Property

Conveyancing - Frequently Asked Questions

• I'm buying a house, what are your costs?

  • We have a set scale of fees based on the value of the property you are selling / purchasing. For a no no-obligation quotation please complete the form below for an instant no-obligation quote.

    When purchasing a property, in addition to our legal fees there are some other charges you will need to budget for. However these are  payments to third parties which we have no control over and are broadly the same regardless of which solicitor you use.

    • Local search fees
    • Land Registry search fees
    • Land Registry fee
    • Stamp duty (if applicable)

    To give you an idea of costs, we have set out below some useful examples.

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

    Purchase of a freehold residential property at £206,984

    (based on average property price in Bolton, Oct 23).

    • Legal fee £1,100.00 plus VAT at 20% (£1,320.00)
    • Bank transfer £30.00, per transfer plus VAT at 20% (£36.00)

    Subtotal £1,356.00

    Disbursements

    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.

    • Searches, if required £235.25 plus VAT at 20% (£282.30)
    • OS Land Registry Search, per search £7.00 (no VAT)
    • Bankruptcy Search Fee, per person £6.00 (no VAT)
    • SDLT Online Submission Fee £8.00 plus VAT at 20% (£9.60)
    • Lawyer Checker £18.00 plus VAT at 20% (£21.60)
    • AML Check, Thirdfort, per person £30.00 plus VAT at 20% (£36.00)

    Subtotal £362.50

    Estimated total (excluding Stamp Duty or Land Tax – see below): £1,718.50

    Stamp Duty or Land Tax (applicable on purchase transactions only).

    This depends on the purchase price of your property. You can calculate the amount you will need to pay by using HMRC’s website or if the property is located in Wales by using the Welsh Revenue Authority’s website.

     

    Purchase of a leasehold residential property at £206,984

    (based on average property price in Bolton, Oct 23).

    • Legal fee £1,100.00 plus VAT at 20% (£1,320.00)
    • Bank transfer £30.00, per transfer plus VAT at 20% (£36.00)

    Subtotal £1,356.00

    Disbursements

    Disbursements are costs related to your matter that are payable to third parties, such as search fees. We handle the payment of the disbursements on your behalf to ensure a smoother process. 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 term of the lease. We will update you on the specific fees upon receipt and review of the lease from the seller’s solicitors.

    • HM Land Registry fee: £150.00
    • Searches, if required £235.25 plus VAT at 20% (£282.30)

    Subtotal: £432.30

    Anticipated Disbursements*

    • Notice of Transfer fee – This fee if chargeable is set out in the lease. Often the fee is between £50- £300.
    • Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease. Often the fee is between £50 and £300.
    • 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 £100 and £250.
    • Certificate of Compliance fee – To be confirmed upon receipt of the lease, as can range between £50 – £350.

    *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. You can calculate the amount you will need to pay by using HMRC’s website or if the property is located in Wales by using the Welsh Revenue Authority’s website.

    * Our fee assumes that:

    • This is a standard 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 assignment of an existing lease and is not the grant of a new lease.
    • The transaction is concluded in a timely manner and no unforeseen complication arise.
    • All parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation.
    • No indemnity policies are required. Additional disbursements may apply if indemnity policies are required.
• How long will my house purchase take?

  • We are often asked ‘how long it will take from an offer being accepted until you can move into your new home’ this depends on a number of factors and every transaction is slightly different. The average process takes between 8-12 weeks from receipt of contract papers. However factors such as the length of the chain, the circumstances of other parties and how quickly they can arrange their finances, time taken to obtain mortgage offers, surveys and search results and any queries raised along the way such as Preliminary Enquiries Before Contract could have an affect on the timescale.

    For example, if you are a first time buyer, purchasing a new build property with a mortgage in principle, it could take 10 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 3 and 6 months. In such, a situation additional charges would apply.

    Stages of the process

    The precise stages involved in the purchase of a residential property vary depending on whether the property is freehold or leasehold and also transactional circumstances. Key stages are set out below:

    Freehold Property

    • Take your instructions and give you initial advice
    • Check finances are in place to fund purchase and contact lender’s solicitors if needed
    • Receive and advise on contract documents
    • Carry out searches
    • Obtain further planning documentation if required
    • Make any necessary enquiries of seller’s solicitor
    • Give you advice on all documents and information received
    • Go through conditions of mortgage offer with you
    • Send final contract to you for signature
    • Agree completion date (date from which you own the property)
    • Exchange contracts 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 Duty/Land Tax
    • Deal with application for registration at Land Registry

    Leasehold Property

    • Take your instructions and give you initial advice
    • Check finances are in place to fund purchase and contact lender’s solicitors if needed
    • Receive and advise on contract documents
    • Carry out searches
    • Obtain further planning documentation if required
    • Make any necessary enquiries of seller’s solicitor
    • Give you advice on all documents and information received
    • Go through conditions of mortgage offer
    • Send final contract to you for signature
    • Draft Transfer
    • Advise you on joint ownership
    • Obtain pre-completion searches
    • Agree completion date (date from which you own the property)
    • Exchange contracts 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 Duty/Land Tax
    • Deal with application for registration at Land Registry
• What is meant by exchange of contracts?

  • The law of England & Wales says that a contract relating to land/property must be in writing so the contract is a document that sets out the terms of the transaction. After the seller and the buyer have signed their own contracts they will then be exchanged between the solicitors. This is when the contract becomes legally binding and neither party can back out without suffering loss.

• What are searches?

  • Searches will identify any matters which you ought to know about that might affect your decision to proceed with the transaction.  The searches we generally carry out are:

    Local land charges search 

    A search of the local land charges register shows matters such as compulsory purchase orders, tree preservation orders, planning enforcement notices and financial charges registered against a property. You should note that the search result provides a snapshot of the register on the date of the search. Local land charges registered after the date of the search will still bind a property.

    Local authority search (including any optional and additional enquiries)

    A local authority search reveals important information about a property, such as planning permissions and building regulation consents, proposals for road schemes, environmental and pollution notices and whether any part of the property is registered as common land or as a town or village green. A local authority search only reveals matters that affect the property being searched against. It will not disclose matters that affect neighbouring properties.

    Drainage and water enquiries

    The replies to drainage and water enquiries show whether a property is connected to the mains water supply and mains drainage. The replies may also show the location of public sewers within the boundary of a property and other such matters that may restrict development.

    Environmental search 

    If a local authority determines that land is contaminated, and the party who caused the contamination cannot be found, the current owner or occupier of the land may be required to remedy the contamination. This can be an expensive process, so it is important to assess the risk of land being contaminated before committing to buy a property. An environmental data search can be used to establish the risk of land being contaminated, by collating information from regulatory bodies, floodplain data and a review of current and historic land uses. This type of search is also known as a “desktop search”. An environmental data search does not include a site visit or testing of soil or groundwater samples.

    Coal mining search (where the property is in a historic mining area)

    A coal mining search provides details of past, present and future coal mining activity at a property. The search also indicates if there are mine shafts on the property and whether any mining activities may cause subsidence.

    Chancel repair search 

    A chancel repair search shows whether the owner of a property may be liable to contribute towards the cost of repairs to the chancel of a parish church. A Transitional Provisions Order from 2003 effectively means that ALL chancel repair obligations will cease on transfer after the 13th October 2013 unless the chancel of any Church has noted their interest in any particular property or land with the Land Registry before this date.

• What is meant by completion?

  • This is the final stage of the transaction when funds are transferred and keys are released.

• When do I get the keys?

  • Keys will be released to the buyer when ownership of the property has passed over on completion, usually via the agents.