Client Information & Pricing

There are three main stages to the process of purchasing a property:

1. The pre-contract stage – what we do before you commit to buying the property;
2. The post-contract stage – what we do make sure the property is transferred to you; and
3. The post-completion stage – dealing with outstanding issues after you have moved in.

The pre-contract stage

So that we can make sure that everything about the property you are buying is right, we will:

• Provide you with preliminary advice on the things that you need to do and ask you to let us know the details of the property you are buying and in whose name it is being bought. We also need details of how you are paying for it (e.g. with savings or a mortgage) and if you have a house to sell.
• By law we are required to ask for evidence of your identity so that we can comply with the strict money laundering duties to which we are subject.
• Next, we will obtain details of the property and various documents from the solicitor/conveyancer for the seller. This will include a draft contract, proof that the person selling the property is entitled to do so and various other documents and forms such as planning consents and details of rights of way and any work done to the property.
• Whilst we are dealing with this, we will ask questions of any organisations or bodies who are likely to have information relating to the property you are buying. These are called searches and can deal with issues such as utilities, planning and potential problems such as mining, flooding or subsidence. The exact nature of the searches will depend upon where the property is and what affects it. A charge is made for these searches which we will inform you about.
• We will then check to make sure we are happy with the information supplied including asking questions of the seller – known as pre-contract enquiries.
• If you are buying with the help of a mortgage, we will make sure that it meets your needs and, in most cases, we will also act for the provider of your mortgage – who will also want to be sure the property you are buying is adequate for their purposes.
• If you are buying the property jointly, we will advise you about joint purchases and if it is a leasehold property, inform you of any conditions in the lease of which you need to be aware.
• Once we are happy that the legal issues are as they should be and you are ready to go ahead, you will sign the contract and we will “exchange contracts” – in other words enter into a binding agreement for you to purchase the property – and agree a completion date. Note that the timings on any other sales and purchases in the “chain” can be one of the things that can hold up the transaction.
• Please note that it is usual for a deposit of 10% of the purchase price to be paid to the seller when you exchange contracts (although sometimes a lesser sum can be agreed). This shows that you intend to proceed with the purchase, and you should note that you may lose it if you pull out of the transaction after exchange of contracts without good reason.

The post-contract stage

• Following exchange of contracts, we will begin the work leading to completion (that is to say the date upon which the property becomes yours to move into).
• We will draft the purchase document, complete the mortgage documents (if any), carry out any final searches and make sure that everyone else in the transaction is ready to go ahead. If there is a “chain” of transactions all completions will usually need to happen on the same day.
• We will ask you to sign the various outstanding documents, calculate the final details of the finances and then ask you (and your mortgage provider) to let us have the money we need to complete the purchase. This MUST include any other payments that still need to be made such as the land registration fee and any stamp duty land tax and we cannot go ahead unless we have all of the money needed.
• If everything is in order then, on the day of completion we will transfer the balance of purchase money to the seller’s solicitor/conveyancer and receive from them the deeds and documents relating to the property. We will check with you so you can arrange to get the keys to the property and move in. Do bear in mind that you will not be able to move into the property until the money is received by the seller’s solicitor/conveyancer.

The post-completion stage

• After completion, we will finalise the paperwork and arrange for the payment of any stamp duty land tax and arrange for your title to the property to be registered at the Land Registry.
• When this is all finished, we will send the documents either to you or the mortgage provider, as appropriate.

There are three main stages to the process of selling a property

1. The pre-contract stage – what we do before you commit to selling your property;
2. The post-contract stage – what we do to make sure ownership is transferred to the buyer; and
3. The post-completion stage – dealing with outstanding issues after you have completed your sale.

The pre-contract stage

• We will start by taking your instructions. Ideally this should be as soon as possible after someone has offered to buy your property or – if your sale is linked to the purchase of another property – as soon as you have found a property to purchase.
• We will ask you where the documents for your property are, whether you have a mortgage that needs to be paid off and whether you are buying another property. We will also need to ask for evidence of your identity so that we can comply with the strict money laundering duties the law places upon us.
• Normally we will be contacted by the estate agent selling your property for you and they will give us details of the purchasers of your property and their solicitor/conveyancer. If no agent is involved, you will need to provide that information.
• Where you are selling a leasehold property, we will tell you about any specific duties there are such as notifying the landlord and if it is owned jointly about any issues that arise.
• Once we have the documents to your property, we can prepare a contract and send all of the relevant documents to the buyer’s solicitor/conveyancer.
• The buyer’s solicitor/conveyancer will check the contract and documents, carry out searches and ask questions – called pre-contract enquiries – about the property. We may need you to help us to answer those since they could relate to utilities such as gas or telephone, improvements you have made to the property or matters such as flooding or subsidence.
• When the buyer’s solicitor/conveyancer is happy from a legal point of view, and the buyer is ready to go ahead, we will ask you to sign one copy of the contract which we will then “exchange contracts” – in other words make a binding agreement to sell the property to the buyer. Note that timing might depend on any related purchase you have or how quickly your buyer can go ahead. You will agree the completion date at this time.
• On exchange it is usual for a deposit to be taken. Normally this will be 10% of the sale price although you may be asked to accept less if, for example, your buyer is getting a 95% mortgage or has had to accept a reduced deposit on their sale.
• The deposit shows that your buyer intends to go ahead with the purchase and will be forfeited if they pull out of the transaction.

