Purchase of Residential Leasehold Property
The precise stages involved in the purchase of a leasehold residential property vary according to the circumstances. However, the details below will give you an idea of the key stages:
- 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 joint ownership
- Go through conditions of mortgage offer
- Send final 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 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 4-6 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 2 and 3 months. In such, a situation additional charges would apply.
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 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
- this is the assignment of an existing lease and is not the grant of a new lease
- 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 payable on our fees and the search fees at a rate of 20%)
£1,360.00 if purchase price is between £250,001 – £500,000
£1,860.00 if purchase price is between £500,001 – £800,000
£2,860.00 if purchase price is between £800,001 – £1,000,000
£3,110.00 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.
HM Land Registry fee
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
Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease. Often the fee is between £40 – £60.
Deed of Covenant fee – This fee is provided by the management company for the property and can be difficult to estimate. Often it is between £100 – £150.
Certificate of Compliance fee – To be confirmed upon receipt of the lease, as can range between £100 – £150.
Please note: 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 we receive this information.
Stamp Duty Land Tax
Penman Sedgwick's opening hours:
Monday to Friday, 9.00am – 5.30pm