Cost of Buying Your Property
The aim of this section is to help clients have an understanding of what the costs may be for a particular transaction and assist them with making an informed choice about which legal services provider to engage.
The prices quoted here are estimates and intended to be used as a guide only and will dependant on the value of the property. If you would like a tailored quote/estimate that is specific to your exact situation then please contact us by phone or email and we will provide you with a detailed quote of the likely costs involved for your matter. Once this personalised quote has been accepted by you it will be formally confirmed in our client are letter and Terms and Conditions if Business.
Any reference to VAT is calculated at the prevailing standard rate for goods and services, currently 20%.
We offer fixed fees depending on the value of the property. Our fees cover all the legal work* required to complete the purchase of your new home. You will also have to cover any recharges/disbursements we pay on your behalf. Recharges/Disbursements are costs related to your transaction that are payable to third parties (i.e. HM Land Registry, search providers, freeholder landlords/management companies) during your purchase. Typical recharges/disbursements are listed under a separate heading below.
This work includes dealing with the procurement, review and basic reporting of title information, co-ordinating standard pre-contract and reasonable additional enquiries, negotiating and agreeing contract and transfer documents, procurement of Land Registry Official Copy Entries and title plan, dealing with registration of your purchase at the Land Registry and the payment of Stamp Duty Land Tax (Stamp Duty- SDLT) if the property you buy is in England, or Land Transaction Tax (Land Tax- LTT) if the property you buy is in Wales.
Fees (including supplemental fees applicable to some sales and purchases)
We have listed in the table below other transactional specific matters that incur a supplemental fee to the main fee. Please note that this is not an exhaustive list, and other fees may be applicable to the sale or purchase of your property, depending on circumstances. The list details the activities and fees most commonly encountered.
| Item | Fee |
|---|---|
| Legal fees, depending on the value of the property | Plus VAT at current rate of 20% |
| Up to £300,000 | £950.00 - £1745.00 plus VAT |
| £300,000 – £400,000 | £1025.00 - £1845.00 plus VAT |
| £401,000 – £500,000 | £1150.00- £1945.00 plus VAT |
| £501,000 – £700,000 | £1350.00 - £2145.00 plus VAT |
| £701,000 - £800,000 | £1995.00 - £2145.00 plus VAT |
| £801,000 - £1M | £2195.00- £2345.00 plus VAT |
| £1m - £1.5M | £2645.00 plus VAT - POA |
| £1.5M + | POA |
| Supplemental fees most commonly encountered | Please note that this is not an exhaustive list, and other fees may be levied depending on circumstances. The list below details the activities and fees most encountered on a purchase. |
| Leasehold purchase supplemental fee | £550 plus VAT |
| ‘Help to Buy charge’ supplemental fee | £250.00 plus VAT |
| ‘Help to Buy ISA’ supplemental fee | £50.00 plus VAT |
| Lifetime ISA (LISA) supplemental fee | £75.00 plus VAT |
| Management Enquiries on a Freehold Property (dealing with enquiries & replies when a freehold management property has a management company) | £250.00 plus VAT |
| Unregistered property supplemental fee | £250 plus VAT |
| New build property supplemental fee | £395.00 plus VAT |
| New Build Leasehold Purchase (dealing with the additional requirements with the creation of a brand new Lease) | £250.00 plus VAT |
| Third Party Gift Fee ( dealing with the additional requirements to investigate source of funds/proof of funds/liaising with your lender and ID of a third party giftor) | £100.00 plus VAT |
| Acting on behalf the mortgage lender | £125.00 plus VAT |
| SDLT/LTT submission fee to HMRC/WRA | £75.00 plus VAT |
| Anti-Money Laundering / ID checking fee, per person | £20.00 plus VAT |
| Electronic money transfer fee within the UK (including bank charges) | £35.00 plus VAT |
Non-standard / Additional work – Hourly Rates
There will be occasions when a matter becomes protracted or more complex than originally anticipated. In those circumstances we reserved the right to increase our fee that we charge for the work involved. We will inform you if any unforeseen extra work becomes necessary and let you know in writing the estimated cost of that extra work before incurring extra costs. We will attempt to agree an amended charge with you. If we cannot reach an agreement, we will do extra work and charge you on an hourly basis plus VAT for the work undertaken on your matter to date. Please note our hourly rates set out below.
Depending on the complexity of the transaction or documentation, additional fees may apply at the fee earner’s hourly rate on all types of transaction, at the following indicative rates:
| Partner | £205 - 225 plus VAT at current rate of 20% |
|---|---|
| Solicitor | £190.00 plus VAT at current rate of 20% |
| Conveyancer | £125- 190.00 plus VAT at current rate of 20% |
Please refer to individual staff profiles Our People – Redkite Solicitors for details of individual qualifications and experience.
Supervision
In addition to the lawyer handling the purchase, conveyancing transactions are further supervised by a senior member of the team or Head of Department, Katherine Simpson, who has ultimate responsibility for the matter. The supervisor for each transaction is named in the engagement letter that is sent out to clients at the start of the process.
