Purchase of a leasehold residential property

Our fees cover all the work required to complete the purchase of your new home, including dealing with registration at the Land Registry and 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 is in Wales.

Conveyancer’s fees and disbursement

• Legal fees – these are set out at the end of this Note under the heading (“Fee scale for Residential transactions”).
• Search fees – these will vary depending primarily on the location of the property but are likely to be between £400 – £600 plus VAT.
• HM Land Registry fee – this will depend on the value of the transaction.
• VAT payable – this is payable on the Legal fees and Search fees but not on the HM Land Registry fee.

Disbursements are costs related to your matter that are payable to third parties, such as Land Registry fees. We handle the payment of the disbursements on your behalf to ensure a smoother process. We will require money from you on account to cover the Search fees. There are certain disbursements which will be set out in the individual lease relating to the property. The disbursements which we anticipate will apply are set out separately below. This list is not exhaustive and other disbursements may apply depending on the terms of the lease. We will update you on the specific fees upon receipt and review of the lease from the seller’s solicitors.

Anticipated Disbursements*

• Notice of Transfer fee – This fee if chargeable is set out in the lease. Often the fee is between £25 – £75.
• Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease. Often the fee is between £25 – £75.
• Deed of Covenant fee – This fee is provided by the management company for the property and can be difficult to estimate. Often it is between £200 and £400.
• Certificate of Compliance fee – To be confirmed upon receipt of the lease, as it can range between £75- £125.

*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.

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 this we receive this information.

Stamp Duty Land Tax

This depends on the purchase price of your property and your personal circumstances (for example whether you are buying in your own name or in a company and whether you, and any non-purchasing spouse, has an interest in any other residential property worldwide). You can calculate the amount you will need to pay by using HMRC’s websiteor if the property is located in Wales by using the Welsh Revenue Authority’s website here.

So, by way of example, assuming a purchase price of £1,000,000.00 the total cost of a leasehold purchase would be (in relation to the anticipated disbursements referred to above we have taken a mid-range figure for each of the listed items):