Price Transparency Guidance
Purchase of a freehold or leasehold 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 (SDLT or Stamp Duty).
Lu Oliphant’s fees and disbursements
- Legal fees £ £1,500 to £2,500 + VAT (average around £1,700 + VAT)
- HMRC Agent fee for preparing and submitting SDLT Return £100 + VAT
Referral fees are rarely paid to third parties, but occasionally 10% of our quoted fees will be paid to an agent or broker as an introduction/referral fee. Any such referral fee will be paid from out of our own fees so there will be no economic consequences to you as our client.
Disbursements are costs related to your matter that are payable to third parties, such as search fees. We handle the payment of the disbursements on your behalf to ensure a smoother process. 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 term of the lease. We will update you on the specific fees upon receipt and review of the lease from the seller’s solicitors.
- Search fees £300-600 + VAT
- HM Land Registry fee £40-910 (depending on the value of the property)
- Electronic money transfer fee £18 (inc VAT) per transfer
- Notice of Transfer fee – This fee if chargeable is set out in the lease. Often the fee is between £50 and £200.
- Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease. Often the fee is between £50 and £200.
- Deed of Covenant fee – This fee is provided by the management company for the property and can be difficult to estimate. Often it is between £50 and £300.
- Certificate of Compliance fee – To be confirmed upon receipt of the lease, as can range between £50 and £200.
Estimated total: £2,500 to£5,600
(This does not include SDLT – see below)
Please note that the above figures are very rough estimated figures for reference, please contact us directly for a more accurate fee estimate once we have considered your specific transaction.
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 your specific documents.
For leasehold properties, 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 (SDLT) on purchase
How much you pay will depend on the purchase price of your property, and whether or not the purchase is for a second property (which includes property owned outside of the UK). You can calculate the amount you will need to pay by using HMRC’s website at https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro.
We are not permitted to give specific tax advice as we are not regulated by the FCA. Should you have any query regarding tax planning, including SDLT, you must obtain independent advice from a professional tax advisor authorised and regulated by the FCA
How long will my house purchase take?
How long it will take from your offer being accepted until you can move in to your property will depend on a number of factors. However, the average process takes between 4-8 weeks.
It can be quicker or slower, depending on the situation involved. For example, if you are a buyer, purchasing a property without a related sale and without requiring a mortgage and the seller has no related purchase, it could take 4 weeks. However, if you are buying a property subject to extensive covenants and conditions, or if the seller has a related purchase which encounters delays, or if the seller has tenants who need to move out before completion, or if you are buying a leasehold property that requires an extension of the lease this can take significantly longer, between 2 and 4 months or longer, as the timing in such a situation would be entirely outside of our control. In such a situation additional charges would apply.
Stages of the process
The precise stages involved in the purchase of a residential property vary according to the circumstances. However, the following key stages are the ones which are most likely to occur:
- Taking your instructions and giving you initial advice;
- Checking that finances are in place to fund the purchase and contacting the lender’s solicitors, if needed;
- Receiving and advising on contract documents;
- Carrying out searches;
- Obtaining further planning documentation, if required;
- Making any necessary enquiries of the seller’s solicitor;
- Giving you advice on all documents and information received;
- Going through the conditions of the mortgage offer with you, if relevant;
- Sending the final contract to you for signature;
- Agreeing the completion date (the date from which you own the property);
- Exchanging contracts and notifying you that this has happened;
- Arranging for all monies needed to be received from lender and you, if relevant;
- Completing the purchase;
- Dealing with the payment of SDLT;
- Dealing with the application for registration at the Land Registry.
Our fee assumes 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, issues complicating the AML position requiring us to carry out additional work, the presence of tenants at the property who refuse to leave, or the preparation of additional documents ancillary to the main transaction;
- the transaction is concluded in a timely manner and no unforeseen complications arise which would prevent this;
- 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.
- We will not take part in commercial negotiations on the terms of the transaction
- The lender (if applicable) will not raise arduous and extensive enquiries
In the event that there are any complications or additional work, such additional work will be charged on a timed basis. The hourly rate of our partners is £260.00 + VAT