Our team of expert residential property solicitors regularly advise on a wide range of residential property transactions across the UK.
We advise on:
- sale and purchases of freehold and leasehold properties (including properties being bought off plan, new builds and listed buildings)
- rights of first refusal
- borrowing by the owner
- advising lenders on purchases, sales and security documentation
Our Residential Real Estate expertise
Our residential property lawyers possess a wealth of experience in dealing with prime and super prime London houses and apartments, as well as houses in the country including listed properties.
Our Residential Conveyancing Guide outlines how we can help you at every stage of the conveyancing process.
Our clients appreciate our 'can do' attitude to transactions to ensure their matters proceed as quickly and smoothly as possible.
We understand how stressful it can be to acquire a property and we will guide you through the process as swiftly as possible with a hands on approach. We will advise you of the the most practical approach to ensure you meet your desired time frame. You will also have the comfort of knowing that you can speak to our team to talk through your concerns and the implications of any issues which may arise in respect of your transaction.
Our team are known in the market for their diligence and commitment to our clients. In recognition of this, we are ranked in the Chambers and Partners High-Net Worth Guide 2022.
We are always on hand to provide advice when you need it. We work tirelessly to help you secure your property and overcome any challenges which may arise during the process.
The team will collaborate with other practice areas within Kingsley Napley to structure your transaction the most productive way. We work in conjunction with the private client (tax), corporate and commercial, or immigration teams where necessary to assist achieving your wider goals.
recent transactions
Celebrity client and planning issues
Acting on the purchase of an £8 million property in Outer London for a celebrity client. Following a bidding war, we successfully negotiated and agreed a lockout agreement within 24 hours to secure an exclusivity period to complete the purchase. We undertook the necessary due diligence to ensure that there were no restriction to the client’s proposed demolition of the existing building and construction of a new family home as they intended. We collaborated with their architect and project manager to ensure the new property plans took into account the constraints of the development site. We also utilised connections with third parties professionals to resolve environmental issues.
Middle Eastern client and high value property
Acting on the time pressured purchase of a £40 million penthouse in a luxurious central London location for a Middle Eastern high net worth individual covering multiple jurisdictions including Switzerland, USA, Iraq and the Bahamas. Our familiarity with the development, fine-tuned KYC procedures and experience with clients from sensitive jurisdictions facilitated delivering on such a tight timescale. Our holistic approach incorporating the expertise of our Private Client department allowed us to structure the acquisition in a manner that achieved the client’s succession planning goals and protected the client’s confidentiality. We worked with the client’s family office and bankers to ensure that the client could complete the purchase before the deadline.
Chelsea new build
Acting for a businessman on the purchase of a high class new build development in Chelsea for over £20m. The matter involved multiple jurisdictions. To ensure that completion took place on the agreed date, we travelled to meet the client at a private terminal of an airport where the client’s charted plane landed for one hour before continuing to Monaco in order to go through the terms of the lease and to sign the lease.
Country estate matter
We acted on the sale of a large country estate incorporating a stud farm, agricultural land and multiple buildings which had been owned by the family of a Peer of the Realm for 25 years for over £8 million. We provided guidance on identifying information required by the buyer (including that needed for agricultural claims) due to a family death. Numerous properties on the estate were let out to employees and we therefore worked alongside our Employment team to ensure that there were no employment issues in addition to reviewing the occupational documents to allow for vacant possession to be provided on completion.
OUR FEES ON RESIDENTIAL CONVEYANCING
Most of our services are offered on an hourly rate basis and as many of our clients’ matters are complex and often involve multiple parties, there is rarely a typical case. Our clients are given an estimate of costs after our initial meeting or as part of the engagement process. There are some areas where we are able to be more indicative and, as in accordance with the Solicitors Regulation Authority (SRA) guidance on price transparency, we have published our price and service information where it is possible to be upfront about charges without knowing all the details of the matter.
