Residential Leasehold Purchase – example
The information below constitutes an example only of the costs and activities involved in a typical leasehold purchase transaction.
What we do:
Work required to complete the purchase of your new home will usually include but is not limited to:
- Taking your instructions and providing initial advice
- Undertake onboarding process, verify ID and source of funds
- consideration of the title
- review the lease and report to you on the contents of it
- review the LPE1 (Landlord’s Property Enquiries) from the landlord/freeholder and report to you on the contents
- approval/amendment of the contract
- consideration of law society protocol forms
- raising property searches (Local Authority, Environmental and Water Authority)
- raising enquiries as necessary
- preparation of the land registry transfer & mortgage deed (as appropriate and subject to further fee)
- undertake a transfer of the freehold or a share in freehold company if this is required
- reporting to you (and your lender) throughout
- exchange of contracts and completion
- submission of SDLT return and settlement of the liability (subject to further fee)
- provide Notice of Assignment (and charge) to the freeholder/management company
- registration at the land registry
- supply copy of registered title.
The example fees provided below are based on a registered leasehold purchase in the sum of up to £300,000.00.
Our fee assumes that:
- this is a typical leasehold purchase 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 such as a Declaration of Trust or Indemnity Insurance
- 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.
| ^Example fees for purchasing a typical registered leasehold property valued at £300,000.00 | |||
| Fee | VAT | Total | |
| Legal Fee | £1600.00 | £320.00 | £1920.00 |
| Mortgage Fee | £200.00 | £40.00 | £240.00 |
| SDLT Return admin fee | £125.00 | £25.00 | £150.00 |
| Electronic Money Transfer admin fee | £35.00 | £7.00 | £42.00 |
| Electronic ID Verification fee (each) | £15.00 | £3.00 | £18.00 |
| Disbursements (payments to third party agencies) | |||
| Search fees (approx.)* | £298.08 | £51.42 | £349.50 |
| Bankruptcy Search per person | £3.00 | £0.60 | £3.60 |
| Land Registry Priority Search (OS1) | £4.00 | £0.80 | £4.80 |
| Land Registry Registration Fee (electronic)** | £150.00 | £0.00 | £150.00 |
| Stamp Duty Land Tax | £2500.00 | £0.00 | £2500.00 |
| Notice of Assignment (and Charge) estimated | £100.00 | £20.00 | £120.00 |
| TOTAL | £5030.08 | £467.82 | £5497.90 |
* Search fees include Local Authority Search, Water Authority Search & Environmental Search and are subject to variation of fees based on locality.
**If the title is unregistered or a new title is being created as may be the case with new build properties or new apartment buildings, the Land Registry Registration fee will increase. The Land Registry charges Registration Fees based on a scale of property value and transaction type. You can find more information on Land Registry fees on www.gov.uk
^ The above is an indication of charges on the basis of a standard transaction and on the assumption that the transaction will not prove to be substantially more complex or time-consuming than expected. If the matter does not proceed to completion, work done and payments made up to that point will remain chargeable.
Management Company Fees
Deeds of Covenant can be required and fees charged by the freeholders managing agents, often between £175.00 and £250.00. These fees are often unknown until receipt of the LPE1 which is usually provided by the Seller’s solicitors. Also within the LPE1 will be costs of a land registry compliance certificate (if required) which often range between £75.00 and £125.00.
If the property comes with a share in the freehold company a charge is sometimes made of around £100.00 to provide a new Share Certificate.
You should also be aware that Service Charge (and often Ground Rent) will apply during your ownership. We will always confirm the Ground Rent and the anticipated Service Charge as soon as reasonably practicable in accordance with our CQS accreditation.
How long does a leasehold purchase take?
As no two transactions are the same it is very difficult to give a “one size fits all” timescale estimate. Much will depend on factors beyond our control such as property chains, mortgage offers, choice of solicitors, location of buyers etc etc
A best guess of a typical leasehold transaction timescale taking into account the addition of dealing with Management Companies would be 8-10 weeks to exchange of contracts and completion 2-3 weeks thereafter. We will keep you regularly updated throughout and seek to achieve your desired completion date as best we are able to.
In addition to our Residential Leasehold Guide available here, the following link is a superb resource when considering residential leasehold matters: Home – The Leasehold Advisory Service.