Residential Purchases - The Process and Costs
Timescales: How long will my purchase take?
Please note: The Government is yet to provide clarity on how restrictions announced by the Prime Minister will affect moving house during the Coronavirus Crisis. Please speak to us directly if you have any questions or concerns. The current situation is likely to mean that transactions will take longer than usual and the information on timescales here relates to normal circumstances. This page will be updated when clarity is provided by the Government.
While we are able to deal with a residential property transaction quickly, we will always be reliant on third parties including the seller and mortgage lender. Most purchases complete within 4 to 12 weeks. It can, however, be difficult to provide a specific time estimate in a property transaction particularly if you are part of a chain. A chain is where the person you are buying from has a property to buy before they sell your new property to you. The same situation is repeated if the new property of the person you are buying from has owners who also need to buy. If you are in a chain, the transaction can only proceed as quickly as the slowest person in the chain.
The Typical Stages of a Residential Property Purchase
- We will take your initial instructions including how you plan to fund the purchase and any particular requirements you may have. At the same time we shall contact the Estate Agent to request a Memorandum of Sale which is a document confirming the agreed price of the property, the buyers, the sellers and their respective conveyancers.
- The Seller of your new property will have to instruct their own solicitor or conveyancer if they have not already done so. When we know who the Seller's conveyancers are, we shall contact them after receipt of the documents requested from you, to request a draft contract.
- On receipt of the draft contract, we will carry out searches. Please click here more information on what searches are.
- We will make enquires with the seller’s solicitors about any issues that need to be addressed which can often relate to planning documentation.
- On receipt of the replies to enquiries, we will provide you with full advice on the documents and information received. If you are funding the purchase with a mortgage, we will also advise you on the conditions of your mortgage offer.
- If you are satisfied that you wish to proceed with the purchase, we will send the final contract to you for signature.
- We will agree a date for completion of the purchase, exchange contracts and confirm to you when this has taken place. Following this we will issue a Completion Statement setting out all the financial arrangements and arrange for all monies to be received from your lender and from you.
- Completion of the purchase can then take place at which point you will legally own the property. We will subsequently deal with payment of Stamp Duty Land Tax / Land Transaction Tax and ensure that you are registered with the Land Registry as the legal owner of the property.
How much will it cost?
To obtain costs information specific to your transaction, please call us and we can provide this instantly.
We offer fixed fees meaning that you know from the outset what the total cost will be. There are various factors that we will need to discuss with you to enable us to confirm what that fee will be but on average our fees range from £800 - £1,500 + VAT. The purchase of a Freehold property will nearly always cost less than the purchase of a Leasehold property. Our fee will include all the work required to complete the purchase of your new home as outlined above in the typical stages on the basis that there are no defects with the legal title.
We will charge £30 + VAT for every electronic bank transfer that we make on your behalf but only one transfer is usually required.
We will charge £10 + VAT for maintaining an archive of your file.
If you are using a Help to Buy ISA we will charge £50 + VAT to deal with each ISA
There are charges, known as disbursements, as part of the purchase that are payable by you but that we handle for you. These include:
Search fees which are a maximum of £240
A Land Registry fee to register the property. Details can be found by clicking here
If you are buying a Leasehold Property, there is likely to be a fee charged by the freeholder for a Notice of Assignment. This will usually be specified in the Lease and can range from £50 - £400. There may also be other charges specified in the Lease including service charges, ongoing ground rent. These vary greatly and we will advise you of those when we have the documents.
Example Total Purchase Costs
Scenario: First-time buyer buying a Freehold property in England for £200,000 with no Help to Buy ISAs.
Legal Costs: £949
Bank transfer charge: £30
Archive Fee: £10
Searches: £236 (including local search, drainage, mining, environmental, chancel, bankruptcy and land registry final search)
Land Registry Fee: £95
Stamp Duty: £Nil
Important: Excluded Services
We do not advise on tax matters but we can recommend specialist tax advisers if you wish.
No Sale, No Fee
We offer a ‘no sale, no fee’ service. This means that if the matter does not complete for any reason, you will not have to pay our costs for completing the work. You will, however, have to pay any disbursements paid on your behalf. Any monies paid on account of our costs shall be refunded to you less the value of any disbursements incurred.
On some transactions, we pay a referral fee to an introducer. This may be your Estate Agent or Financial Adviser. That fee which on average is £100 will not be charged to you and will be payable by Waldrons. Any advice we give you in relation to your property transaction will be independent and you are free to voice questions on all aspects of the transaction. Any information disclosed by you to us will not be disclosed to a third party without your permission.