PURCHASE OF A FREEHOLD OR LEASEHOLD RESIDENTIAL PROPERTY
Our fee covers all the work required to complete the purchase of your property, including advising you on any funding from your bank, dealing with registration at the Land Registry and dealing with payment of Stamp Duty Land Tax (SDLT) if the property is in England, or Land Transaction Tax (Land Tax) if the property you wish to buy is in Wales.
Conveyancer’s fees and disbursements:
We base our fees for standard purchases on the following scaled rates:
- minimum fee of £4,000
- up to £1,000,000 0.5% of the purchase price
- up to £2,000,000 0.4% of the purchase price
- up to £3,000,000 0.3% of the purchase price
- up to £5,000,000 0.25% of the purchase price
- in excess of £5,000,000 fee to be agreed
The above does not apply to the purchase of apartments and new build houses, for which our scaled rates are:
- minimum fee of £4,500
- up to £1,000,000 0.6% of the purchase price
- up to £2,000,000 0.5% of the purchase price
- up to £3,000,000 0.35 % of the purchase price
- up to £5,000,000 0.3% of the purchase price
- in excess of £5,000,000 fee to be agreed
Tax advice
Our fee does not include tax advice, other than in connection with the payment of SDLT except where specialist advice is required due to the nature of the property (e.g the property is mixed use or a multiple dwelling). If you do require tax advice on how to structure your purchase we have a tax consultant who can provide advice.
Disbursements
Disbursements are costs related to your matter that are payable to third parties, such as search fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.
- HM Land Registry fee: The cost will be between £20 to £910. These fees vary and are based on the purchase price of the property. We can give you an accurate figure once we know the purchase price of the property.
- Search fees: The cost will be between £350 to £700. These fees vary due to where the property is located (for instance the local authority fees are different for each local authority and we may need to do a specific search for your property due to its location). We can give you an accurate figure once we have sight of your specific documents and know the location of your property
- VAT at 20% on search fees
- Electronic money transfer fee: £10 plus VAT (£12 total) for each same day CHAPS and £3 plus VAT (£3.60 total) for a three day BACS
- VAT at 20%
If you are buying a leasehold property there are certain disbursements which will be set out in the individual lease relating to the Property. The additional leasehold disbursements which we anticipate will apply are set out separately below. This list is not exhaustive and other disbursements may apply depending on the term of the lease. We will update you on the specific fees upon receipt and review of the lease from the seller's solicitors.
Anticipated Disbursements*
- Notice of Transfer fee: This fee if chargeable is set out in the lease. Often the fee is between £50- £150.
- Notice of Charge fee: (if the property is to be mortgaged) This fee is set out in the lease. Often the fee is between £50 and £150.
- Deed of Covenant fee: This fee is provided by the management company for the property and can be difficult to estimate. Often it is between £150 and £300.
- Certificate of Compliance fee: To be confirmed upon receipt of the lease, as can range between £50 – £150.
*These fees vary from property to property and can on occasion be significantly more than the ranges given above. We can give you an accurate figure once we have sight of your specific documents.
You should also be aware that ground rent and service charge are likely to apply throughout your ownership of the property. We will confirm the ground rent and the anticipated service charge as soon as this we receive this information.
Stamp Duty Land Tax
This depends on the purchase price of your property. You can calculate the amount you will need to pay by using HMRC's website or if the property is located in Wales by using the Welsh Revenue Authority's website.
Stages of a purchase
The precise stages involved in the purchase of a residential freehold and leasehold property vary according to the circumstances. The stages involved for buying a freehold or leasehold property and our scope of work includes:
- Taking your instructions and giving you initial advice
- Checking finances are in place to fund purchase and contact lender's solicitors if needed
- Negotiating and agreeing the sale and purchase agreement
- Submitting searches in relation to the Property, reviewing the search results and raising additional enquiries where relevant
- Reviewing the seller’s title pack to the Property comprising title information, tenancy documentation and planning information
- Obtaining further planning documentation if required
- Reviewing the standard enquiries provided by the buyer and raising additional enquiries where relevant
- Preparing a report on all the documents and information received
- Going through the conditions of any mortgage offer
- Sending you the final contract for signature
- Drafting, negotiating and agreeing the form of transfer to the buyer
- Advising you on joint ownership
- Obtaining pre-completion searches
- Agreeing the completion date (the date from which you own the property)
- Exchanging contracts and notifying you that this has happened
- Arranging for all monies needed to be received from lender and you
- Completing the purchase
- Dealing with the post completion formalities including:
- with input and authority from you, preparing and submitting the stamp duty land tax return and the stamp duty land tax due to HM Revenue & Customs
- submitting the Land Registry application in relation to the purchase of the property
- Arranging to serve a notice of assignment or a notice of charge on the landlord or managing agent
How long will my purchase take?
