Expenses on purchase of a property with an existing Lease

Expenses on purchase of a property with an existing Lease

Survey

A lender will carry out a basic survey but this does not deal with many structural issues or will not pick up issues such as damp. You may wish to get your own full independent survey which you have to pay for.

Removal Costs

You will need to also consider the costs of transporting your goods to and/or from the property

Searches

If you are buying with the aid of a mortgage we have to carry out certain searches. There are also other optional searches. We recommend you carry out searches however even if you are not buying with a mortgage. For more information go to our Searches & Other Enquiries page.

Stamp Duty Land Tax

This is a form of tax that is payable upon transfer of the property. The amounts payable are as follows:

Value of property being purchased Percentage of Tax Charged
Under £125,000.00 (or £150,000.00 in disadvantaged areas) 0%
More than £125,000.00 and under £250,000.00 1%
Over £250,000.00 and under £500,000.00 3%
Over £500,000.00 4%

Registration Fee

This is a fee payable to HM Land Registry upon registering you as the new owner of the property. The cost based on the value of the property as follows:

Value of Property Being purchased Registration Fee
£0-£50,000.00 £50.00
£50,001.00 – £80,000.00 £80.00
£80,001.00 – £100,000.00 £130.00
£100,001.00 – £200,000.00 £200.00
£200,001.00 – £500,000.00 £280.00

Notice to Landlord

It is not possible to give an exact figure but we shall have to pay a fee to the Landlord when we give notice of the Transfer (unless it is a new lease) and the mortgage if there is one. Generally the fees for this are between £10.00 and £80.00

Administrative costs of Landlord

Sometimes it is possible that the Landlord will have Administrative costs as well. Normally it would be expected that the vendor would pay but sometimes they are responsibility of the purchaser. We must warn you that sometimes there are administrative expenses that arise after completion of which we will have had no prior notice.

Reimbursement made to the vendor for Ground Rent & Service Charge

Sometimes the vendor will have paid Ground Rent and Service Charge in advance and you would be expected to reimburse them.

Indemnity Policy

This is a type of insurance policy and protects against any problems that may arise due to any defects in the Lease. Frequently such Leases will now already have Indemnity Policies that can be taken over by the purchaser. If there is not we would generally ask the vendor to pay but sometimes they will refuse.

Normally policies are a maximum of £250.00. It is highly unlikely that an Indemnity Policy would be required for a Lease developed since 1995.

For a payment of £60.00 including VAT upon instruction, you can rest assured that should your conveyancing transaction fall through, for whatever reason, you will not be charged any solicitors fees. This fee is payable per transaction and therefore if you had a sale and purchase with us you would need to pay £60.00 for each.

Should your sale or purchase fall through without having taken the No Move/No Fee option we will charge a fee as is reasonable for the amount of work done by that stage.

A discount of £20.00 plus VAT (£24.00) is available on all transactions if you are one of the following:

  • First Time Buyer
  • Cash Buyer
  • Buy to let Landlord
  • Previous client (where we acted for over the last 3 years)

If you qualify for this discount, simply deduct this amount from your total online quote and advise us of your circumstances on instruction.

Terms and Conditions

Only one deduction per transaction (e.g if both cash buyer and buy to let landlord we deduct £24.00).

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