fbpx
Chevron pointing up icon

Buying a Leasehold Property

Fees Involved When Buying A Leasehold Property

Our fixed fees cover all of the work required to complete buying a leasehold property, 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.

Our fees and disbursements when buying a leasehold property:

Legal fees:

Our fees will depend on the value of the leasehold purchase and will range from £950.00 to £2,295.00 plus VAT*

Search fees:

Land Registry Priority Search fee – £3.00

Bankruptcy Search fee (if obtaining a mortgage) – £2.00 per name

Search fees (includes Local Authority, drainage, environmental, Chancel, flood and planning searches) – £350.00 approximately

HM Land Registry fee:

This mandatory cost is set by the Land Registry and depends on the value of the leasehold purchase. The fee will range from £20.00 to £910.00.

Electronic Money Transfer fee:

£15 plus VAT per payment.

VAT:

You will only pay VAT on our legal fees and the cost to make an electronic money transfer.

Referral fees:

For some transactions, we do pay referral fees. The amount of any referral fee will be disclosed to you at the commencement of the transaction. To be clear, these referral fees are paid by us to third parties and not by you.

What are disbursements:

These are costs related to your house purchase that are payable to third parties, such as Land Registry fees. We handle the payment of the disbursements on your behalf to ensure there is no delay in your purchase.

When buying a leasehold property, you should be aware that there may be certain additional disbursements which will be out in the individual Lease relating to the property.

The additional disbursements which we anticipate may possibly apply are set out below. Your property lawyer will update you on additional disbursements fees that you may incur upon receipt and review of the Lease from the Seller’s lawyer.

  1. Notice of Transfer.
  2. Notice of Charge fee – This fee applies if the property is to be mortgaged.
  3. Deed of Covenant fee.
  4. Certificate of Compliance fee.

You should also be aware that ground rent and service charges are likely to apply throughout your ownership of the property. We will confirm the ground rent and the anticipated service charge as soon as we receive this information.

Will I have to pay Stamp Duty and Land Tax?:

The rate of Stamp Duty or Land Tax that you will pay will depend on the purchase price of your property, and your property lawyer will advise you of what this is. There is also a tax relief if you are a first time buyer and again, your property lawyer will provide you with full information.

You can calculate the amount of stamp duty you will need to pay using the HMRC calculator

How long will buying a leasehold property take?

How long it will take from your offer being accepted until you can move into your house will dependent on a number of factors including whether you are part of a chain. There are often external factors which can delay the process and often the major issue is that exchange of Contracts cannot take place until all parties in the chain are ready. Obviously, the time it takes will depend on the complexity of the matter and the number of parties involved.

Extending a Lease:

If you are buying a leasehold property that requires an extension of the Lease this can take significantly longer and you would incur other costs if this is the case.

Can you help me extend my Lease:

Yes. Osbornes have expert Lease extension solicitors who can guide you through extending your Lease. To be an eligible leaseholder and able to extend your Lease, you must own a long Lease and have owned it for the past two years.

It is possible to extend your Lease at the same time you are buying your leasehold property. This is achieved by the existing leaseholder (the Seller of the property) beginning the process and serving what is called a Section 42 Notice on the freeholder and by assigning the benefit of the notice to you as the Purchaser. This notifies the Landlord of an intention to extend the Lease and that you will benefit from this.

How much does a Lease extension?:

The cost of extending a Lease is separate to that of purchasing your property. In addition to the fees for the purchase of your property, you will incur legal costs for extending your Lease and you will also pay a premium to the freeholder for the right to extend your Lease.

How much this premium is will depend on a number of factors including the current length of the Lease, the relative value of the property with a short lease and a long lease and the amount of ground rent payable .

Once you have provided more information to our Lease Extension lawyers, we will be happy to give you a a complete breakdown of our costs and we can recommend you to an appropriate surveyor who will be able to advise you as to the likely premium and negotiate it with your Landlord.

We would always recommend that you use both a lawyer and a surveyor who specialise in Lease Extensions.

Our team would be delighted to speak with you and answer any questions.

The stages involved when buying a leasehold property:

The stages involved in buying a leasehold property will vary according to the circumstances and your property lawyer will advise you of this when all the facts are known to them. We will also be in contact with providing regular updates on the progress of your property purchase.

Below are the standard stages of buying a leasehold property:

  1. Take your instructions and give you initial advice.
  2. Check finances are in place to fund purchase and contact Lender’s solicitors if needed.
  3. Receive and advise on Contract documents.
  4. Carry out searches.
  5. Obtain further planning documentation if required.
  6. Make any necessary enquiries of Seller’s solicitor.
  7. Give you advice on all documents and information received.
  8. Go through conditions of mortgage offer with you.
  9. Send final Contract to you for signature.
  10. Draft Transfer.
  11. Advise you on joint ownership.
  12. Obtain pre-completion searches.
  13. Agree completion date (date from which you own the property).
  14. Exchange Contracts and notify you that this has happened.
  15. Arrange for all monies needed to be received from Lender and you.
  16. Complete purchase.
  17. Deal with payment of Stamp Duty / Land Tax.
  18. Deal with application for registration at the Land Registry.

*Our fee assumes that:

This is the standard transaction and 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. The maximum fee shown is for a purchase price of a leasehold property between £1,400,000.00 and £1,500,000.00. Please contact us for a quote if the purchase price is above £1,500,000.00

  1. This is the assignment of an existing Lease and is not the grant of a new Lease.
  2. The transaction is concluded in a timely manner and no unforeseen complication arise.
  3. All parties to the transaction are co-operative, and there is no unreasonable delay from third parties providing documentation.
  4. No indemnity policies are required. Additional disbursements may apply if indemnity policies are required.