How long it will take from your offer being accepted until you can move in to your house will depend on a number of factors. The average process takes between 6-12 weeks. It can be quicker or slower, depending on the parties in the chain. For example, if you are a first time buyer, purchasing a new build property with a mortgage in principle, it could take 4 weeks to exchange. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 2 and 3 months to exchange. In such, a situation additional charges would apply.
SALE OF A FREEHOLD OR LEASEHOLD RESIDENTIAL PROPERTY
Our fee covers all the work required to complete the sale of your property, including repaying any loan to a bank.
Conveyancer’s fees and disbursements:
We base our fees for standard sales on the following scaled rates:
- minimum fee capped at £2,500
- up to £500,000 0.6% of the purchase price
- up to £1,000,000 0.4% of the purchase price
- up to £2,000,000 0.35% of the purchase price
- up to £3,000,000 0.3% of the purchase price
- up to £5,000,000 0.25% of the purchase price
- in excess of £5,000,000 fee to be agreed
Our fees are exclusive of Value Added Tax (currently 20%) and disbursements.
Disbursements are costs related to your matter that are payable to third parties, such as landlord’s fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.
- HM Land Registry fee: The cost will be between £3 to £12. These fees vary on what documents we need to obtain from the Land Registry. We can give you an accurate figure once we know the purchase price.
- Planning and building regulation copy documentation: The cost will be between £10 to £75. These fees vary depending on each local authority. We can give you an accurate figure once we know what we need to obtain.
- Electronic money transfer fee: £10 plus VAT (£12 total) for each same day CHAPS and £3 plus VAT (£3.60 total) for a three day BACS
- VAT at 20%
There are certain disbursements which will be set out in the individual lease relating to the Property. The disbursements which we anticipate will apply are set out separately below. This list is not exhaustive and other disbursements may apply depending on the term of the lease. We will update you on the specific fees upon receipt and review of the lease from the seller's solicitors.
- Management pack: This fee is provided by the landlord or management company for the property and can be difficult to estimate. Often it is between £250 and £500.
- Licence to assign fee: This fee is provided by the landlord or management company for the property and can be difficult to estimate. Often it is between £500 and £750.
- Deed of Covenant fee: This fee is provided by the management company for the property and can be difficult to estimate. Often it is between £150 and £300.
Stages of a sale
The precise stages involved in the sale of a residential freehold and leasehold property vary according to the circumstances. The stages for selling a freehold or leasehold property and our scope of work includes:
- Taking your instructions and give you initial advice
- Preparing a sales pack comprising title information, tenancy documentation, planning information and standard replies to enquiries (with your input)
- Drafting, negotiating and agreeing the sale and purchase agreement
- Negotiating and agreeing the form of transfer to the buyer
- Dealing with additional enquiries raised by the buyer’s solicitors and preparing replies to those enquiries with your input
- Send final contract to you for signature
- Advising you on the terms of the sale
- Agreeing a completion date (date from which you will sell the property)
- Exchange contracts and notify you that this has happened
- Completing the purchase
- Repaying any bank loan, agents fees and sending you the net proceeds of sale
MORTGAGES OR RE-MORTGAGES
Our fee covers all the work required to complete the mortgage or re-mortgage of your property, including advising you on any funding from your bank and dealing with registration at the Land Registry.
