Buying a Leasehold Property

When buying a leasehold property, or looking to sell, Tinn Criddle can guide you through the process

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Purchase of a leasehold residential property

Our fees cover the work necessary to complete the purchase of a residential property on your behalf including, acting jointly for your Lender if you are purchasing with a mortgage, dealing with the registration of the property post-completion at H.M. Land Registry and dealing with payment of the Stamp Duty Land Tax (SDLT) if the property is situated in England or Land Transaction Tax (LTT) if the property is situated in Wales.

Our fees are based on hourly rates and further details are contained within our Client Information Booklet. A detailed fee quote based on your particular transaction can be provided upon request and will be provided at the outset of any transaction on which we are acting. In the event that we need to alter the original quotation provided, we would let you know, straightaway.

For transactions of a purely routine nature:

Purchase price	No Mortgage	With Mortgage
£0-£99,999	£1,237.00 (£1,484.80 inc. VAT)	£1,742.50 (£2,091 inc. VAT)
£100,000-£124,999	£1,293.00 (£1,551.60 inc. VAT)	£1,799.00 (£2,158.80 inc. VAT)
£125,000-£149,999	£1,349.00 (£1,618.80 inc. VAT)	£1,855.00 (£2,226 inc. VAT)
£150,000-£199,999	£1,461.50 (£1,753.80 inc. VAT)	£1,911.00 (£2,293.20 inc. VAT)
£200,000-£249,999	£1,518.00 (£1,821.60 inc. VAT)	£1,967.50 (£2,361 inc. VAT)
£250,000-£299,999	£1,608.00 (£1,929.60 inc. VAT)	£2,072.00 (£2,486.40 inc. VAT)
£300,000+	On Enquiry	On Enquiry

All of the above costs are subject to VAT at a rate of 20%.

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Anticipated ‘leasehold disbursements’

These will be confirmed to you upon receipt and review of the Lease and any Leasehold Information Pack etc.

By way of example:

Notice of transfer fee: Such fee will be set out in the Lease. Often this fee is anywhere between £50 – £250 plus VAT but could be more or less;

Notice of charge fee (if the property is to be mortgaged): Again, this fee will be set out in the Lease. Often the fee is anywhere between £50 – £175 plus VAT but could be more or less;

Our Services

Additional fees

Deed of covenant fee: This is the fee provided by the Management Company/Freeholder for the property and can be difficult to estimate as fees vary from property to property. Often if it is between £250-£750 plus VAT but, again, could be more or less;

Certificate of compliance fee: To be confirmed upon receipt of the Lease. Often the fee is between £50 – £150 plus VAT but, again, could be more or less;

Transfer of a share in a freehold or residents Management Company: To be confirmed upon receipt of the management information from the Management Company or any dedicated Managing Agents. Often the fee is between £50 – £150 plus VAT but, again, could be more or less.

Other fees and disbursements

Disbursements are costs related to your matter that are payable to third parties, such as search fees which we handle on your behalf to ensure a smoother process.

This will include:

Telegraphic transfer fee: £15.00 (plus £3.00 VAT per transfer);
SDLT or LTT: This will depend on the purchase price of the property, and will also be dependent upon the individual circumstances of the buyer. (Please see the section on SDLT or LTT below for further information);
SDLT submission fee: £9.00 (plus £1.80 VAT);
Money Laundering search fee: £30 (plus VAT) per person
Search fees: £300 (inclusive of VAT) approximately; this will vary for each individual property depending upon which precise searches are required. We will include such fees in our detailed fee quotation;
HM Land Registry fees:

Purchase price	On H.M. Land Registry	Not on H.M Land Registry
£0-£80,000	£20	£45
>£100,00	£40	£95
>£200,000	£100	£230
>£500,000	£150	£330
>£1,000,000	£295	£655
£1,000,000+	£500	£1105

SDLT in England or LTT in Wales (on a residential property purchase)

This depends on the purchase price of your property. In addition the level of Stamp Duty Land Tax will vary depending on whether you are a first time buyer, purchasing a new Lease, purchasing a single private residence, whether the purchase is the replacement of your current ‘main residence’, whether you own a share in another residential property and other factors.

On simple transactions you can calculate the amount that you will need to pay using HMRC’s website or if the property is in Wales by using the Welsh Revenue Authorities website.

However, the rate of tax payable can be complex in some circumstances and different from the sum the calculator indicates (higher or lower) in some cases. Our team will provide individual advice on such matters.

Stages of the process

The precise stages involved in the purchase of a residential, Leasehold property vary according to the circumstances. Below are some of the key stages which a transaction would usually include:

Obtaining details of the transaction and providing you with a detailed fee quotation;
Taking your instructions and giving you initial advice on the transaction;
Carrying out identity and finance checks (as required);
Advising you on joint ownership and the possibility of a Declaration of Trust (if applicable);
Receiving, reviewing and advising on the draft Contract papers and Title to the property;
Carrying out pre-Contract searches and reviewing the results;
Making any necessary enquiries of the seller’s solicitor and agreeing the Contract terms;
Reporting to you on the Title to the property, Lease terms and the Property and Management Information received. This includes providing you with our detailed Contract Report advising you on any defects in Title or matters which could affect the future marketability or value of the property and providing suggestions of how such matters can be best remedied, including obtaining any necessary Indemnity Policy quotations and advising you on the same;
If applicable, to review and explain to you the conditions of your mortgage offer and the nature and effect of you signing and entering into the mortgage documentation;
Drafting the Transfer Deed which is the document that transfers ownership of the property to you on completion;
Having you execute the engrossment Contract and Transfer Deed and obtaining deposit funds from you. This usually being 10% of the purchase price of the property;
Agreeing the Completion Date (the date from which you will become the legal owner of the property);
Submitting the request for funds draw-down from the Lender (if applicable);
Exchanging Contracts and notifying you that this has happened. This will create a binding contract between you and the seller and reminding you of the need to ensure Buildings Insurance is in place from the day of exchange;
Obtaining pre-completion searches;
Completing the purchase;
Serving Notice of Transfer and Charge (if applicable) on the Landlord and any Management Company in accordance with the terms of the Lease;
Dealing with the payment of SDLT or LTT; and
Dealing with the application for registration at H.M. Land Registry.

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How long will the Leasehold property purchase take?

The timescale from your offer being accepted until legal completion will depend on a number of factors. On average the process takes between 10 – 20 weeks. It can be quicker or slower, depending on the position of other parties in the chain and whether, for example, the property is a new build property.

Alternatively if you are buying a leasehold property which requires a Licence to Assign or an extension of the Lease again this can take significantly longer and in such a situation additional charges may apply but we would provide an updated quote of our fees.