Residential Property Transactions – Fees and Charges
The best way of obtaining an accurate quotation for the fees and charges involved in residential property transactions is to contact us. However, if you just want an initial indication of cost and more information about what is involved in the process, the following should assist you.
In the illustrations below, the level of our fee quoted assumes that:
a. this is a standard transaction and that no unforeseen matters arise including for example (but not limited to) a defect in the property title which requires remedying prior to completion or the preparation of additional documents ancillary to the main transaction.
b. for leasehold properties there will be the assignment of an existing lease and is not the grant of a new lease
c. the transaction is concluded in a timely manner and no unforeseen complication arise.
d. all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation.
e. no indemnity policies are required. Additional disbursements may apply if indemnity policies are required.
Should unforeseen matters arise during your transaction you will be advised as soon as possible about any additional fees which will apply.
We must comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and our professional rules regarding money laundering and proceeds of crime. In order to comply with these requirements, we need to obtain evidence of our client’s identity and that of other relevant people involved in each property transaction as soon as is practicable. We will then undertake electronic verification of identity documents provided as evidence of identity. The cost of these checks is £9.42 + VAT per person for each electronic verification check undertaken.
We may also undertake electronic checks on the “Source of Funds” used for each purchase transaction. These checks cost £6.28 + VAT per person per transaction. An additional £6.28 + VAT will be payable for electronic checks undertaken if a gift from a third-party is included as Source of Funds. Checks on Companies and checks on persons living outside of the UK will be quoted for on an individual basis. All electronic check costs will be included in our quotation.
VAT will be calculated at the prevailing rate at the time the transaction completes (currently 20%).
Please note that certain HM Land Registry Fees increased with effect from 31 January 2022.
VSH Law fees are correct as at 31 May 2024. Quotes received prior to this date may vary.
Search fees are correct as at 10 May 2024. Quotes received prior to this date may vary.
Electronic identity/Source of Funds check costs are correct for quotes issued after 22 August 2024. Quotes received prior to this date may vary.
Search fees in respect of mortgage lender requirements are correct as at 5 May 2023.
Purchasing a Residential Property
Our 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.
We calculate our fees on the basis of the value of the purchase transaction:
Up to £250,000 £1,050.00 + VAT VAT
£250,000 – £500,000 £1,300.00 + VAT
£501,000 – £750,000 £1,700.00 + VAT
£750,001 – £1,000,000 £2,200.00 + VAT
£1,000,001 + Fee calculated as 0.3% of purchase price + VAT
We charge additional supplements to reflect the complexity of work required in certain circumstances:
Mortgage work + £184.00 + VAT
Unregistered land + £200.00 + VAT
Freehold Management Company requirements + £250.00 + VAT
New Build Property + £350.00 + VAT
Shared Ownership + £250.00 + VAT
Therefore, based on an average purchase price of £270,000, our estimated fees for a standard transaction and other charges payable would be:
Our fees and disbursements
Legal fee (including mortgage work) £1,484.00 + VAT
Search fees £204.83 + VAT
Land Registry search fee £8.00 + VAT
HM Land Registry fee £330.00
Electronic money transfer fee £30.00 + VAT
Estimated total: £2,402.20 (inc. VAT of £345.37)
Disbursements are costs related to your matter that are payable to third parties, such as Land Registry fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.
Land Registry Fees are dependent on the value of the transaction. You can obtain more information here. There are some useful examples to guide you on the linked page.
Purchasing a Leasehold Property
If the property you are buying is Leasehold, we charge a fee of £350.00 + VAT for dealing with the additional work involved. On top of our fees, there will be additional fees* chargeable, which are usually predetermined in the lease or by a property management company:
- Notice of Transfer fee – this fee will be set out in the lease
- Notice of Charge fee (if the property is to be mortgaged) – this fee will be set out in the lease
- Certificate of Compliance fee – to be confirmed upon receipt of the lease
- Deed of Covenant fee – This fee is provided by the management company for the property and can be difficult to estimate as they vary widely
*These fees vary from property to property and can on occasion be significant. We can give you an accurate figure once we have sight of the specific documents relating to the property.
You should also be aware that ground rent and service charge are likely to apply throughout your ownership of the property. We will confirm the ground rent and the anticipated service charge as soon as this we receive this information.
Stamp Duty or Land Tax (SDLT) – all purchases including leasehold
The amount of SDLT you pay depends on the purchase price of your property. You can calculate the amount you will need to pay by using HMRC’s website or if the property is located in Wales by using the Welsh Revenue Authority’s website here.
Stages of the process
The precise stages involved in the purchase of a residential property vary according to the circumstances. However, we have set out the main stages involved here.