The post-contract stage

• After exchange, we will approve the transfer document, find out how much is needed to pay off your mortgage (if any) and make sure everyone else in the transaction is ready to proceed. You will need to sign the transfer in readiness for completion.
• We will work out the financial details and let you know how much you will be receiving from the sale or, if you are buying another property, how much extra we will need to complete your purchase. If you are buying, that sum will include any other payments we still need to make such as the land registration fee and any stamp duty land tax and you must pay those to us before we can complete.
• On completion day, if there are no other problems, we will receive the balance of purchase money from the buyer’s solicitor/conveyancer and send them any deeds and documents relating to your property. We will make sure you know when to hand over the keys to your property to the buyer.
• Usually, until the money is received by us your buyer cannot move into your property and you should not let them do so until we tell you it is safe.

The post-completion stage

• After completion has taken place, we will pay any outstanding mortgage from the sale proceeds and account to you for any balance which is due. If you are purchasing another property will carry out the remaining purchase tasks.

If you are taking out a mortgage on a property that has not previously been mortgaged, or you are changing from one mortgage provider to another, then although you are not purchasing a new property many of the processes that would have been required on a purchase will need to be done. This is so that the provider of the new mortgage can be sure that you have a good title to the property that secures their loan.

There are many reasons why you might need to mortgage or remortgage your property including to carry out improvements or repairs to your property or for a purpose unconnected with the property – for example purchasing a holiday home or paying off existing debts. You might even simply want to switch to a different mortgage provider to get a better interest rate or to extend the term of your mortgage.

If you are simply switching from one type of mortgage to another but remaining with the same lender then this is not a remortgage and, in most cases, can be dealt with by the lender themselves without a solicitor being involved.

The mortgage and remortgage process

Mortgaging or remortgaging a property is more straightforward than undertaking a sale or purchase – if only because there is no one else involved other than the mortgage provider. We will, however, still be required to investigate the title to your property so that the new lender can be sure that they have adequate security on your home.

• We will start by taking your instructions including obtaining details of your present mortgage and who has the documents to your property if they are not with you or your current lender. We will also require evidence of your identity so that we can comply with the strict money-laundering duties that apply.
• If you are remortgaging, you will need to tell your existing mortgagee that we are acting in the remortgage so that the documents can be released to us and you will need to provide us with a copy of your house insurance documents. In both cases you will need to let the new mortgagee know that we are acting.
• For a remortgage, we will find out how much is currently outstanding on your existing mortgage and get details of your new mortgage from the new lender for whom we will usually act.
• We will undertake various searches and have a look at the deeds to your property to make sure that there are no issues with your property that could affect the interests of the new mortgagee. We may need to ask that you pay for these searches in advance.
• Once we have received your mortgage offer from the new lender, we will check to make sure that it is satisfactory given your intentions.
• Once we have checked the title and checked the mortgage, we will ask you to sign the mortgage deed.
• After the paperwork has been signed, the mortgage or remortgage can be completed. If it is a remortgage, we will pay off your previous mortgage from the funds received from your new mortgage and forward any balance to you (or request that you pay a balance to us if you are reducing the amount of your mortgage). If there is a sum due from you this must be paid, together with any Land Registry fee, before completion of the remortgage takes place. If it is a mortgage, we will simply send the balance of funds to you.

A transfer of equity is a transaction designed to change who is the owner of your property without an actual sale taking place – for example where joint owners transfer the property into the sole name of one or other of them, or where a sole owner transfers the property into joint ownership.

In most cases a transfer of equity will be more straightforward than a sale or purchase between non-linked people. For example, searches or enquiries will be much more limited because the parties are likely already to have knowledge of the property and there is rarely a need for a contract.

The main complication tends to be where the property is subject to a mortgage since the consent of the lender will need to be obtained before the transfer can take place.

There are various reasons why you might want to carry out a transfer of equity. A common one is because the owner of the property has entered into a new relationship or marriage and wishes to put the new partner/spouse onto the deeds of the house they will be living in.

Sometimes, however, it may be because a relationship has broken down and the property is being transferred from joint names into the sole name of one of the parties to the relationship – for example following a separation or divorce.

