Legal Fee Information for Purchase of a Freehold or Leasehold Residential Property
Legal Fees are the amount you will be required to pay for all the work required to complete the purchase of your residential property.
Our fees cover all the work required to complete a standard purchase of a home you intend to live in, including dealing with third parties, dealing with standard mortgage lenders’ enquiries, 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.
We typically work on a fixed fee basis, so that from the outset you know what the fees will be for your transaction.
VAT, currently 20%, will be payable on all our fees and some disbursements, and we will clearly confirm which disbursements carry VAT in formal quotation or as we advise you to incur them.
Our fees
Below is an overview of our fees and typical disbursements for a freehold or leasehold residential property purchase:
• Our average, standard legal fee for a residential Freehold purchase (with mortgage): is from £2,500.00 – £4,500.00 plus VAT (£3,000.00 - £5,400.00 inc. VAT) for properties up to the value of £1million.
• Our average, standard legal fee for a residential Freehold purchase (without mortgage): is from £2,000.00 – £4,000.00 plus VAT (£2,400.00 - £4,800.00 inc. VAT) for properties up to the value of £1million.
• Our average, standard legal fee for a residential Leasehold purchase (with mortgage): is from £3,000.00 – £4,500.00 plus VAT (£3,600.00 - £5,400.00 inc. VAT) for properties up to the value of £1million.
• Our average, standard legal fee for a residential Leasehold purchase (without mortgage): is from £2,750.00 – £4,000.00 plus VAT (£3,300.00 - £4,800.00 inc. VAT) for properties up to the value of £1million.
The value of the property, location and any complexities of the purchase will dictate the final fee charged within this range. For leasehold properties this is also dependent on lease complexity, and whether share of freehold included.
For properties over £1million we typically charge on a percentage basis which is 0.3% - 0.5% of the purchase price plus VAT, depending upon the complexity of the transaction. Our fees are dependent on the agreed purchase price of the property, the location and when other complex factors are involved (such as transactions that involve the sale of multiple dwellings or land) to reflect the proportionate risk of carrying out higher-value transactions for our clients and for more complex transactions, the seniority of the legal adviser appointed.
• We charge £10.00 plus VAT (£12.00 Inc. VAT) Electronic money transfer fee (per transfer.
• For residential property purchases using a corporate vehicle (purchasing a residential property through a Limited company) there is a supplemental fee of £250.00 plus VAT (£300.00 Inc. VAT) plus £22.20 companies house filing fee. This is due to company’s house registration requirements and additional documents required for lending purposes. Please note we need to carry out ID checks on all directors/shareholders which is £20.00 plus VAT (£24.00 Inc. VAT) per person
• Referral fee (if any): We do not pay referral fees
• Fees for acting on behalf of a High Street mortgage lender on a joint representation basis would generally be included in our fee stated above
Anti-Money Laundering Checks
For all our clients, we are required by our regulator to undertake Client Due Diligence (CDD) which is made of up KYC (Know Your Client) and AML (Anti Money Laundering) details of which are contained within our terms of engagement which will be sent to you when instructing us.
In addition to our standard charges as referred to above, the firm will apply a CDD charge of:
• £20.83 (£25.00 inc. VAT) for undertaking KYC per UK resident individual
Below, we detail what services are covered in our standard fee.
The final quote will depend on the value and location of the property and the complexity of the transaction. We would warn you that there are some charges made by others which we will not be able to ascertain until we are instructed and make the necessary enquiries.
If at any stage our fees change, we will notify you and discuss the reason for any changes. This would typically occur if you change your instructions or your case involves an unforeseen complexity.
Our average fees assume that:
a) 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.
b) For Leasehold matters this is the assignment of an existing lease and is not the grant of a new lease.
c) The transaction is concluded in a timely manner and no unforeseen complication arise.
d) All parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation.
e) No indemnity policies are required. Additional disbursements may apply if indemnity policies are required.
Disbursements and Other Costs
Disbursements are costs related to your matter that are payable to third parties, such as Stamp Duty or Land Transaction Tax (SDLT), Search Fees, and HM Land Registry fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.
You will be provided with a full list of disbursements in our formal quotation. If you need to incur any further disbursements during your case, you will be notified in advance of the reason and the amount.
Typical disbursements and other costs that may apply in your matter will include: -
• HM Land Registry Priority Search £7.00 per title
• Office Copy Entries* (Per Document) £3 per deed
• Land Registry Title Documents £3.00 per document (average £9.00 per title usually official copy entries, filed plan and filed Transfer)
• Bankruptcy search fees (per person if there is a mortgage) £6.00
• Preparing and submitting SDLT return £100.00 plus VAT (£120.00 Inc. VAT)
• Lawyer checker (verifies the legitimacy of a solicitor and their bank account details) £10.00 plus VAT (£12.00 Inc. VAT)
• Freehold Purchase with a management company – £250.00 plus VAT (£300.00 Inc. VAT)
*Typically, £6 for Freehold properties and £15 for Leasehold properties but can be higher if more documents required to be ordered from Land Registry.
In addition to our fees set out above, the following disbursements will be required. These are costs related to your matter that are payable to third parties, such as Stamp Duty or Land Transaction Tax (SDLT), Searches, and Land Registry fees.