How long will my house 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 and particularly the condition of the housing market at the time your purchase commences. Previous experience is that the process generally takes an average of 8-12 weeks but it can be quicker or slower, depending on the parties in the chain. For example, if you are a first time buyer, purchasing a new build property with a mortgage in principle, it could take 8 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 3 and 6 months. In such a situation, additional charges would apply for agreeing an extension of the lease. At present, due to the Covid-19 pandemic and the end of the Stamp Duty Land Tax holiday in March 2021, transactions are taking much longer than normal for a variety of reasons. Recent reports are that the average transaction length can be 5 months. We will do everything we can to get your transaction to completion within as short a timescale as possible but many factors are out of our hands so we would ask for your patience.
Help to Buy Schemes
There are additional fees on top of standard purchase fees when you are purchasing under a Help to Buy Scheme:
Help to Buy £125.00 + VAT
Help to Buy (ISA) £50.00 + VAT
Help to Buy (Loan) £125.00 + VAT
Irrespective of the type of Help-to-Buy scheme, we charge an additional £150.00 + VAT if the property is leasehold under a Shared Ownership scheme.
Selling a Residential Property
Our fees cover all of the work required to complete the sale of your home.
We calculate our fees on the basis of the value of the sale transaction:
Up to £250,000 £850.00 + VAT
£250,001 – £500,000 £1100.00 + VAT
£501,000 – £750,000 £1,500.00 + VAT
£750,001 – £1,000,000 £2,000.00 + VAT
£1,000,001 + Fee calculated as 0.3% of sale price + VAT
Therefore, based on an average sale price of £280,000 our estimated fees for a standard transaction and other charges you would pay would be:
Our fees and disbursements
Legal fee £1,100.00 + VAT
Discharging a mortgage £100.00 + VAT
Electronic money transfer fee £30.00 + VAT
Copy title documents from HMLR £13.00 + VAT
Estimated total: £1,491.60 (inc. VAT of £248.60)
Help to Buy Redemption £200.00 + VAT (add to the above total if relevant)
Disbursements are costs related to your matter that are payable to third parties, such as for obtaining copy title documents from HM Land Registry. We handle the payment of the disbursements on your behalf to ensure a smoother process.
If the property you are selling is Leasehold, we charge a fee of £350.00 + VAT for dealing with the additional work involved. You should also note that some landlords/managing agents also charge a fee for providing us with information, which can be several hundred pounds. We will only be able to confirm whether a fee is payable and how much it is once we have made initial contact with the landlord/managing agent.
Stages of the process
The precise stages involved in the selling of a residential property vary according to the circumstances. However, we have set out the main stages involved here.
Remortgaging your Residential Property
Our fees cover all of the work required to complete the remortgage of your residential property, including Equity Release/Lifetime Mortgage products.
We provide a fixed legal fee for remortgages, irrespective of the value of the property/mortgage. Our estimated fees would be:
Our Fees and Disbursements
Legal fee (includes mortgage discharge) £900.00 + VAT (minimum fee, please ask for a quotation as fees are based on the market value of the property)
Electronic money transfer fee £30.00 + VAT
Search fees £204.83 + VAT
Copy title documents from HMLR £9.00 + VAT
Land Registry search fee £8.00 + VAT
Estimated total: £1,382.20 (inc VAT = £230.37)
If the property you are remortgaging is Leasehold, we charge a fee of £350.00 + VAT for dealing with the additional work involved. On top of our fees, there will be additional fees* chargeable, which are usually predetermined in the lease or by a property management company:
- Notice of Transfer fee – this fee will be set out in the lease
- Notice of Charge fee (as the property is to be mortgaged) – this fee will be set out in the lease
- Certificate of Compliance fee – to be confirmed upon receipt of the lease
- Deed of Covenant fee – This fee is provided by the management company for the property and can be difficult to estimate as they vary widely
*These fees vary from property to property and can on occasion be significant. We can give you an accurate figure once we have sight of the specific documents relating to the property. You should also note that some landlords/managing agents also charge a fee for providing us with information, which can be several hundred pounds. We will only be able to confirm whether a fee is payable and how much it is once we have made initial contact with the landlord/managing agent.
Land Registry Fees are dependent on the value of the transaction. You can obtain more information here. There are some useful examples to guide you on the linked page.
What’s involved in a Remortgage?
When you instruct us, we obtain your title deeds (if there are any) or a copy of the title registration from HM Land Registry and check that the title will provide your lender with good security for the new mortgage.
Most lenders will accept a Search Indemnity Insurance being put in place, which means that we don’t have to carry out any searches. However, this varies from lender to lender so we will discuss your lender’s particular requirements with you.
