Purchase of Flat

Costs

The costs comprise two elements:

· Our legal fees for the work that we undertake, and

· Third party expenses (known as "disbursements").

Our legal fees are subject to VAT.

Disbursements may or may not be subject to VAT. Where VAT is payable, the amount and rate are stated below.

Legal Fees

Up to £500,000 £2,400 plus VAT (at 20%)

£500,001 - £750,000 £2,400 - £2,800 plus VAT (at 20%)

Over £750,000 Fee on request

In addition, we charge:

an AML/Client Onboarding Administration Fee of £30 plus VAT per person.
a Bank Transfer Fee of £30 plus VAT (at 20%) for administering each bank transfer.

Disbursements

We handle the payment of third party expenses on your behalf to ensure a smoother process. The expenses vary from property to property depending on the purchase price and the area that the property is in. They include:

Search Fees: Approximately £800 plus VAT (at 20%) eg Local Authority, Drainage and Water, Environmental etc.
HM Land Registry Registration fee: Between £100 - £500, depending on the purchase price.
Pre-completion HM Land Registry search fee: £3
Pre-completion Bankruptcy search fee: £2 per name, applicable if obtaining a mortgage.
Stamp Duty Land Tax (Stamp Duty) if the property is in England or Land Transaction Tax (Land Tax) if the property is in Wales. HMRC has a Stamp Duty calculator at https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro and the Welsh Revenue has a Land Tax calculator at https://gov.wales/land-transaction-tax-calculator. Whilst these calculators provide a guide to the Stamp Duty or Land Tax payable, the amount payable will depend on a number of factors. Given the complexity, we advise our clients to seek specific advice from an accountant or tax consultant who specialises in this as early as possible.

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 terms of the lease. We will update you on the specific fees payable to the Landlord or managing agents (and whether they include VAT) when we have received the Lease and other information from the seller's solicitors.

Anticipated Disbursements

Notice of Transfer fee: This fee is payable for notifying them of your purchase. The fee varies and is often between £50 - £200.
Notice of Mortgage fee: This is payable for notifying them of your mortgage. The fee varies and is often between £50 - £200
Deed of Covenant fee: If the Lease requires you to enter into a Deed of Covenant with the Landlord, a fee is often payable. The fee varies and is usually between £100 - £400.
Certificate of Compliance fee: If the Lease requires a Certificate of Compliance, a fee is often payable. The fee varies and is often between £100 - £300.
Share Certificate fee: You may be required to apply for a Share Certificate in a Management Company in which case a fee is often payable. The fee varies and is often between £50 and £150.

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 the lease and details of fees from the Landlord/Managing Agents.

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

What is covered

Our Legal Fees cover the work required to complete the purchase of your home, including dealing with registration at the Land Registry and the payment of Stamp Duty or Land Tax .

Our Fees assume 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.
the property is registered under a single leasehold title at the Land Registry.
the property is being sold with vacant possession.
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 any of the parties (including third parties) providing information or documentation.
no indemnity policies are required. Additional disbursements may apply if they are.
the property has the requisite Planning or Building Regulations Consents.
when purchasing with the assistance of a mortgage, we act for both you and your lender.
the property is not a new-build.
this is a purchase of an existing lease and not the grant of a new lease.
no lease extension is required as part of the purchase.
all necessary consents have been obtained for alterations.

The amount of work required can vary significantly from one transaction to another. There are many factors involved and it is only once we have spoken to you that we will have an idea of what your transaction involves. Our Legal Fees may therefore increase from those we have indicated above, for example:

if the transaction is urgent.
you request home visits, out-of-hours or weekend meetings.
there is a long chain of sales which need to be co-ordinated.
finance (other than from your lender) is being provided by third parties by way of gift or loan.

In addition, the transaction may become unduly protracted or complex involving additional work. If such a situation arises, we will inform you of this and provide revised costs information.

What we do not advise on:

Tax (including Stamp Duty or Land Tax) or financial planning,
Laws of any jurisdiction other than England and Wales.
The division of ownership and future financial arrangements (eg who will pay the mortgage, pay the outgoings etc) of the property where there is more than one buyer, other than to advise on the different types of joint ownership. We also do not prepare Deeds of Trust or Cohabitation Agreements.
Loans being provided by third parties (other than your Lender), eg by friends or family. We also do not prepare Loan Agreements between the parties concerned.

