RESIDENTIAL PROPERTY SALE – FREEHOLD PROPERTY COSTS EXPLAINED

Our Team

Residential Property is one of Hatchers’ principal areas of expertise and we have specialist residential property lawyers and executives in each of our 3 offices.

We deal with the sale and purchase of all types of residential properties from shared ownership starter homes to substantial mansions as well as other property related matters.

We are members of the Law Society Conveyancing Quality Scheme (CQS).

For more information as to the experience and qualification of members of our Team please click below:

Shrewsbury – Welsh Bridge

Shrewsbury – Harlescott

Whitchurch

Understanding a Property Sale and its Key Stages

There are two key stages to a sale transaction: “exchange of contracts” and “legal completion”.

At the start of the transaction, it is the responsibility of the seller’s solicitors to provide details of ownership of the property and a comprehensive contract pack to the Buyer’s solicitors.

The contract pack must include; evidence of the seller’s ownership of the property with completed information forms and supporting documents.  You will need to provide us with the relevant information and (if applicable) any planning permissions, evidence of building regulation compliance and any warranties or guarantees.

The basic principle when selling property or land is that it is the responsibility of the Buyer to make sure that everything is in order before committing to the purchase.

A property sale becomes legally binding when the agreed form of contract has been signed by both parties and exchanged, i.e. the Buyer’s solicitors hold the part signed by the seller and vice versa and the Buyer’s solicitors pay the deposit (usually 10% of the sale price) to the seller’s solicitors.

At the exchange of contracts, a date or timeframe is set for legal completion to take place.  This is when the balance of the purchase price is paid and the legal ownership of the property is transferred to the Buyer

Further details of the steps to be taken, work involved and usual time frames are set out below.

Stages of the Transaction and Timeframes

How long a transaction takes from you accepting an offer until you can move into your house will depend on a number of factors but the usual timeframe is between 6-8 weeks from the date the contract pack is received by the Buyer’s legal adviser. It can be quicker or slower, depending on such matters as the Buyer arranging finances, the personal circumstances, requirements and number of other parties in the chain.

Stage 1 – Exchange of Contracts (usually 4-6 weeks from the time contracts are issued)

Before contracts are exchanged we will:

  • Take your instructions and provide initial advice
  • Carry out Anti-Money Laundering and Identity checks
  • Obtain, prepare and submit to the Buyer’s solicitors the contract pack
  • Provide you with the standard information forms to complete and in turn receive from you any guarantees and warranties,          planning permissions and building regulations approvals as applicable.
  • Receive pre-contract enquiries from the Buyer’s solicitors and respond after discussing with you.
  • Receive and approve the Transfer Deed (TR1) from the Buyer’s solicitors
  • Obtain a redemption statement (if necessary) from your mortgage lender(s) to calculate the amount needed to be repaid on       completion of the sale
  • Arrange for you to sign the documentation needed to complete the sale.
  • Agree on the completion date (date from which you no longer own the property)
  • Exchange contracts to make the sale legally binding and notify you that this has happened

Stage 2 – Legal Completion (usually 1-2 weeks after exchange of contracts)

Between exchange of contracts and completion we will:

  • Obtain an up to date redemption statement from your lender (if applicable)
  • Complete the sale, i.e. receiving the sale price from the Buyer’s solicitors
  • Ensure all mortgages (if applicable) are repaid
  • Deal with the payment of the balance to you (or transfer to a related purchase transaction if applicable) after satisfaction of       all fees (ours and any estate agents) and expenses

Explanation of fees and expenses

Our fees cover the work required to complete the sale of your property based on this being an established property with a freehold title.

The fees and estimates guide below is based on a standard transaction but there can be further stages and additional work required for more complex or unusual transactions, e.g. if more than one loan is to be used to purchase the property, there are complications with the title or a third party such as a management company is involved.

Fees & Expenses Guide – (as at April 2021):

FREEHOLD SALE

Sale Price Less than £250,000.00 – All in £’s

Legal Fees 625.00 – 825.00
VAT 125.00  – 165.00
Money Transfer Administration Fee 30.00
VAT 6.00
Identification and Anti-Money Laundering Verification     8.33
VAT    1.67
Expenses
Land Registry Title / Land Charges Registry Information 13.20
Estimated Total 809.20 – 1049.20

 

Sale Price £250,001.00 – £500,000.00 – All in £’s

Legal Fees 750.00 – 1250.00
VAT 150.00  – 250.00
Money Transfer Administration Fee 30.00
VAT 6.00
Identification and Anti-Money Laundering Verification 8.33
VAT 1.67
Expenses:
Land Registry Title / Land Charges Registry Information 13.20
Estimated Total 959.20 – 1559.20

 

Sale Price £500,001.00 – £750,000.00 – All in £’s

Legal Fees 995.00 – 1395.00
VAT 199.00 – 279.00
Money Transfer Administration Fee 30.00
VAT 6.00
Identification and Anti-Money Laundering Verification 8.33
VAT 1.67
Expenses:
Land Registry Title / Land Charges Registry Information 13.20
Estimated Total 1,253.20 – 1,733.20

 

Properties with a value of over £750,000 vary greatly according to type and location, so further details will be required before we are able to provide an estimate of the likely fees and expenses. Please contact us on 01743 248545 or send an email to: mail@hatchers.co.uk.

  • Fees are monies paid to Hatchers for the work we undertake.
  • Expenses are monies that are paid to third parties, e.g. the amount payable for searches or charged by the Land Registry. These are charged at the price we pay for them. Standard expenses (other than any tax payable) are included in the above calculations.

Other Items

Additional charges will apply if any of the following matters are relevant:-

  • The title to the property is not registered at HM Land Registry
  • The property is subject to an estate management charge
  • There are restrictions, notices or more than one mortgage on the title

If you also have a property to buy then please click the following link to return to the main menu, and choose the relevant page to view the estimated fees likely for that transaction.

Speak to a Team Member

Call a member of our Residential Property team on 01743 248545 to hear more about our services