Residential leasehold sale
Our fees and the disbursements payable for a residential leasehold sale depend on a number of factors, therefore we always provide our clients with a bespoke quote before accepting instructions to act in a purchase.
Our fees cover all of the work required to complete the sale of your leasehold home, including dealing with the redemption (repayment) of mortgages of the property.
- Legal fee ranging between £895 and £4,995 depending on the following factors:
- Sale price
- Timescales required for transaction
- Mortgage redemption (and repayment of any further secured loans or charges)
- Property has been altered
- Access issues
- Issues with the legal title and with the lease
- Is an extension or variation of the lease required
- Is the property part of a shared ownership scheme
- Electronic money transfer fee £30 per transfer (usually two transfers required per sale for a property with a mortgage)
- Fax, telephone, photocopying and incidental expenses £25
- VAT payable on all of the above at 20%
Disbursements are costs related to your leasehold sale 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 and for your lender.
- HM Land Registry fee for office copy entries £6 (no VAT payable)
In some cases, additional Land Registry fees and other disbursements may be required, for example, because copies of registered title documents, building regulations consents or planning permission have to be obtained, due to the originals having been lost. Normally no VAT is payable on these disbursements.
There will also be disbursements which will be set out in the individual lease (and freehold in some cases) of the property you are selling. 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 terms of the lease. We will update you on the specific fees upon receipt and review of the lease and related documents.
- Management pack: typically, between £0 to £500
- License to Assign fee- between £150 to £500
- Deed of Covenant fee- between £75 to £150
- Share Transfer fee- between £40 to £100
These fees vary from property to property and can on occasion be significantly more than the ranges given above. In some cases VAT is payable on them but this depends on whether the freeholder or managing agents are VAT registered. We will give you an accurate figure once we have sight of your specific documents.
The exact stages involved in the sale of a residential leasehold property vary according to the circumstances. However, a typical transaction involves the following stages, all of which would be covered by our fee set out above:
- Take your instructions and give you initial advice
- Verify that your purchaser’s solicitors are instructed and the conditions for the purchaser’s purchase and advise you of these.
- Liaise with you about completion of Property Information and Fixtures & Fittings Forms
- Obtain evidence of your ownership (office copy entries)
- Obtain management information on your behalf
- Obtain planning, building regulations and guarantee documentation if required
- Prepare draft contract and supporting title and other documents and send them to purchaser’s solicitor
- Reply to pre-contract enquiries made by the purchaser’s solicitors
- Agree final form of the draft contract with the purchaser’s solicitors
- Send final contract to you for signature
- Agree completion date (date from which you no longer own the property)
- Exchange contracts and notify you that this has happened
- Obtain mortgage redemption statement
- Complete sale
- Redeem mortgage on the property
- Pay your estate agent’s commission
- Send net proceeds of sale to you or apply them to a related purchase
- Notification of sale to freeholder/managing agents if required
How long will my leasehold sale take?
How long it will take from your offer being accepted until you no longer own the property will depend on a number of factors, such as
- Whether there is a chain, and if so, the readiness of the other parties in the chain to progress the transaction
- If the legal title to the property is defective or unregistered, or has other problems
- If the lease is defective or if it has to be extended or varied
- If there is more than one mortgage or charge of the property, or if the property is in negative equity
- If building regulations or planning consent have not been obtained
- If crucial documents needed to progress the transaction are not available
The average process takes between 6 and 8 weeks.