April 1, 2020
Our Fees and costs
We usually carry out residential conveyancing work for a fixed and guaranteed fee. In addition, there will be other costs outlined below that we pay on behalf of the client to external organisations known as disbursements. VAT is also payable on our fee and some of the disbursements.
The total cost of conveyancing work is made up of:
1. The fees for our work which are £2,000 to £2,950 depending on the complexity of the residential sale or purchase, which are subject to VAT at 20%. We will confirm the fee in writing once we have examined the residential sale or purchase and, upon signature of the client care letter, will then remain fixed.
2. For a residential property purchase, disbursement costs paid by us to third parties on your behalf - which usually include the following:
- Fees paid to HM Land Registry for registration of ownership of the property. This is on a sliding scale depending on the price of the property or the mortgage on it. Current fees range from £20 to £910 and exempt VAT;
- A fee for searches of the Local Authority, typically around £250 plus VAT. The fee varies depending on the location of the property;
- Fees for bankruptcy searches, typically around £2 per name and exempt VAT;
- A charge of £60 plus VAT to cover general overhead costs associated with the purchase, including electronic money transfers;
- Stamp Duty is payable to the HMRC. This is exempt VAT. The cost varies depending on the price of the property, whether or not this is a second home, and the residence status of the purchaser. Rates are shown below.
3. For a residential property sale, disbursement costs paid by us to third parties on your behalf - which usually include the following:
- There is a HM Land Registry fee of £6 for an official copy of the register of title and of the plan and £3 each for any supporting documents and exempt VAT;
- Fees for bankruptcy searches, typically around £2 per name and exempt VAT;
- A charge of £60 plus VAT to cover general overhead costs associated with the purchase, including electronic money transfers.
What we will do for a residential purchase
We provide a highly personalised service where clients can communicate directly and promptly with the qualified solicitor by email (unlike typical residential conveyancers) who will be responsible for the work from start to finish. The qualifications, experience and contact details of our solicitors can be found on our website at https://www.elliottmatthew.com/people
Our fees for residential conveyancing, for the purchase, will usually be for us to:
- take your instructions and give you initial advice;
- check finances are in place to fund purchase and contact lender's solicitors if needed;
- receive and advise on contract documents;
- carry out searches;
- obtain further planning documentation if required;
- make any necessary enquiries of seller’s solicitor, consider their responses and resolve issues;
- give you advice on all documents and information received;
- report fully on title including lease if leasehold property;
- send final contract to you for signature;
- agree completion date (date from which you own the property);
- exchange contracts and notify you that this has happened;
- arrange for all monies needed to be received from lender and you;
- complete the purchase;
- deal with payment of Stamp Duty/Land Tax;
- deal with application for registration at Land Registry.
The process can take between 6 and 10 weeks and is chain dependent. We will keep the purchaser informed at every step of the process.
What we will do for a residential sale
We provide a highly personalised service where clients can communicate directly with the qualified solicitor (unlike typical residential conveyancers) who will be responsible for the work. The qualifications, experience and contact details of our solicitors can be found on our website at https://www.elliottmatthew.com
Our fees for residential conveyancing, for the sale, will usually be for us to:
- take the sellers instructions and give initial advice
- prepare draft contract documents and title package including seller’s forms;
- reply to enquiries raised by the buyer’s solicitors
- give the seller advice on all documents and information relevant to the sale
- liaise with agents to ensure a swift transaction
- send the final contract for signature
- agree a completion date (date on which the seller will vacate the property)
- exchange contracts and notify the seller that this has happened
- send final transfer documents to the seller for signature
- legally complete the sale
- settle the agents’ invoice from the sale proceeds
- redeem any mortgage(s)
- transfer any balance of funds held
The process can take between 6 and 10 weeks and is chain dependent. We will keep the seller informed at every step of the process.
Stamp Duty Land Tax (SDLT) – as at May 2020
The purchaser will usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price above £125,000 when they buy residential property, for example a house or flat.
There are different rules if the purchaser is buying their first home and the purchase price is £500,000 or less. The purchaser can claim a discount (relief) so that they do not pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000. If the price is over £500,000, then they follow the rules for people who have bought a home before.
If the purchaser has bought a home before then the following rates apply:
Property or lease premium or transfer value = SDLT rate
Up to £125,000 = Zero
The next £125,000 (the portion from £125,001 to £250,000) = 2%
The next £675,000 (the portion from £250,001 to £925,000) = 5%
The next £575,000 (the portion from £925,001 to £1.5 million) = 10%
The remaining amount (the portion above £1.5 million) = 12%
The purchaser will usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means they will own more than one. They will not pay the extra 3% SDLT if the property they are buying is replacing your main residence and that has already been sold.
The government will introduce a 2% stamp duty surcharge for non-UK buyers from April 2021.
There are different SDLT rules and rate calculations for:
- corporate bodies
- people buying 6 or more residential properties in one transaction
- shared ownership properties
- multiple purchases or transfers between the same buyer and seller (‘linked purchases’)
- purchases that mean you own more than one property
- companies and trusts buying residential property
Further details can be found at https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
We do not pay referral fees to any intermediaries in relation to our conveyancing work.
This information applies to residential conveyancing in England & Wales. We are also able to do residential conveyancing in Scotland where disbursements may vary, particularly SDLT. We are here to help and guide you, should you need assistance. Please give us a call or send us an email.
Jeff White Mobile: 07807 131216 Email: firstname.lastname@example.org
Sandra Rankine Mobile: 07725 407685 Email: email@example.com
Edward Jones Mobile: 07876 255398 Email: firstname.lastname@example.org
Elliott Matthew Property Lawyers
Tel: 020 3585 1945. Fax: 020 3137 7190. DX: 44625 MAYFAIR. 10 Margaret Street, Fitzrovia, London, W1W 8RL
Company: Elliott Matthew Property Lawyers is the trading name of Elliott Matthew Limited. Registered in England & Wales. Registered number: 11058558. Registered office: 10 Margaret Street, Fitzrovia, London, W1W 8RL. Tel: 020 3585 1955. Fax: 020 3137 7190. DX: 44625 Mayfair. Web: www.elliottmatthew.com. This company is regulated and authorised by the Solicitors Regulation Authority.