Our Expert Leasehold Property Lawyers

Buying a Leasehold, Buying a Leasehold PropertyBuying a Leasehold, Buying a Leasehold PropertyBuying a Leasehold, Buying a Leasehold Property
Simon Nosworthy
Partner

Head of Residential Property, Simon has specialised in property law since qualification in 2001. He provides a high quality service to clients moving home or requiring advice on any aspect of residential property.

Simon believes in offering a friendly, approachable and responsive service to both his clients and their agents keeping them updated and involved at all times.
Maria Elliot
Associate Solicitor
Maria specialises in residential property work. Her workload varies from straight forward sales and purchases to complex land transactions and also includes some probate work.

As a member of the Law Society’s Property Law Section and the Association of Women Solicitors, Maria is always up to speed with property law developments.
Emily Lund
Associate Solicitor

Emily specialises in residential property transactions, including sales and purchases of freehold and leasehold properties, re-mortgages, transfer of equity and unregistered land.

Emily is currently on maternity leave
Buying a Leasehold, Buying a Leasehold PropertyBuying a Leasehold, Buying a Leasehold PropertyBuying a Leasehold, Buying a Leasehold Property
Florence Arbuthnott
Associate Solicitor

Florence is an Associate Solicitor and has many years’ experience in property law, advising on all aspects of property transactions and management, including leasehold enfranchisement.
Rachael Bewick
Solicitor

Rachael graduated with a First Class Bachelor of Laws degree in 2013 and completed the LPC course with BPP University in April 2016 for which she was awarded a Distinction. Rachael joined Osbornes in September 2016 after completing her Training Contract with a firm based in Camden Town. Rachael qualified as a solicitor in August 2016.

Yasmin Heidary
Solicitor

Yasmin studied Law at Queen Mary University of London, graduating in 2010 with a 2:1. She went on to complete the LPC at BPP Law School, Holborn.
Yasmin joined Osbornes in December 2014 and qualified as a solicitor in September 2018.

Speak to a Lawyer

Latest Property Law News


Osbornes Law Osbornes Law @OsbornesLaw If you are spending time on your bike during lockdown, it is important you are aware of the #HighwayCode for… https://t.co/LJBwESNU3o 10 weeks ago
Osbornes Law Osbornes Law @OsbornesLaw @angelaM11 in the Housing and Social Care team @OsbornesLaw suggests contacting your local authority if you have lo… https://t.co/8tMfJev81t 10 weeks ago
Osbornes Law Osbornes Law @OsbornesLaw Housing and Social Care solicitor @mc_alexm outlines your rights during the #COVID19 pandemic when asked to leave y… https://t.co/04rKbNc0aA 10 weeks ago
Osbornes Law Osbornes Law @OsbornesLaw @willfordosblaw partner in the Housing and Social Care team @OsbornesLaw on the impact of Coronavirus on public fun… https://t.co/GaC5jYjvKJ 10 weeks ago
Osbornes Law Osbornes Law @OsbornesLaw Staff @OsbornesLaw got creative last Sunday whilst taking part in the #TwoPointSixChallenge in support of… https://t.co/hgTp2JqSN6 10 weeks ago
Osbornes Law Osbornes Law @OsbornesLaw Suzanna Baker, solicitor in the Private Client team @OsbornesLaw explores the question ‘How can I help my father wi… https://t.co/lv3hixYMbl 10 weeks ago
Osbornes Law Osbornes Law @OsbornesLaw RT @denisenottm: Fantastic - congratulations @swaine_laura Amazing job for @NHSCharities 10 weeks ago
Osbornes Law Osbornes Law @OsbornesLaw Congratulations to @swaine_laura who completed her @Worldin1Day challenge yesterday for @NHSCharities . She even c… https://t.co/pNI8KTlbDL 10 weeks ago
Osbornes Law Osbornes Law @OsbornesLaw An update from our cyclist, @swaine_laura “It’s sore, it’s painful, but I’m on track to finish!” 🚴🏼‍♀️ Laura is cyc… https://t.co/w8x8xk41yN 10 weeks ago
Osbornes Law Osbornes Law @OsbornesLaw Leasehold Reform and COVID 19. Amber Larner-Bird, solicitor in the Property Law team @OsbornesLaw explores the ques… https://t.co/QdYriW7gGu 10 weeks ago
Osbornes Law Osbornes Law @OsbornesLaw Coronavirus: Government introduces further restrictions on recovery of rent by Commercial Landlords. https://t.co/fWRHuEuEA7 10 weeks ago
Osbornes Law Osbornes Law @OsbornesLaw @SKightley managing partner @OsbornesLaw explores the question of why cyclists need liability insurance, in… https://t.co/nn56J79jBb 10 weeks ago

Introducing Your Property Law Legal Team

Osbornes has an experienced team of specialist property-law lawyers to assist with your case / situation

arrow pointing up

Camden

Livery House, 9 Pratt Street, London NW1 0AE
Tel: 020 7485 8811 Fax: 020 7485 5660
DX Number 57053 Camden Town

Hampstead

28A Hampstead High Street, Hampstead, NW3 1QA
Tel: 020 7485 8811 Fax: 020 7485 5660

Contact a Lawyer

Enter your details below to receive a call from Osbornes:


Trustpilot

Speak To A Lawyer

Request Callback