Recharges
We handle the payment of the Recharges (i.e. HM Land Registry Information products) on your behalf to ensure a smoother process. Pease note that this is not an exhaustive list, and other recharges may be applicable to the purchase of your property, depending on circumstances.
| Search | Original fee excl. VAT | Amount including admin fee | VAT | Total amount including admin fee & VAT |
|---|---|---|---|---|
| Search of the Index Map | £8.00 | £9.50 | £1.90 | £11.40 |
| Search of Whole (OS1) | £7.00 | £8.50 | £1.70 | £10.20 |
| Search of Part (OS2) | £7.00 | £8.50 | £1.70 | £10.20 |
| Title Plan | £7.00 | £8.50 | £1.70 | £10.20 |
| Register | £7.00 | £8.50 | £1.70 | £10.20 |
| Document Search | £7.00 | £8.50 | £1.70 | £10.20 |
| Bankruptcy | £6.00 | £7.50 | £1.50 | £9.00 |
| AP1 (no admin fee applies) | £5.00 | £6.00 | £6.00 |
Please note that the AP1 fee is for processing the Land Registration at the end of completion. This does not incur an admin fee.
Disbursements
We handle the payment of the disbursements on your behalf to ensure a smoother process. Please note that this is not an exhaustive list, and other disbursements may be applicable to the purchase of your property, depending on circumstances.
| Item | Fee (including VAT at current rate of 20%) |
|---|---|
| Land Registry Search (per title) | Variable (depending on location of property) |
| Drainage and Water Search | Variable (depending on location of property) |
| Environmental Search | £50 – £84 (depending on location of property) |
| Mining Search (where required) | £48 – £60 (depending on location of property) |
The Land Registry Fees applicable to your transaction can be calculated using the following link https://fee-calculator.landregistry.gov.uk/
Stamp Duty or Land Tax
This 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.
How long will my FREEHOLD house purchase take?
How long it will take from your offer being accepted until you can move into your house will depend on a number of factors. The average process takes between 10-12 weeks.
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 10 weeks. However, if you are in a chain, or there are unforeseen complications with any aspect of the property or transaction, the process can take considerably longer.
Stages of the process (FREEHOLD PROPERTY)
The precise stages involved in the purchase of a freehold residential property vary according to the property and the circumstances. However, the main stages are summarised below:
- Take your instructions and give you initial advice and providing you with an estimate of our fees.
- Verify your identification and address
- Check finances are in place to fund purchase and contact lender’s solicitors if needed
- Clarify source of funds and source of wealth to be used to fund the purchase
- Complete client onboarding and mandatory regulatory client and matter risk assessments. The client and matter risk assessments are reviewed throughout and at the end of the matter.
- Receive and advise on contract documents
- Carry out searches
- Obtain further planning documentation if required
- Make any necessary enquiries of seller’s solicitor
- Report on the property and give you advice on all documents and information received
- Go through conditions of mortgage offer with you and send you Mortgage Deed for signature
- Send final contract and Transfer Deed to you for signature
- Agree completion date (date on which funds will change hands)
- Exchange contracts and notify you that this has happened
- Arrange for all monies needed to be received from lender and you
- Complete purchase
- Deal with filing of return and payment of Stamp Duty/Land Tax
- Deal with application for registration at Land Registry
Additional disbursements – purchase of a LEASEHOLD PROPERTY
| Item | Fee (including VAT at current rate of 20%) |
|---|---|
| Notice of Transfer fee | This fee is set out in the lease/management pack. Often the fee is between £60 – £240 |
| Notice of Charge fee (if the property is to be mortgaged) | This fee is set out in the lease/management pack. Often the fee is between £60 – £240 |
| 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 £120 – £420 |
| Certificate of Compliance fee | Confirmed upon receipt of the lease, and can range between £60 and £600 |
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.
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.
Stages of the process (LEASEHOLD PROPERTY)
The precise stages involved in the purchase of a leasehold residential property vary according to the property and the circumstances. However, the main stages are summarised below:
- Take your instructions and give you initial advice and provide you with an estimate of our fees
- Verify your identification and address
- Check finances are in place to fund purchase and contact lender’s solicitors if needed
- Clarify source of funds and source of wealth to be used to fund the purchase
- Complete client onboarding and mandatory regulatory client and matter risk assessments. The client and matter risk assessments are reviewed throughout and at the end of the matter.
- Receive and advise on contract documents and leasehold documents
- Carry out searches
- Obtain further planning documentation if required
- Make any necessary enquiries of seller’s solicitor
- Report on the property and give you advice on all documents and information received
- Go through conditions of mortgage offer with you and send you Mortgage Deed for signature
- Send final contract and Transfer Deed to you for signature
- Agree completion date (date on which funds will change hands)
- Exchange contracts and notify you that this has happened
- Arrange for all monies needed to be received from lender and you
- Complete purchase
- Serve notice of transfer and mortgage on freeholder and management company (if there is one)
- Deal with the filing of the return and payment of Stamp Duty/Land Tax
- Deal with application for registration at Land Registry
How long will my LEASEHOLD house purchase take?
How long it will take from your offer being accepted until you can move into your house will depend on a number of factors.
The average process takes between 16 – 24 weeks. 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 16 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 4 and 6 months and additional charges will apply.
* 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 or the preparation of additional documents ancillary to the main transaction;
- In the case of a leasehold property, it involves the assignment of an existing lease and not the grant of a new lease;
- All parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation;
- No indemnity insurance policies are required. Additional disbursements may apply if indemnity insurance policies are required, our fees typically arrange from £35.00 - £100.00 plus VAT (20%) for putting these in place, depending on the complexity of the title defect.
