Additional disbursements may apply if indemnity policies are required

(Please note: VAT is payable on our fees and the search fees at a rate of 20%)

Legal Fee

£870.00 if purchase price is between £0 – £250,000
£975.00 if purchase price is between £250,001 – £500,000
£1,200.00 if purchase price is between £500,001 – £800,000
£1,500.00 if purchase price is between £800,001 – £1,000,000
£1,900.00 if purchase price is between £1,000,001 – £1,500,000

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.

Search Fees

Search fees: £300 (estimated but this depends on area)

HM Land Registry fee

Please note: fee shown is for property already registered – fee will be higher where the property is unregistered.
Value: 0 to £80,000 Fee: £20
Value: £80,001 to £100,000 Fee: £40
Value: £100,001 to £200,000 Fee: £95
Value: £200,001 to £500,000 Fee: £135
Value: £500,001 to £1,000,000 Fee: £270
Value: £1,000,001 and over Fee: £455

Electronic money transfer fee

Electronic money transfer fee: £42

Disbursements

Disbursements are costs related to your matter that are payable to third parties, such as Land Registry fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.

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 https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro or if the property is located in Wales by using the Welsh Revenue Authority’s website here https://beta.gov.wales/land-transaction-tax-calculator

If you need any advice on the purchase of freehold residential property then please email us and we will respond as soon as possible, or call us.


Penman Sedgwick Solicitors Watford