What are my legal fees going to cost?
Our fees cover all of the work required to complete the purchase of your property, including dealing with registration at the Land Registry and dealing with the payment of Stamp Duty Land Tax (SDLT) if the property is in England, or Land Transaction Tax (LTT), if the property is in Wales.
Our costs for acting in a freehold residential purchase will generally range upwards from £850 plus VAT. Our costs for acting in a leasehold residential purchase will range from £1,000 plus VAT. Over and above this there are various expenses (sometimes called disbursements) which are charges related to your matter that are payable to third parties (not Bower Bailey), such as Land Registry fees. We handle the payment of these expenses on your behalf to ensure a smoother process.
Our precise costs and expenses will depend on the value and location of the property you are buying, and, in certain circumstances, your proposed source of funds. An illustration of our total costs and other expenses on a freehold residential property purchase where the purchase price is £450,000 and our costs are say £1,450 plus VAT is set out below:
| Costs re freehold purchase | £1,450.00 | |
| VAT at 20% | £290.00 | |
| Costs re SDLT/LTT Return Form | £75.00 | |
| VAT at 20% | £15.00 | |
| Costs re Telegraphic Transfer | £40.00 | |
| VAT at 20% | £8.00 | |
| Costs re Identity Verification | £40.00 | |
| VAT at 20% | £8.00 | |
| Costs re Source of Funds Checks | £40.00 | |
| VAT at 20% | £8.00 | |
| Expenses | ||
| Local Search Fee | £112.00 | |
| VAT at 20% | £22.40 | |
| Land Registry Fees (for electronic registrations) | £150.00 | |
| Bankruptcy and Land Registry Searches (estimated) | £10.00 | |
| VAT at 20% | £2.00 | |
| TOTAL | £2,270.40 | |
Local Search fees can vary depending on the local authority or search provider. Land Registry fee will depend on various factors. The SDLT or LTT will depend on the purchase price of your property. You can calculate the amount you will need to pay by using the relevant on-line calculator by clicking here for SDLT or here for LTT. If you speak to one of our experienced lawyers they will be able to tell you what the Land Registry fee is likely to be and also tell you what details you will need to have to hand before trying the SDLT or LTT calculator.
There will be additional costs if you are buying with a Help to Buy equity loan (£200.00 plus VAT, new build purchases only), a Help to Buy ISA or a Lifetime ISA (£50.00 plus VAT per ISA) or if your mortgage lender issues their mortgage instructions to us through a mortgage lender panel management portal (£60 plus VAT). There may also be additional expenses if we have to undertake a drainage enquiry (£30.00 plus VAT) or an environmental search (£58.50 plus VAT), If you are buying a new build property there will also be a document fee charged by the developer which will range from £100 plus VAT. Again, if you speak to one of our experienced lawyers they will be able to tell you the precise document fee of specific developers.
If you are buying a leasehold property there may be additional expenses which should be set out in the lease and include a Notice of Transfer fee, a Notice of Charge fee (if you are taking out a mortgage) and a Certificate of Compliance fee (if there is a restriction, which we can explain to you). There may also be a Deed of Covenant fee payable which can be difficult to estimate but is often between £50 and £250. These additional expenses are all payable to either the landlord or the property management company for the property. As with other expenses, you pay the monies to us and we handle the payment on your behalf to ensure a smoother process.
Factors which may affect and increase our costs include if the legal title is defective, if some or all of the title is unregistered, if building regulations or planning permissions have not been obtained or there is a delay in receiving key documents or if you are buying a leasehold property that requires an extension of the lease.
How long will my property 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. On average it takes between 12 – 18 weeks. It could take longer if there is a chain (a line of buyers and sellers all involved in linked transactions). If you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 15 – 24 weeks.
Stages of the property purchase process
The precise stages involved in the purchase of a residential property vary according to individual circumstances. However, if you click here you will see our Residential Purchase/Sale Overview or here for our Residential New Build Purchase Overview which set out the key stages together with our Key Word Explanation.
