Purchase of a Leasehold Residential Property

A property represents one of the greatest financial investments you will ever make and sound legal advice is essential. No property or transaction is exactly the same and because of this we will always give you an individual costs estimate at the start of the transaction taking into account the actual circumstances of the matter.

The quality of our service is recognised by accreditation under the Law Society’s prestigious Conveyancing Quality Scheme. We are panel members of all the major mortgage lenders and have good relationships with local estate agents and surveyors.

Please note our fee assumes that:

• This is a reasonably straightforward 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 transfer (assignment) of an existing lease and is not the grant of a new lease.
• The transaction is concluded in a timely manner and with no unusual issues.
• All parties to the transaction are co-operative and there is no unreasonable delay from third parties.
• No indemnity policies are required (for example for defects with the lease or planning or building regulation matters). Additional disbursements may apply if indemnity policies are required.

Disbursements

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

Anticipated Disbursements specific to a leasehold purchase:

• Notice of Transfer fee – This fee, if chargeable, is set out in the lease and payable to the conveyancers for the landlord when notice of the transfer of the lease is given to them. Often the fee is between £50 and £100 (plus VAT)
• Notice of Charge fee (if the property is to be mortgaged) – This fee, payable to the conveyancers for the landlord, is set out in the lease when notice of any Legal Charge/Mortgage is given to them. Often the fee is between £50 and £100 (plus VAT)
• Deed of Covenant fee – For the provision of a deed which you may be obliged to enter into under the lease with any management company to observe the terms of the lease. The deed is often provided by any management company of the property and the fee can be difficult to estimate. Often the fee is between £150 and £350 (plus VAT).
• Certificate of Compliance fee – To be confirmed upon receipt of the lease (often landlords stipulate that a transfer of a lease cannot take place unless they provide a certificate that there are no arrears under the lease) and the costs of this can range between £150 and £250 plus VAT.

Please note these disbursement sums vary from property to property and can on occasion be greater than the ranges given above. We can give you an accurate figure once we have sight of contract papers.

You should also be aware that ground rent and service charges 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.

Stages of the process

The precise stages involved in the purchase of a residential leasehold property vary according to the circumstances. However, below are some key stages with which we will be engaged on your behalf:

• Take your instructions and give you initial advice
• Check finances are in place to fund purchase
• Receive and advise on contract documents
• Carry out searches (for example local, environmental chancel check, water and drainage)
• Obtain any planning documentation if required
• Make any necessary enquiries of seller’s solicitor
• Give you advice on the documents and information received
• Go through conditions of your mortgage with you
• Send final contract to you for signature
• Draft Transfer
• Advise you on joint ownership issues
• Obtain pre-completion searches
• Exchange contracts with an agreed completion date (date from which you own the property) and notify you that this has happened
• Arrange for all monies needed to be received from lender and you
• Complete purchase
• Deal with payment of Stamp DutyLand Tax (if payable)
• Deal with application for registration at Land Registry of the transfer and any new mortgage
• Deal with registration notices to landlord of transfer and any new mortgage

How long will my 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 10 to 12 weeks. However, this can be quicker or slower, depending on the number of parties in any chain of transactions or if you are a first time buyer, purchasing a new build property with a mortgage in principle. We will discuss this with you at the earliest opportunity so you always have a clear picture of how the matter proceeds and how long things are likely to take.

Our charges are generally a fixed fee however if, during the course of your transaction, anything unusual comes to light, we will discuss any change in fees with you and seek your approval.