HM Land Registry Fee
The fees chargeable by the land registry can be found here https://www.gov.uk/guidance/hm-land-registry-registration-services-fees
Stamp Duty or Land Transaction Tax (on purchase)
This depends on the purchase price of your property. You can calculate the amount you will need to pay by using HMRC's website or if the property is located in Wales by using the Welsh Revenue Authority's website
Typical Property Search Fees
Search fees vary from case to case depending on the local authority. We will advise you which searches you need for your transaction and the cost of each search. Our average fee for a standard property search pack is estimated £450.00 - £650.00 (no VAT applies).
• Local land charges search;
• Enquiries of the local authority;
• Environment search;
• Planning Search;
• Chancel repair liability indemnity; and
• Water and Drainage search
Other official local searches may be required by your lender and your conveyancer will use their local knowledge to confirm which local searches you will need. A standard authority search will reveal whether any legal restrictions or obligations affect the property.
These include tree preservation orders, flood searches as well as the property’s planning and building enforcement history. Other various searches maybe required depending on your location and can reveal whether the property is in the vicinity of any planned major infrastructure projects. Relevant searches can also reveal if the property is built on or near land that was affected by mining and can include a search for mine shafts and subsidence.
We will advise you which searches you need for your transaction and the cost of each search.
Anticipated disbursements for a leasehold purchase
There may be further disbursements for a Leasehold purchase or the purchase of a freehold property where there is a Management Company which if chargeable is set out in the Lease or Transfer and usually paid to the Landlord or Management Company. We shall not know what charges will be raised, or the cost of these, until we receive the Lease and further Leasehold information from the Landlord or Management Company. However typical additional Leasehold disbursements are as follows (normally including VAT @20%):
• Notice of Transfer fee: This fee, if chargeable, is set out in the Lease. Usually the fee is between £25.00 – £150.00 plus VAT (£30.00 - £180.00 inc. VAT)
• Notice of Charge fee (if the property is to be mortgaged): This fee is set out in the Lease. Usually the fee is between £25.00 – £150.00 plus VAT (£30.00 - £180.00 inc. VAT)
• Deed of Covenant fee: This fee is charged by the Management Company for the property and can be difficult to estimate. Usually it is between £150.00 – £300.00 plus VAT (£180.00 – £360.00 inc. VAT)
• Certificate of Compliance fee: To be confirmed upon receipt of the Lease and can range between £25.00 – £150.00 plus VAT (£30.00 - £180.00 inc. VAT)
These fees are set by the management company / freeholder and can vary from property to property. They can, on occasion, be significantly more than the ranges given above and VAT may be charged. 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.
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 for a residential freehold property purchase is between 8 – 12 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 6-10 weeks.
However, if you are buying a Leasehold property that requires an extension of the Lease, this can take significantly longer, between 2 and 6 months. In such a situation, additional charges would apply for the work involved in extending the Lease.
Matters that can typically delay a transaction include delays in searches, issues with a mortgage offer, issues raised in a survey or delays from the other party or the other parties’ solicitors.
Stages of the process
The precise stages involved in the purchase of a residential property vary according to the circumstances. However, below we have suggested some key stages that you may wish to include:
• Take your instructions and give you initial advice
• Provide information on joint ownership if applicable
• Check finances are in place to fund purchase and contact lender’s solicitors if needed
• Receive and advise on contract documents
• Carry out searches
• Obtain further planning documents if required
• Make any necessary enquiries of seller’s solicitor
• Give you advice in a comprehensive report on all documents and information received
• Provide a summary of your mortgage documents and send them to you for signature
• Send final contract to you for signature
• Agree completion date (date from which you own the property)
• Exchange contracts and notify you that this has happened
• Send you a completion statement and arrange for all monies needed to be received from lender and you
• Complete purchase
• Deal with payment of SDLT
• Deal with application for registration at Land Registry
• Discharge your lender’s post completion requirements
The stages of a Leasehold purchase transaction are the same as that of a freehold purchase. The difference is mainly that there are more documents to check and read through when dealing with a Leasehold transaction, including considering the provisions of the lease and notifying the landlord or managing agents of your purchase. Further when dealing with the application for registration, following completion, there are usually other notices such as the notice of transfer etc. to also deal with.
Other Factors and Exclusions
Our fees are fixed, however there may be factors which would typically increase the cost of the fees estimated above. Where there is likely to be any additional cost, we will make sure you are informed of this at the earliest opportunity and a clear estimate of those extra costs will be provided.
• Value of the property
• Where the property is situated
• Overseas client
• Purchasing or selling in the name of an individual or a company
• First-time buyer
• New build
• Listed buildings
• First registration of title
• In purchase cases, whether primary residence, buy to let or second/holiday home
• Multiple owners
• Shared ownership scheme
• Using a help to buy scheme, and whether it is an equity loan or ISA
• Purchase under right to buy
• Purchase at auction
• Property has been repossessed
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.
The Conveyancing Team
Depending on the type of transaction, complexity and experience required we will allocate the most appropriate member of our residential conveyancing team to your transaction once you instruct us.
Regardless of who works on your case, they will be supervised by the head of our residential property department Avi Barr, Solicitor and Partner at Orwins.
For more information on our team members, visit Our People.
Questions
If you have any questions relating to our services and our fees, all our contact information can be found here: Contact Us.