The next step is for us to ask your lender for a redemption statement for your current mortgage lender, if you have one.
We will receive a copy of your mortgage offer from your new lender and will then report to you on the terms and conditions of the mortgage before asking you to sign the mortgage deed. Any issues which we have discovered when investigating your title will be reported to your new lender at this stage as well as any other information we are required to disclose to them.
After your new lender has confirmed that they are prepared to proceed with your new mortgage and we receive your signed mortgage deed we can set a date for completion. At this stage we will request a final redemption figure from your existing lender, if you have one, carry out any final searches that are needed (such as bankruptcy searches) and provide you with a final completion statement.
We can then apply for draw-down of your new mortgage advance and the date for completion of your remortgage will be fixed. On completion day, we will discharge any existing mortgage(s) you are replacing and send any balance due to you from the mortgage advance.
Finally, we apply to HM Land Registry to remove any charge that your old lender had registered against your title and register a new charge on behalf of your new lender. We will then send a copy of the updated property title to you for your records.
How long will my Remortgage take?
How long it will take from receiving a mortgage offer from your lender until your remortgage completes will depend on a number of factors. Previously, the average process would take 4-8 weeks, but it can be quicker or slower, depending on the lender’s requirements for information. This process has been affected by the Covid-19 pandemic and so you should allow for a longer time frame when planning the timing of your remortgage.
Transfers of Equity
Our fees cover all of the work required to transfer either the whole or part of the ownership of your property to someone else residential property.
We provide a fixed legal fee for transfers of equity, irrespective of the value of the property. Our estimated fees would be:
Our Fees and Disbursements
-
Legal fee £600.00 + VAT
- Notice of Transfer fee – this fee will be set out in the lease
- Notice of Charge fee (if the property is to be mortgaged) – this fee will be set out in the lease
- Certificate of Compliance fee – to be confirmed upon receipt of the lease
- Deed of Covenant fee – This fee is provided by the management company for the property and can be difficult to estimate as they vary widely
Search fees £11.00 + VAT
Land Registry search fee £8.00 + VAT
Copy title documents from HMLR £6.00 + VAT
Estimated total: £750.00 (inc. VAT = £125.00)
If you are remortgaging at the same time as transferring equity, our fixed fees start at £800 + VAT (same lender) or £1,050 + VAT (different lenders). These are our minimum fees, please ask for a quotation as fees are based on the market value of the property.
We charge additional supplements to reflect the complexity of work required in certain circumstances:
Mortgage work + £184.00 + VAT
Unregistered land + £200.00 + VAT
If the property you are transferring equity in is Leasehold, we charge a supplementary fee of £350.00 + VAT for dealing with the additional work involved. On top of our fees, there will be additional fees* chargeable, which are usually predetermined in the lease or by a property management company:
*These fees vary from property to property and can on occasion be significant. We can give you an accurate figure once we have sight of the specific documents relating to the property. You should also note that some landlords/managing agents also charge a fee for providing us with information, which can be several hundred pounds. We will only be able to confirm whether a fee is payable and how much it is once we have made initial contact with the landlord/managing agent.
Land Registry Fees are dependent on the value of the transaction. You can obtain more information here. There are some useful examples to guide you on the linked page.
What’s involved in a Transfer of Equity?
A Transfer of Equity often takes place alongside a remortgage, for instance where a divorcing couple have agreed that one party will buy the other out of their ownership of the property by raising a new mortgage in their own name.
The process is largely the same as for a Remortgage but we also produce a Transfer Deed which includes details of the outgoing and/or incoming property owners and whether any “consideration” (payment) is being made as part of the transfer. The Transfer Deed will be signed by all parties.
On completion of the Remortgage/Transfer of Equity the Transfer Deed will be submitted to HM Land Registry so that the property title can be updated.
Identification
In a situation where one property owner is being removed from the title of the property there is a potential for a “conflict of interest”, which is why we will only ever act for one party in such a transaction. The property owner being removed from the title of the property will need to seek independent legal advice elsewhere at their own expense or provide us with an “ID1 Form”, again at their own expense. The ID1 Form is necessary to evidence the identity of the party we are not acting for when we submit our application for registration with HM Land Registry. More information on the requirements for ID1 Forms is available here.
How long will my Transfer of Equity take?
How long it will take until your transfer of equity completes will depend on a number of factors. The average process takes 4-8 weeks but it can be quicker or slower, depending on the other parties to the transaction and any requirements of the lender if there is a remortgage. The timing of your transaction may be impacted by lenders taking longer to respond, due to the Covid-19 pandemic.
