Every residential transaction is unique, its features dependent on the nature of the characteristics of the property and the legal rights affecting it, and on your particular requirements. At the beginning of a sale or purchase, we will discuss with you first of all your priorities, and then the features of the property.
We are aware that a property sale or purchase involves a major investment of your capital: it should not be treated lightly and your priorities are uppermost.
The service we provide, in general terms but bearing in mind that each deal is unique, are set out below, along with the fees that you should expect for a typical transaction.
Purchase
Our role
We will:
- Considered the agreed terms for the purchase
- Request from the seller full information about the property
- Investigate the title
- If it is a lease, review the terms of the lease
- Raise further enquiries (if necessary)
- Obtain a local authority search of the property and other searches we consider relevant
- Consider the terms of the draft contract and propose amendments where we consider amendment desirable
- Provide to you a Report on Title (see below)
- Prepare the form of transfer (unless it is the grant of a new lease)
- Circulate the documents for your signature
- Provide a Financial Statement showing the overall sums required from you to complete the transaction
- Effect exchange of contracts (at which point the purchase becomes legally binding on both sides)
- Request the drawdown of funds from the lender (if you are obtaining a mortgage)
- Raise final completion enquiries
- Complete the purchase
- Pay the stamp duty land tax due
- Register the purchase at the Land Registry
- Provide you with the documents of title after registration
Further steps are required in connection with your obtaining a mortgage. If the lender chooses to instruct separate solicitors then they will carry these steps out, and they may take on the payment of stamp duty land tax and registration. If (as is usual) we act for the lender also then we will also:
- Discuss with you the terms and requirements of the proposed mortgage
- Report to the lender on the title and transaction
- Ensure compliance with the lender’s standard requirements
- Register the mortgage along with the purchase.
We do not however advise on the financial viability of any mortgage nor of the purchase itself.
If the transaction involves the grant of a new lease to you, this will be prepared by the seller’s solicitor, and we will advise you on its terms. We will also seek to negotiate the terms of the lease to the extent that they are negotiable, though a standard lease in a block or development may not be negotiable.
The Report on Title
The Report on Title will advise you, amongst other things of:
- The title to the property
- The terms of the lease (if applicable)
- Any rights affecting the property benefiting other people (for example restrictive covenants or rights of way)
- Any rights over neighbouring land benefiting the property
- Any items of concern or interest revealed by the searches carried out or the enquiries raised
- Any items for you to consider further
- The stamp duty land tax payable
Your role
Amongst other thing, you will need to:
- Advise us on your particular requirements and priorities
- Inspect and familiarise yourself with the property you are buying
- Advise us of any characteristics of the property which would not be obvious to us from the paperwork
- Commission a survey of the property
- Consider the Report on Title and decide whether you wish to go ahead on these terms and if you have further queries
- Provide information in a timely manner in particular in relation to any requirements of a mortgage lender
- Consider your tax position
- Execute and return to us the documents
- Arrange your move
- Arrange insurance (which may be required by the mortgage lender beforehand)
- On the day of completion, contact the utility companies to advise them of a change of customer
Pricing
The cost of the purchase has three main elements:
- Legal fee (plus VAT)
- Disbursements (outlined below)
- Stamp duty land tax (in England) or Land transaction tax (in Wales)
Legal costs we would charge for a typical purchase transaction are set out in a table below, as are the likely disbursements. The costing on a percentage basis takes account of the value to you, the additional time required for a larger transaction and risk factors, All quotes are subject to the proviso that the matter does not prove unexpectedly protracted or complicated.
Stamp duty land tax or Land transaction tax is charged on a complex formula depending on price and other factors. As a guide, HM Revenue and Customs and the Welsh Revenue Authority publish calculators you can use for property in England and for property in Wales as appropriate. We can look at this for you in the individual case and provide a figure in the Report on Title.
Sale
Our role
We will:
- Considered the agreed terms for the sale of your property
- Obtain copies of the legal title to the property
- If it is a lease, review any terms of the lease relevant to the sale
- Provide to you forms you will be required to complete to give information about the property
- Obtain any additional material which may be required
- Prepare a draft Sale Contract for approval
- Collate the draft contract, the title and all relevant information into a package and supply that to the buyer’s solicitor
- Deal with any further enquiries raised by the buyer’s solicitor
- Effect exchange of contracts (at which point the purchase becomes legally binding on both sides)
- Obtain from your current mortgage lender a Mortgage Redemption Statement
- Provide a Financial Statement showing the overall sums to be paid to you after redemption of your mortgage and payment of all fees and expenses (see below)
- Respond to final completion enquiries
- Complete the sale and supply all papers to the buyer’s solicitor
Further steps are required in connection with your obtaining a mortgage. If the lender chooses to instruct separate solicitors then they will carry these steps out, and they may take on the payment of stamp duty land tax and registration. If (as is usual) we act for the lender also then we will also:
- Report to the lender on the title and transaction
- Ensure compliance with the lender’s standard requirements
- Register the mortgage along with the purchase.
If the transaction involves the grant of a new lease to the buyer, we will prepare the draft lease in consultation with you.
If the transaction involves the sale of an existing lease, the landlord’s consent may be required, in which case we will deal with the landlord to secure this.
Your role
Amongst other thing, you will need to:
- Advise us on your particular requirements and priorities
- Advise us of any characteristics of the property which would not be obvious to us from the paperwork
- Provide information in a timely manner
- Provide us with authorisation to speak to the mortgage lender
- Consider your tax position
- Execute and return to us the documents
- Arrange your move
- On the day of completion, contact the utility companies to advise them of a change of customer
- Cancel your insurance
Pricing
The cost of the sale has three main elements:
- Estate agent’s fee (plus VAT)
- Legal fee (plus VAT)
- Disbursements (outlined below)
The estate agent’s fee is a matter for you: our involvement is only to pay it from the sale proceeds. legal costs we would charge for a typical purchase transaction are set out below.
Legal costs we would charge for a typical purchase transaction are set out in a table below, as are the likely disbursements. The costing on a percentage basis takes account of the value to you, the additional time required for a larger transaction and risk factors, All quotes are subject to the proviso that the matter does not prove unexpectedly protracted or complicated.
Our charges
Our charges on a purchase or sale of residential property will typically be calculated as a percentage of the value of the price being paid in the transaction, equivalent to the higher of £2,500 and a 0.33% of the price being paid.
In the case of a mortgage, our charges will be the higher of £1,250 and 0.25% of the amount being borrowed.
Should the transaction involve any unexpected features, the additional time we spend in dealing with those would be charged by reference to the time charge referred to in our general Terms of Engagement.
VAT is charged on our fee.
Leasehold
The above charages apply, with a 20% uplift on the fee element to take account of the additional time and responsibility incurred in a transaction involving a leasehold interest.
Disbursements
- Purchase:
- Conveyancing searches in the region of £700, depending on the local authority and on the different types of search we consider necessary;
- Land Registry final search fee of £3;
- Land Registration fees (purchase). These are by reference to the price paid, on a stepped scale from £20 to £455;
- Stamp duty land tax (or land transaction tax): please see online calculators:
- SDLT calculator (England)
- LTT calculator (Wales)
- Bank transfer fees of £20 + VAT per transfer
- Sale:
- Land Registry title search fees at a minimum of £6;
- Bank transfer fees of £20 + VAT per transfer
No VAT is added to the disbursement figures above unless otherwise stated.