Conveyancer’s fees and disbursements:
We base our fees for mortgages or re-mortgages on the following scaled rates:
- minimum fee capped at £2,000
- up to £500,000 0.6% of the purchase price
- up to £1,000,000 0.4% of the purchase price
- up to £2,000,000 0.35% of the purchase price
- up to £3,000,000 0.3% of the purchase price
- up to £5,000,000 0.25% of the purchase price
- in excess of £5,000,000 fee to be agreed
Our fees are exclusive of Value Added Tax (currently 20%) and disbursements.
Disbursements
Disbursements are costs related to your matter that are payable to third parties, such as search fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.
- HM Land Registry fee: The cost will be between £20 to £910. These fees vary and are based on the mortgage. We can give you an accurate figure once we know the purchase price of the property.
- Search fees: The cost will be between £350 to £700. These fees vary due to where the property is located and what the bank requires (for instance the local authority fees are different for each local authority and we may need to do a specific search for your property due to its location). We can give you an accurate figure once we have sight of your specific documents and know the location of your property.
- VAT at 20% on search fees
- Electronic money transfer fee: £10 plus VAT (£12 total) for each same day CHAPS and £3 plus VAT (£3.60 total) for a three day BACS
- VAT at 20%
If you are mortgaging or re-mortgaging a leasehold property there are certain disbursements which will be set out in the individual lease relating to the Property. The additional leasehold disbursements which we anticipate will apply are set out separately below. This list is not exhaustive and other disbursements may apply depending on the term of the lease. We will update you on the specific fees upon receipt and review of the lease from the seller's solicitors.
Anticipated Disbursements*
- Management pack: This fee is provided by the landlord or management company for the property and can be difficult to estimate. Often it is between £250 and £500.
- Notice of Charge fee: (if the property is to be mortgaged) This fee is set out in the lease. Often the fee is between £50 and £150.
- Certificate of Compliance fee: To be confirmed upon receipt of the lease, as can range between £50 – £150.
*These fees vary from property to property and can on occasion be significantly more than the ranges given above. We can give you an accurate figure once we have sight of your specific documents.
Stages of a mortgage or re-mortgage
The precise stages involved in the mortgage or re-mortgage of a residential freehold and leasehold property vary according to the circumstances. Our scope of work and stages involved for the mortgage or re-mortgage of a freehold or leasehold property includes:
- Taking your instructions and giving you initial advice
- Checking finances are in place to fund purchase and contact lender's solicitors if needed
- Submitting searches in relation to the Property, reviewing the search results and raising additional enquiries where relevant
- Obtaining further planning documentation if required
- Preparing a report to the bank
- Going through the conditions of any mortgage offer
- Sending you the mortgage documents for signature
- Obtaining pre-completion searches
- Agreeing the completion date (the date from which the mortgage or re-mortgage)
- Arranging for all monies needed to be received from lender and you
- Completing the mortgage or re-mortgage
- Dealing with the post completion formalities including:
- submitting the Land Registry application in relation to the purchase of the property
- Arranging to serve a notice of charge on the landlord or managing agent
How long will my mortgage or re-mortgage take?
How long it will take from your mortgage offer being accepted until we complete the mortgage will depend on a number of factors. The average process takes between 4 - 8 weeks. It can be quicker or slower, depending on the banks requirements.
All our fee estimates make the following assumptions:
- We act on the basis of our scope of work which will reflect the agreed heads of terms for the sale, and the transaction does not change materially from these heads;
- We draft or comment on all documents which directly concern the transaction, but we would need to charge separately for any additional documents;
- If a particular issue is identified during the transaction which requires more detailed input in order to be resolved satisfactorily, then this would be quoted for separately;
- If the title to the property is particularly complex or if there are superior titles or other interests in the property which we were not anticipating to have to review then we would need to charge separately for those additional elements;
- We will quote separately if you require any form of construction advice;
- The transaction is concluded in a timely manner and no unforeseen complication arise;
- All parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation;
- No indemnity policies are required. Additional disbursements may apply if indemnity policies are required;
- That any relevant building regulation(s) or planning permission(s) have been obtained for any works at the property;
- That when we request crucial documents from you, you have provided them to us; and
- That specialist SDLT advice is not required.