In some cases it may be for tax planning purposes so that ownership can be transferred into the name of a third party (for example a family member) to help reduce tax liabilities or to help ensure that the property remains in the family.

What is involved in a transfer of equity?

Provided that there is agreement as to what everyone wants from the transaction, then the transfer of equity process will be straightforward, and we will help guide you through the process.

If the transfer of equity is taking place as part of a divorce, then it is likely that each party will have their own solicitor representing and advising them.

However, regardless of the parties involved the steps are:

• We will obtain details of the legal title to the property – either the deeds or an official copy of the title from H M Land Registry. We will then review the title to check for a mortgage or any other restrictions on the property. At this point, we will also need to ask for evidence of your identity so that we can comply with the strict money laundering duties the law places upon us.
• Next, we will draw up the transfer deed document ready to be signed.
• If the property is subject to a mortgage, then you will need the consent of the lender before a transfer can go ahead. If the property is being transferred subject to the current mortgage, the lender will need to be a party to the transfer deed. Sometimes, however, the mortgage will be paid off at the same time, in which case we will need to get a redemption figure from the lender.
• Once we have prepared the paperwork, the next step will be to get the various parties to sign it.
• Finally, once the transfer has taken place, we will need to register the details of the transfer at H M Land Registry. This will involve the payment of a fee.

Under £300k	£1,000 + Vat
£300k to £500k	£1,250 + Vat
£500k to £750k	£1,500 + Vat
£750k to £1m	£2,000 + Vat

Over £1m quote will be provided

Under £300k	£1,250 + Vat
£300k to £500k	£1,500 + Vat

Over £500k quote will be provided

The Fees that apply in relation to transactions which are not standard sales or purchases

Transfer of Equity (without any mortgage(s))	£300 + VAT
Transfer of Equity (with mortgage(s))	£450 + VAT
Mortgage or Remortgage	£400 + VAT
Buying with a New Build Help to Buy Mortgage	£250 + VAT on top of standard fee
Dealing with a Help to Buy ISA	£50 + VAT per ISA
Dealing with 3rd party solicitors (e.g. where you have a sale or re-mortgage which must tie in with a purchase or with matrimonial solicitors or lender’s solicitors)	No additional charge
Dealing with a management company (Freehold)	No additional charge

 

In addition to our charges, the following approximate disbursements and other charges are likely to be incurred. Please see below as to what these involve:

Searches	£300.00
Bank Transfer	£38.40 per transfer
Identity, funds and AML checks	£30.00
eCOS onboarding	£7.80 per client
Land registry searches	£3.90 per title
Bankruptcy search	£2.90 per name

Search fees – these are payments that we need to make to others in order to find out things about the property – for example issues relating to the local authority, issues related to previous coal mining beneath the property or whether the property is liable to flooding. They range from approximately £100.00 to £500.00 or sometimes more depending upon the factors. We have estimated them to be £300.00. It is not possible to be more specific as the actual cost will depend upon the location of the property, the number of specific searches required and the requirements of any lender. Properties in different parts of the country require different types of search(es). We will always ensure that you are aware of the searches that need to be made and how much they will cost.

Bank Transfer – this includes the charge that is made by the bank for transferring money from our bank account to the account of another solicitor, or to you, and also includes an administration charge by this firm of £20 + VAT (which is not classed as a disbursement).

Identity, Funds and AML Checks – the law requires that we take steps to ensure that any transaction we are dealing with is not one that is being used to assist with money laundering. To achieve this, we need to undertake various checks to confirm the identity of clients and their source of funds.

eCos onboarding – eCos is a digital system that allows us to carry out electronic verification of our clients.

Land Registry Searches – the fee we pay to HM Land Registry to carry out a search of the property in their register.

Bankruptcy Search – we need to make sure on behalf of a lender that, for example, a purchaser is not subject to a bankruptcy.

Land Registry Fees

The fee at H M Land Registry varies significantly depending on various factors. We will advise you of the exact fee in relation to your transaction once we have all the required details but can give you an idea at the outset upon any enquiry with us.

Stamp Duty Land Tax/Land Transaction Tax

This will apply to purchases and, in some cases, to transfers of equity.

The amount of tax that is payable depends on a number of different factors including the purchase price of your property and the nature of the purchase. You can calculate the amount you will need to pay in England by using HMRC’s website (https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro) or if the property is located in Wales by using the Welsh Revenue Authority’s website (https://gov.wales/land-transaction-tax-guide).

Additional Leasehold/Management Company Payments

It may be necessary for additional payments to be made to a landlord or to a management company in relation to the property. We will always advise you as to these payments as soon as we are able to ascertain if they are payable and the amount involved. These may include a formal notice of the acquisition (and any mortgage) being notified in writing to the freeholder, with a registration fee often being required by the lease or, if the property you are purchasing has “common parts” i.e. areas that you share with others such as hallways, stairs, drives, parking areas, communal gardens etc., there may also be additional payments to be made to the management company responsible for the common areas.

