In accordance with SRA Transparency Guidance 2018, please find below our approach to fees and service in relation to a Leasehold Residential Sale.
What is this going to cost me?
Fees incurred by you for a Leasehold Sale are calculated on a fixed fee basis and are based on the value of the Leasehold.
What does this include?
Our fees cover all the work required to complete the sale of your leasehold property. This includes:
- Acting for you in connection with the sale
- Acting for any lender in the discharge of any existing mortgage
The legal fees are calculated on a fixed fee basis using an hourly rate. 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 which are required for the main transaction;
- This is an assignment of an existing lease and is not the grant of a new lease nor a transaction requiring an extension of an existing lease;
- 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 or information;
- No indemnity policies are required. Additional costs may be incurred if these are required.
Should any of these become apparent during the course of the transaction, your contact will advise you as soon as possible, and advise you of any cost implications.
Disbursements are expenses that are payable to third parties, such as Land Registry fees. We handle the payment of disbursements on your behalf to ensure a smoother process.
There are also certain payments which will be set out in the individual lease relating to the property
The disbursements we usually anticipate are detailed below. This is not an exhaustive list and other disbursements may apply depending on the term of the lease, and the property. We will update with you any specific fees upon receipt and review of the lease and other documents.
- Land Registry Fee £6 – £20
Normally we require a payment of £350 on account of leasehold information (see below).
Note that fees can vary greatly from property to property and can on occasion be significantly more than the ranges given above. We can only give you an accurate figure once we have sight of your specific documents.
What else will I need to consider?
The below are all payments you will need to consider, which are likely to need to be paid in addition to the fees and disbursements detailed above.
Final Balances on Ground rent and service charges:
Ground rent and service charges are likely to apply throughout the ownership of your property. We will confirm the ground rent and anticipated service charges as soon as we receive this information.
Management Company information
We will need to obtain a pack of information from your landlord / management company. The cost of this can vary from property to property and you should budget between £150 – £300 as a minimum.
Other tax payments on the Leasehold Sale
Any payment of tax relating to the sale is in addition to legal fees and disbursements, and the amount and timing of that payment is dependent on your personal tax position. Please ensure that you consider any potential additional payment required on this basis.
What happens if I change my mind and don’t want to go through with the transaction anymore?
Should you wish to terminate the transaction at any time, you will be liable for any costs and disbursements incurred to date, and will be billed for them.
Additional services and searches
The following additional services and searches are available and will be charged in addition to the fixed fee quoted to you, based on the cost of the additional search (if relevant) and an hourly rate to provide the additional service.
Additional services and searches:
- Copies of planning permissions or other installation certificates
Your contact will advise you if it is considered to be worthwhile to consider any of these additional services on a case by case basis. If possible, and if the conditions are known, this will be done before the transaction is undertaken. If the conditions are not known at the start of the transaction, you will be advised as soon as we are aware of the requirement.
How long is my transaction likely to take?
How long the sale of a Leasehold can take depends on a number of factors, for example the number of parties in a chain, and the time it takes for the leasehold information to arrive from your landlord / management company .
The average timescale for a Leasehold sale from acceptance of offer to completion is eight to ten weeks.
What can I expect from this process?
The key stages in an average Leasehold sale are:
- Taking your instructions and giving you initial advice
- Preparing and submitting draft contract papers
- Obtaining leasehold information
- Responding to enquiries from buyers solicitor
- Giving you advice on all documents and information you receive
- Sending final contract to you for signature
- Agreeing a completion date
- Exchanging contracts and notifying you that this has happened
- Effecting legal completion
- Arranging monies to be transferred to you
- Discharging any mortgage or other charges
We are dependent on information received from the counterparty’s lawyers, and can only work as fast as the information is given to us. We will keep you informed if we are experiencing delays which are likely to impact on the desired completion date of the transaction.
Who is going to do this work for me and what is their experience?
The work will be carried out by one or more of our lawyers in the Residential Conveyancing Team.