WHAT CLIENTS AND DIRECTORIES HAVE SAID
Kingsley Napley is without doubt the leading law firm when it comes to crypto-backed property purchases. They understand the nuances of crypto technology, how funds are transferred and, most importantly, what the risks are."
The Legal 500, 2024
They are willing to deploy risk solutions in order to increase their knowledge and comfort in dealing with the sector."
The Legal 500, 2024
ALL of the people we have dealt with at KN are innovative, responsive, extremely thorough and natural problem solvers. These traits have allowed them to take a clear lead when it comes to onboarding crypto clients"
The Legal 500, 2024
The team has extensive experience of acting for high-net-worth individuals and those in the public eye. These can be some of the most challenging clients to work for. Not only do they have the expertise in this area, they are adept at handling such clients and matters sensitively, with utmost discretion and with a very genuine personal touch"
The Legal 500 UK, 2021
The team are great because they combine utter professionalism with a proper commercial nous"
The Legal 500, 2020
Bethan Owen and Paul Harbour in particular are exceptionally able residential property lawyers who always strive to solve rather than create legal problems, while maintaining very high ethical standards, working incredibly hard and doing it all with good humour and composure."
The Legal 500, 2020
One interviewee praises the lawyers at the firm for their "genuine engagement."
Chambers and Partners HNW Guide, 2020
Just easy to deal with. It's a nice, good team of people." Another source states that "they are all very client-focused, knowledgeable and approachable."
Chambers and Partners HNW Guide, 2018
approachable" and "friendly"
Chambers and Partners HNW Guide, 2018
I always enjoy working with them"
Chambers and Partners HNW Guide, 2018
They are very thorough, knowledgeable and good at problem solving."
Chambers and Partners UK Guide, 2016
...sensible, realistic view of cases - seizing only the points worth arguing..."
Chambers and Partners UK Guide
FREQUENTLY ASKED QUESTIONS
Please note that the questions and answers on this page are for general information only and must not be used as a substitute for legal advice. You should always take legal advice which is tailored to your specific circumstances.
What is the difference between a freehold and a leasehold property?
“Freehold” and “leasehold” are two different ways that you can own a property.
With freehold ownership, you own the land and any buildings on it outright. Subject to certain exceptions, you can do what you like with the property. This type of ownership is common for houses.
If you own a leasehold interest in a property, you do not own the land or building containing the property. You are granted a lease which gives you an exclusive right to occupy the property (either by the freehold owner or an existing leasehold owner) for a certain period of time. At the end of that period, the property reverts to the freeholder. Your occupation will be subject to certain conditions which are set out in the lease. This type of ownership is common for flats. Leases can be for terms of 99 to 999 years and these are considered to be equivalent to outright ownership as the freeholder is unlikely to get the property back during their lifetime.
End.
What does share of freehold mean?
Buying a share of the freehold means that, as well as acquiring a leasehold interest in a flat, you will become a joint owner of the freehold interest in the building containing the flat. Put simply, you will own a flat and a share of the building containing your flat.
The advantage of this is that you will have a say in how the building is managed. However, you will also take on a shared responsibility for the management and maintenance of the building.
There are two main ways that this can be structured:
- The freehold is owned by the individual leaseholders in the building in their own names (common for small buildings)
- The freehold is owned by a company and each leaseholder becomes a shareholder of that company (common for larger buildings/developments)
End.
What is the process to purchase a property in England and Wales?
There are four basic stages to purchasing a property:
Stage 1: Investigating the Property
The first stage of the process is to find out as much information about the property as possible, to make sure that the seller is legally able to transfer the property to you and that there is nothing affecting the property that might impact on your use and enjoyment of it.
This investigation is carried out before exchange of contracts as, once you exchange, you are contractually bound to purchase the Property.
The seller will provide a standard pack of information, including a draft contract, title information (including the lease if it is a leasehold property), replies to general enquiries and any relevant planning and construction information.In addition, your solicitor will carry out searches (see below for further information at question 7) and raise additional enquiries. Your solicitor will prepare a report for you on the Property and any issues affecting it.