Key stages and typical timescales

Buying a home involves many stages and complexities. We recommend that you read the Government's guides entitled "How to Buy a Home" and "How to Lease". The links are:

https://www.gov.uk/government/publications/how-to-buy-a-home/how-to-buy

https://www.gov.uk/government/publications/how-to-lease/how-to-lease

We would also refer you to https://www.legalchoices.org.uk/ This website is run by legal services' regulators in England and Wales and provides independent and factual information on purchasing a home.

HOW LONG WILL MY purchase TAKE?

How long it will take from your offer being accepted until you can move in to your flat will depend on a number of factors. The average process takes approximately three months.

It can be quicker or slower, depending on such factors as:

The other parties in the chain.
Difficulties or delays in obtaining information or documentation.
A transaction in the chain falling through.
Difficulties in arranging a mortgage.
A property being under construction.
A recently-built property.
A survey report recommending further investigations prior to exchange.
Dealing with additional requirements of your lender.
Any defects in the Title to the property that require rectification prior to exchange.
The property lacking any requisite Planning or Building Regulations Consents.
Dealing with any gifts or loans from individuals eg parents, grandparents, friends etc.
Your lender is separately represented by their own solicitors.
A property that requires an extension of the lease.

Please note that this is not an exhaustive list of additional factors.

Key stages of the process

STAGE ONE: PRE-EXCHANGE

The precise stages involved in the purchase of a flat vary according to the circumstances. However, some key stages involved are

Taking your instructions and giving you initial advice on surveys etc.
Carrying out client identification and Anti-Money Laundering checks on you and on any individual making a gift or loan to you.
Checking that your finances are in place to fund your purchase and contacting the lender's solicitors if your lender is separately represented.
Writing to the seller's estate agent and solicitors to confirm that we act for you.
Receiving the contract, seller's and landlord's Information Forms and supporting documents from the seller's solicitors.
Requesting moneys on account from you and submit local and other searches.
Negotiating the contract and raising any necessary additional enquiries with the seller's solicitors.
Obtaining any further Planning or Building Regulations documentation from the seller's solicitors, if required.
Reporting to you on the contract, the documentation received from the seller's solicitors and the search results.
Dealing with any of the landlord's requirements if the Lease requires the Landlord's consent to your purchase.
If you are having a survey carried out, discussing the surveyor's report with you and making any pertinent enquiries of the seller's solicitors.
Receiving a copy of your mortgage offer and dealing with your lender's requirements.
Advising you on the legal implications of your mortgage offer.
Meeting with you and arranging for you to sign the contract.
Receiving from you the "exchange" deposit which is usually 10% of the purchase price.
Obtaining your lender's confirmation that they have no further requirements and that the mortgage advance will be released prior to completion.
Agreeing a completion date with the buyer via the estate agent.

STAGE TWO: EXCHANGE

Exchanging contracts with the seller's solicitors and notifying you that this has happened. At this point, you have contracted to buy the property on the agreed completion date.

STAGE THREE: POST-EXCHANGE/PRE-COMPLETION

Agreeing the Transfer document with the seller's solicitors and if required, sending it to you to sign and return to us in readiness for completion.
Sending you our Financial Statement with our invoice detailing the money required from you to complete your purchase and to deal with the post- completion matters.
Carrying out our pre-completion searches.
Receiving your money and the mortgage advance.

STAGE FOUR: COMPLETION

Transferring the completion money to the seller's solicitors and completing your purchase.
Completing your purchase, notifying you accordingly and advising you to collect the keys from the estate agent.

STAGE FIVE: POST COMPLETION

Receiving the Transfer document and any other relevant documents from the seller's solicitors.

Dealing with notification to the landlord of your purchase and mortgage.
Dealing with payment of Stamp Duty or Land Tax on your behalf.

Dealing with the application for registration of the purchase and mortgage at Land Registry and notifying you and your lender once your purchase and mortgage has been registered.