BUYING OR SELLING A HOUSE
What does it cost?
What will buying or selling a house cost?
Introduction
There are two elements to the costs of buying or selling a property.
First of all there are the fees that we charge you for doing the work. This will usually include the costs in relation to dealing with your mortgage since we will in most cases also act for the lender but you will be responsible for their fees.
Secondly, there are those payments that we need to make on your behalf in order to undertake the transaction. These are usually referred to as disbursements and will include things such as search fees, registration fees and stamp duty land tax.
The costs that are charged will depend upon a number of factors including the value of the property, the nature of the transaction and where the property is located.
We want you to be as clear as possible about the charges and additional payments. If you have any doubts whatsoever, please speak with us
Please remember that the charges detailed below can only be an indication of what you will be charge. Those charges could depend upon the nature of the property being purchased, whether it is freehold or leasehold, the complexity of the overall transaction, how many other parties are involved and where the property is situated – for example, properties in some areas require different searches to be carried out.
Our Basic Charges
The following is a list of the fees that we will charge in relation to the sale or purchase of a freehold property. VAT at 20% is payable in all cases. This does not include the costs of any disbursements which we will deal with later and additional charges should be added in relation to leasehold sales and purchases.
| Item | Price | VAT (20%) | Total |
|---|---|---|---|
| Up to £100,000 | £745 | £149 | £894 |
| £100,001 – £200,000 | £845 | £169 | £1014 |
| £200,001 – £750,000 | £945 | £189 | £1134 |
| £750,001 – £1,000,000 | £1145 | £229 | £1374 |
| £1,000,000+ | £1345 | £269 | £1614 |
| Transfer of Equity | £350 | £70 | £420 |
Additional Charges
In addition to the above charges, the following additional charges need to be added to the prices given.
| Item | Price | VAT (20%) | Total |
|---|---|---|---|
| SDLT Submission Fee | £100 | £20 | £120 |
| Purchase with a “Help to Buy” ISA | £50 | £10 | £60 |
| Sale or purchase of a leasehold property | £100 | £20 | £120 |
| Purchase of a new build property | £100 | £20 | £120 |
| Declaration of Trust | £300 | £60 | £360 |
| Dealing with a 3rd party solicitor e.g. on matrimonial sales | £250 | £50 | £300 |
Disbursements
Disbursements are costs related to your matter that are payable to third parties, such as Land Registry fees and search fees.
We will handle the payment of the disbursements on your behalf to ensure a smoother process. We may, however, ask you to pay those disbursements up front before they are actually incurred. Some incur VAT at 20%.
They are:
| Item | Price | VAT (20%) | Total |
|---|---|---|---|
| Search Fees* | £100 – £500 | £20 – £100 | £120 – £600 |
| HM Land Registry Fees** | £20 – £1,105 | No VAT | £20 – £1,105 |
| Electronic Money Transfer Fee*** | £30 | £6 | £36 |
| Identity, Funds & AML Checks | From £10.50 | From £2.10 | From £12.60 |
| Land Registry Searches**** | £3.90 per title | £0.78 | £5.68 |
| Bankruptcy Search**** | £2.90 per name | £0.58 | £3.48 |
| Land Registry Documents | £15 | £3 | £18 |
| Other disbursements | We will advise you as appropriate if these arise | ||
*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 searches. We will always ensure that you are aware of the searches that need to be made and how much they will cost.
**This is based on the value of the property, and will depend whether or not it is already registered, is a new build or forms part of an existing registered title
***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).
****These did not used to carry VAT but the latest HMRC interpretation of the rules has narrowed to include anything that can be deemed as being part of the services supplied by us (as opposed to repayment of a third party service supplied to the client).
Examples
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.
Example 1 – Freehold Purchase
This illustration relates to a purchase price of £450,000 new build property freehold purchase by two purchasers where there is an SDLT submission 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.
| Item | Price | VAT (20%) | Total |
|---|---|---|---|
| Legal fee – covering the legal work required to complete the purchase and includes dealings with registration at the Land Registry and acting on behalf of your lender (if any). | £945 | £189 | £1134 |
| New Build Additional Charge | £100 | £20 | £120 |
| SDLT Submission | £100 | £20 | £120 |
| Search fees (depends on the location of the property) | 300 | £60 | £360 |
| HM Land Registry fee (If property is already registered and a transfer of the whole of the title) | From £150 | No VAT | £150 |
| HM Land Registry Searches | £3.90 | £0.78 | £4.68 |
| Bankruptcy Search x 2 | £5.80 | £1.16 | £6.96 |
| Electronic money transfer fee | £40 | £8 | £48 |
| Electronic ID and Lawyer Check | £60 | £12 | £72 |
| 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 | No VAT | £12,500 |
| Total | £14,515.64 | ||
Example 2 – Freehold Sale
This illustration relates to a sale price of £250,000 property freehold by with no unusual features in the title. Do bear in mind that if unforeseen complications arise during the transaction, we may need to review our fees.
| Item | Price | VAT (20%) | Total |
|---|---|---|---|
| Legal fee – covering the legal work required to complete the sale and includes acting on the discharge of a mortgage (if any). | £945 | £189 | £1134 |
| HM Land Registry Document Fee | £15 | £3 | £18 |
| Electronic money transfer fee | £40 | £8 | £48 |
| Electronic ID and Lawyer Check | £60 | £12 | £72 |
| Total | £1269 | ||
Some of Our Other Services
| Remortgaging and Equity Release Schemes |
| Estate Administration and Probate |
| Inheritance Tax Planning |
| Lasting Powers of Attorney |
| Wills |