Stage 2: Exchange of Contracts
If you are satisfied with the results of the property investigation, you can proceed to exchange of contracts. This involves you entering into a contract with the seller to purchase the Property on the terms of the contract. The contract will include a date for completion.
You will typically have to pay a deposit to the seller on exchange of contracts. The standard deposit is 10% of the purchase price.
Stage 3: Completion
On the day of completion, the balance of the purchase price is paid to the seller’s solicitors and the transfer deed or lease for the Property is dated. Your solicitor will send you a transfer deed or lease to sign prior to completion. This transfers the legal ownership in the Property to you.
Following completion, you will need to pay any Stamp Duty Land Tax that is due on the purchase price (see question 17 for further information).
Stage 4: Registration
Where you acquire a freehold or leasehold interest, the purchase will not be complete until the transfer or lease is registered at the Land Registry.
Your solicitor will apply to the Land Registry for you to be registered as the owner (known as the registered proprietor) of the Property.Once this has been completed, the Land Registry will provide an updated copy of the title register for the Property, showing you as the owner.This is proof that you own the Property.
The above is a very simple overview. Please refer to our Residential Conveyancing Guide or contact us for more information.
End.
What is the process to sell a property in England and Wales?
There are three basic stages to selling a Property:
Step 1: Preparing the Contract and Information Pack
Your solicitor will prepare a draft sale contract and a put together a pack of standard information about the Property to be sent to the buyer’s solicitors.
As part of this pack you will be asked to complete certain standard transaction forms. These transaction forms were created by the Law Society to assist Sellers to provide the standard information that buyers will require. Most purchases will require you to complete a Property Information Form (TA6), containing general information about the Property, and a Fittings and Contents Form (TA10), setting out what is included and excluded from the sale price.Your solicitor can assist you to complete these forms.
The legal pack will also include copies of the Land Registry title register for the Property and planning and construction information.
If the Property is leasehold, you will be asked to provide a management pack from your landlord or managing agents (containing information on the rent and service charge etc.) and complete a Leasehold Property Information Form (TA7).
The buyer’s solicitors will review the information provided, together with the results of their searches, and may raise additional enquiries.
Step 2: Exchange of Contracts
Once the buyer is satisfied with the information provided, you can proceed to exchange of contracts. This involves you entering into a contract with the buyer to sell the Property to them on the terms of the contract. The contract will include a date for completion. This creates a legally binding obligation on the parties to complete the sale.
The buyer will typically pay a deposit on exchange of contracts. The standard deposit is 10% of the purchase price.
Step 3: Completion
On completion, the balance of the purchase price will be sent to your solicitor and the transfer deed for the Property or the lease will be dated. Your solicitor will send you a transfer or lease to sign before completion.
The completion will transfer the legal ownership of the Property to the buyer. You will then hand over the keys and any deeds or documents that you hold for the Property to the buyer.
Your solicitor will send funds to your lender to discharge your existing mortgage (if you have one), will pay the estate agents fee and any other disbursements and send the balance of funds to you.
End.
What documents do I need to provide to a purchaser?
The buyer will want to see the following documents:
- Copies of the Land Registry title register for the Property and any relevant documents referred to on the title register (including the Lease of the Property). Your solicitor will be able to obtain these for you.
-
Completed Law Society Transaction Forms
The Law Society has created a series of standard forms to assist sellers to provide the standard information that buyers will require.Most sales will require you to complete a Property Information Form (TA6), containing general information about the property, and a Fittings and Contents Form (TA10), setting out what is included and excluded from the sale price.
If you are selling a leasehold property, you will need to complete a Leasehold Information Form (TA7) -
For leasehold properties, you will need to provide a Management Information Pack. This can be obtained from your landlord or managing agent and will contain information on the rent, service charge and management of the Property.
-
A valid Energy Performance Certificate (EPC)
- Any guarantees, warranties, planning or building regulations documents for works carried out on the Property.
End.
I have lost my certificates and guarantees. What do I do?
The buyer will want to see as much information about the property as possible and will insist on seeing certain documents, such as planning and building regulations approvals, guarantees and warranties (particularly new build warranties), safety certificates for gas/electrical installations and share certificates (if applicable) for any freehold or management company.
