Purchasing a Leasehold Property
Our fixed 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.
Our fees and disbursements:
Our fees will depend on the value of the property you are purchasing and will range from £950.00 to £2,295.00 plus VAT*
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 property you are purchasing. The fee will range from £20.00 to £910.00.
Electronic Money Transfer fee:
£15 plus VAT per payment.
You will only pay VAT on our legal fees and the cost to make an electronic money transfer.
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.
- Notice of Transfer.
- Notice of Charge fee – This fee applies if the property is to be mortgaged.
- Deed of Covenant fee.
- 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 my leasehold property purchase 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 the purchase of a 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:
- 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.
- 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 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
- 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.
Our Expert Property Lawyers
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 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 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
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 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 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.