Sale of Leasehold Residential Property

The precise stages involved in the sale of a leasehold 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 involved in selling a leasehold residential property are as follows:

  • Take your instructions and give you initial advice
  • Check title to the property and contact any mortgagee with regard to obtaining deeds and a redemption statement if needed
  • Obtain a leasehold information pack from the relevant landlord/managing agent
  • Prepare a contract pack and submit this to the buyer’s solicitors
  • Obtain any relevant planning documentation if required
  • Respond to any necessary enquiries raised by the buyer’s solicitor
  • Give you advice on any enquiries raised by the buyer’s solicitors
  • Send agreed form to you for signature
  • Approve transfer prepared by buyer’s solicitors
  • Deal with any pre-completion search enquiries raised by buyer’s solicitors
  • Agree completion date
  • Exchange contracts and notify you that this has happened
  • Arrange for you to sign the relevant documentation required for completion
  • Complete sale
  • Deal with discharge of any existing mortgage and remit net proceeds of sale to you

How long will my sale take?

How long it will take from you accepting an offer to you vacating the property and completing the sale 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 selling a flat to a buyer who is buying with the aid of a mortgage, it could take 8 weeks or longer.

However, if you are selling 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 sale of your home.
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 is payable on our fees at a rate of 20%)

Legal Fee

£970.00 if sale price is between £0 – £250,000
£1,290.00 if sale price is between £250,001 – £500,000
£1,560.00 if sale price is between £500,001 – £800,000
£1,990.00 if sale price is between £800,001 – £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.

Electronic money transfer fee

Electronic money transfer fee: £50.40

Disbursements

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

The disbursements which we anticipate will apply are set out separately below. This list is not exhaustive and there may be other disbursements which may apply in certain circumstances.

Anticipated Disbursements

Copies of Land Registry documents obtained from HM Land Registry. Depending on the documents required the Land Registry fee is likely to be £8 – £40.

Licence to Assign fee
This fee is provided to the landlord or the management company/managing agent for their consent to the sale of the property and can be difficult to estimate. Often it is between £150 – £300 but can sometimes be considerably more.

Leasehold Information Pack fee
This fee is payable to the landlord or managing agent for them to provide a pack of information relating to the lease and the property including service charge information and buildings insurance details. This is likely to be in the region of between £75 – £250.

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 and have contacted the relevant landlord/managing agent.

If you need any advice on the sale of a leasehold residential property then please email us and we will respond as soon as possible, or call us on 01923 225212.


Penman Sedgwick Solicitors Watford