If these cannot be found, some options are:
- Obtain a replacement copy. Local councils will hold copies of certain building regulations and planning documentation. Additional copies of FENSA certificates or new build warranties (e.g. NHBC) can be obtained from the relevant provider. There will often be a fee payable for these.
- Obtain indemnity insurance (see question 21 for further information) for the lost certificate or guarantee. This can often be the most cost effective solution. If you want to take advantage of this, it is important that you do not contact the local authority or other provider regarding the missing certificate as this will invalidate the insurance policy.
- For lost share certificates, you may be able to provide a signed letter of indemnity to the relevant company to allow your share to be transferred to the buyer without the original share certificate. This letter essentially confirms that the share certificate has been lost or destroyed.
End.
What are searches?
When acting for a buyer, it is standard practice to carry out searches on a property.
Searches are enquiries submitted to various authorities, including the local council, to provide you with detailed information about the property that you are looking to purchase. Searches are an essential part of the investigation process, as they reveal a variety of factors that may benefit or burden a property, including issues which may not be discoverable by simply viewing the property.
Typical searches that are carried out on most transactions are a local authority search, index map search, drainage and water search, chancel check search and environmental search.
End.
Do I need a survey?
Although surveys are not compulsory (unless required by your mortgage provider), they are an essential part of the investigation process. A survey will provide information on the physical condition of your property which may not be apparent from a simple viewing of the property. For example, your survey will reveal physical defects, potential structural issues and highlight areas that will require repair works (and therefore expenditure) in the future.
Once you have exchanged contracts, you will not be entitled to any compensation from the seller if you have to put right any defects. As such, a survey is a vital tool in ensuring that you are aware of the true condition that your property is in.
End.
What is the difference between a survey and valuation?
A survey will review the physical condition of your property. Your survey may comment on the value of the property, however this will be in the context of the effect of the physical condition on the value and the expenditure required to rectify any potential defects.
In contrast, a valuation will provide an open market value for your property and will incorporate a number of additional factors, such as the location, potential development value and the local market. A formal valuation is likely to be required by your mortgage provider.
End.
If we buy the property together should we hold the property as beneficial joint tenants or tenants in common?
These are the two main types of joint ownership for property:
-
Tenants In Common
As a tenant in common, each owner owns a separate share in the property. Each owner can give away, sell or mortgage their share and, if they die, they can leave their share to whomever they choose in their will.
The owners do not have to own equal shares and owners can be given a greater share if, for example, they contributed more towards the purchase price. Their shares can be fixed or can vary over time. - Joint Tenancy
In a joint tenancy, the whole property belongs to all of the owners jointly. The owners do not own a specific share. If an owner dies, the property automatically passes to the other owner or owners. They cannot gift a share of the property in a will.
How you hold the property is likely to depend on who you purchase the property with. It is common for married couples to own property as joint tenants. Friends or siblings are more likely to want to own the property as tenants in common.
Holding the property as tenants in common is advisable where one party has contributed substantially more to the purchase price than the other party.
There may also be tax implications of owning the property a particular way so you will need to discuss your specific situation with your solicitor before deciding which is the best way for you to own your property.
End.
What is the difference between exchange and completion?
On exchange of contracts, the buyer becomes legally bound to buy and the seller becomes legally bound to sell the property on an agreed date (known as the completion date). Before exchange, neither party is bound to proceed with the transaction and can pull out at any time.The buyer will usually pay a deposit (typically 10% of the purchase price) on exchange. They will lose this deposit if they fail to complete the purchase.The buyer is said to take the “beneficial interest” in the property from the date of exchange and this can have certain implications (see the section on insurance below at question 13).
There will usually be a gap between exchange and completion. The dates are agreed between the parties but will usually be a few weeks.
On completion, the legal interest in the property is transferred to the buyer. The buyer pays the seller the balance of the purchase price and a transfer deed is completed to transfer the seller’s interest in the property. The transfer will then need to be registered at the Land Registry.
End.
Can I exchange before I have my mortgage offer?