In addition to our charges, the following approximate disbursements and other charges are likely to be incurred. Please see below as to what these mean:

Land Registry documents	£15.00
Identity and AML checks	£30.00
eCOS TA forms and onboarding	£7.80 per client
Bank Transfer	£38.40 per transfer

Land Registry Documents – the fee that we pay for obtaining copies of the register for your property to supply to a purchaser’s solicitor/conveyancer.

Identity and AML Checks – the law requires that we take steps to ensure that any transaction we are dealing with is not one that is being used to assist with money laundering. To achieve this, we need to undertake various checks to confirm the identity of clients.

eCos onboarding – eCos is a digital system that allows us to carry out electronic verification of our clients.

Bank Transfer – this includes the charge that is made by the bank for transferring money from our bank account to the account of another solicitor, or to you, and also includes an administration charge by this firm of £20 + VAT (which is not classed as a disbursement).

Estate Agent – the costs agreed with your agent where you have one.

The following are examples of the likely costs for a particular type and value of transaction.  They are only examples, and each transaction will vary according to the values and locations of the properties involved and other legal factors such as referred to above.

Freehold purchase

This illustration relates to a purchase price of £450,000 involving a standard transaction with no unusual features in the title and no new leases being granted. Do bear in mind that if unforeseen complications arise during the transaction, we may need to review our fees.

Legal fee – covering the legal work required to complete the purchase and includes dealings with registration at the Land Registry, Stamp Duty Land Tax/Land Transaction Tax and acting on behalf of your lender (if any).	1250.00 + VAT = 1500.00
Search fees (depends on the location of the property)	300.00
HM Land Registry fee (If property is already registered and a transfer of the whole of the title)	150.00
HM Land Registry searches	3.90
Bankruptcy Search	2.90
Electronic money transfer fee	38.40
Electronic ID and Lawyer Check (based on one client)	37.80
Stamp Duty Land Tax (based on clients that have owned a property previously and will only own one property once the purchase has completed)	12,500.00
Total	£14533.00

Freehold sale

Legal Fee – This covers the legal work required to complete your sale including preparing and sending out contract papers, dealing with enquiries and acting on behalf of your lender (if any).	1250.00 + VAT = 1500.00
H M Land Registry Document Fee	15.00
Electronic money transfer fee	38.40
Electronic ID and Lawyer Check (based on one client)	37.80
Total	£1591.20

On average a sale or a purchase takes between 8 and 12 weeks. A simple transaction might be quicker but, if there is a long chain of transactions, then it could take longer.

We will always make sure that you are kept fully up-to-date with the likely time-scale.

Some of the factors that can influence how long a purchase transaction can take include:

• Waiting for the Local Authority to report on matters affecting the property, such as planning permissions and building consents;
• The time taken by the vendor to respond to any questions about the property, such as details of fixtures and fittings or certificates/guarantees for work done to the property;
• If the property is leasehold, waiting for the management company to provide details of service charges and ground rent;
• Waiting for the purchaser to agree matters with a purchaser of their property;
• Where someone drops out in the middle of a chain of transactions;
• Waiting for the mortgage lender to provide the mortgage papers for signing.

Some of the factors that can influence how long a sale can take include how quickly the buyer’s solicitor/conveyancer is able to deal with the transaction and, if the property is leasehold, waiting for the management company to provide details of service charges and ground rent. You can always help speed up the transaction by responding promptly and fully to any questions that we ask you.

To ensure your transaction proceeds as quickly as possible we will always chase up the progress of your transaction and will not simply wait for something to happen. However, just because the transaction is not moving forwards does not mean that it is us that is holding it up.

How long your mortgage or remortgage takes will depend on several factors including the property itself and how quickly the mortgage provider is able to process the matter. Rest assured that we will always try and make sure that your transaction takes no longer than is absolutely necessary.

On average a remortgage takes roughly 3 to 6 weeks.

To ensure your transaction proceeds as quickly as possible we will always chase up the progress of your transaction and will not simply wait for something to happen. However, just because the transaction is not moving forwards does not mean that it is us that is holding it up.

How long your transfer of equity takes will depend on several factors including the property itself and how quickly the various parties, including a mortgage provider, is able to process the matter. Rest assured that we will always try and make sure that your transaction takes no longer than is absolutely necessary.

It is difficult to give a precise time for the transaction as it may be tied up with how long it takes for a matrimonial settlement to be reached. However, the actual legal work involved in the transfer should take no more than 3 to 6 weeks.

To ensure your transaction proceeds as quickly as possible we will always chase up the progress of your transaction and will not simply wait for something to happen. However, just because the transaction is not moving forwards does not mean that it is us that is holding it up.