Rosenberg & Co
Taking the mystery out of moving
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Purchase of House

Purchase of House

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                        £2,000 plus VAT (at 20%)

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

Over £750,000                          Fee on request

In addition, we charge:

  1. an AML/Client Onboarding Administration Fee of £30 plus VAT per person.

  2. 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.

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 freehold 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 anyone providing documentation.

  • no indemnity policies are required. Please note that 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.

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 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 guide entitled "How to Buy a Home". The link to this is at: https://www.gov.uk/government/publications/how-to-buy-a-home/how-to-buy

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 house 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.

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 house 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, Title documentation, the seller's Information Forms and supporting documents from the seller's solicitors.

  • Requesting money on account from you and submitting 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.

  • 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.

  • Paying the Stamp Duty or Land Tax on your behalf.

  • Applying for registration of your purchase (and mortgage) at the Land Registry and notifying you and your Lender once your purchase (and mortgage) has been registered.