If you will require a mortgage to purchase the property, it is not advisable to exchange prior to receipt of the mortgage offer.
Once you exchange contracts you will become legally bound to purchase the property. If for some reason your mortgage offer is rejected and you do not have sufficient funds to pay the full purchase price on completion, you will be in breach of contract and would lose your deposit.
End.
When do I need to put in place buildings insurance?
If you are buying a freehold property, you will typically need to put buildings insurance in place on exchange of contracts. You should make sure that you have this lined up before exchange.
The standard position is that a buyer takes the risk in a property from the date that the contract is exchanged (even if the seller remains in occupation). This means that if the property is damaged or destroyed between exchange and completion you will still be obliged to buy the property for the price stated in the contract.
If you are buying a leasehold property, it is likely that the property is and will continue to be insured by the landlord. You will not need to obtain buildings insurance for the property.
End.
What happens between exchange and completion?
The parties are committed to the transaction and can make firm arrangements to move on the agreed completion date.
The transfer deed or lease will need to be signed by the parties in readiness for completion.This will be dated on completion.
The buyer’s solicitor will confirm the practical arrangements for completion with the seller’s solicitors and carry out pre-completion searches, to identify matters that may have changed from the pre-exchange searches.
The buyer will need to arrange for the balance of the purchase price to be sent to their solicitors. This should be with their solicitors in cleared funds the day before completion. The buyer will also need to approve a Stamp Duty Land Tax (SDLT) return for the purchase (if applicable) and ensure that their solicitors have funds to pay the SDLT following completion. If purchasing with a mortgage, mortgage funds will be requested from the lender.
If the seller has a mortgage on the property, their solicitor will obtain the final figure required to pay off the mortgage on completion.
End.
What happens on completion?
The buyer’s solicitor will transfer the balance of the purchase price to the seller’s solicitors and the transfer deed or lease will be dated. The buyer will become the owner of the property and will be able to collect the keys.
The seller’s solicitor will arrange for any existing mortgage to be redeemed and will then transfer the purchase price to the seller. There may be additional fees to be settled, such as the estate agent’s invoice.
End.
When can I collect the keys?
On completion. Once the seller’s solicitor has received the full purchase price from your solicitors, they will confirm that the keys can be released to you. You can then collect these from the estate agent or seller’s solicitor (depending on who is holding the keys).
End.
What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a tax on land transactions in England (a different tax applies in Wales). You must pay SDLT if you acquire property over a certain price (currently £250,000). This would include buying a property (whether this is freehold or leasehold) and entering into a new long lease of a property.
SDLT will be payable on the amount that you pay for the property and is charged as a percentage of the purchase price. There are certain reliefs and exemptions available.
You will have to pay a SDLT surcharge of 3% on top of the normal SDLT rates if you already own a property and the transaction will result in you owning two or more properties (for example, if you are purchasing a second home or buy-to-let property). This will apply even if your existing property is outside the UK.
A completed SDLT return must be sent to HMRC within 14 days of completion. Your solicitor will be able to assist you with completing the return and paying any tax due.
End.
What are disbursements?
A “disbursement” is used to describe an additional expense or payment that will need to be paid in addition to your legal fees.
Typical disbursements that arise on a purchase of property are the search fees, SDLT and Land Registry fees for registering you as the new proprietor of the property. Where the property is leasehold, the lease may require you to pay fees to the landlord or their managing agent as part of the purchase, for example, to formally notify the landlord that the lease is being transferred to you.
End.
How do I extend my lease?
There are two ways that you can obtain a lease extension:
- Privately negotiate a lease extension with your landlord; or
- Claim a statutory lease extension under the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) (for flats) or the Leasehold Reform Act 1967 (for houses)
Although people refer to a “lease extension”, what you will actually obtain is a new lease of your property for a longer term in substitution for your existing lease. You will have to pay a premium (i.e. a purchase price) to your landlord for the new lease.
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Bethan Owen is constantly fighting her client’s corner and is so proactive in getting transactions over the line. If she is acting for you, there will be no time wasted on her part. She is a great collaborator with others."
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