Cost illustration – property transactions

It is a regulatory requirement of The Solicitors Regulation Authority that Matthew & Matthew set out details of how this firm’s fees are calculated on its web site. The reason is to provide greater transparency and to assist you in making meaningful comparison between different firms of solicitors.

To this end we have set out below details of how this firm’s fees are calculated and how any disbursements (expenses) that have to be paid on such a transaction are calculated by the different service providers.

As each house is unique and each person’s circumstances are similarly unique, it is not possible here to provide you with a precise total as to the costs that will be incurred on each individual transaction. A clear written and comprehensive statement as to the anticipated cost of each transaction will be provided to you ahead of your instructions being received. Such statement will not be changed by this firm although the total figure may change should one of the service provides change their rates of charges.

Such things can and do happen and are outside this firm’s control. Such examples are where the Government change the rates of Stamp Duty Land Tax payable or where the Government changes the rates at which Vat Value Added Tax is payable. Such changes are beyond this firms control and additional costs will be passed onto you.

In order to assist you we have set out below the anticipated costs we would anticipate being charges in the following transactions;

Purchase of a freehold residential property

Our fees cover all of the work* required to complete the purchase of your new home, including dealing with registration at the Land Registry and dealing with the payment of Stamp Duty Land Tax (Stamp Duty) if the property is in England, or Land Transaction Tax (Land Tax) if the property you wish to buy is in Wales.

In order to assist you we have set out below the fees that we would expect to charge based on the following assumptions:-

(a) The property is within Bournemouth Borough

(b) That Environmental and Water Searches are required

(c) That you are not using mortgage finance to assist with the purchase.

(d) That the funds are coming from your own account.

(e) That you are an individual and purchasing the property in your sole name.

(f) That you are an UK resident over the age of 18 years

(g) That the purchase price of the property is £300,000

(h) That no further sum is being paid for fixtures and fittings

Fees and disbursements

• Fixed Legal fees* in the sum of £1,250 plus Vat – Current VAT rates
• Local Search fees – please see the current fees here – Local authority search fees (Bournemouth), Drainage and water search fees (Bournemouth)
  
• HM Land Registry fee – please see the current HM Land Registry fees here – HM Land Registry: Registration services fees
• Electronic money transfer fee of £35 Plus Vat (such sum includes an administration fee)
• VAT payable – please see the current Vat rates here – Current VAT rates

Estimated total of Disbursements (excluding Stamp Duty Land Tax – see below): £450

Due to the different rates charged by the different providers from time to time no precise figure can be given. We would recommend that you set a budget figure of between £1,800 and £2,300 plus Vat as calculated above. In addition you will also need to budget for Stamp Duty Land Tax at the prevailing rate as set out below.

Estimated Grand Total : £1,950 inclusive of Vat and disbursements but excluding Stamp Duty Land Tax

Disbursements

Disbursements are costs related to your matter that are payable to third parties, such as Land Registry fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.

Stamp Duty Land Tax (on purchase only)

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 here.

We shall provide you our client with a written statement as to the precise amount of Stamp Duty Land Tax payable at the time of instructions.

Estimated Total Costs – All of the firm’s client receive a clear written statement as to the total cost of the transaction at the time of instructing Matthew & Matthew. This cost statement will be tailored to your individual property purchase or sale.

Referral fee Matthew & Matthew does not have any referral fees arrangements and does not pay any referral fee or commission to introducers of work to the firm .

How long will my house purchase take?

How long it will take from your offer being accepted until you can move into your house will depend on a number of factors. The average process takes between 6 to 10 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 6 to 10 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 1 and 3 months.

Regardless of the time taken to complete your transaction this firm’s fees will not change (they will be fixed fees) unless your instructions change which requires us to carry out additional work on your behalf. Should such an event happen you will be provided with a written statement as to how much that additional work will cost at the time the instructions are given.

Stages of the process

The precise stages involved in the purchase of a residential property vary according to the circumstances. However, below we have suggested some key stages that you may wish to consider:

• 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
• Give you advice on all documents and information received
• Go through conditions of mortgage offer (if any) with you
• Send final contract to you for signature
• Draft Transfer
• Advise you on joint ownership
• Obtain pre-completion searches
• Agree completion date (date from which you will own the new property)
• Exchange contracts and notify you that this has happened
• Send you a statement explaining what monies are required from you and when.
• Arrange for all monies needed to be received from lender and you
• Complete purchase
• Deal with payment of Stamp Duty/Land Tax
• Deal with application for registration at the Land Registry

* Our fee assumes that:

1. this is a standard transaction and that no unforeseen matters arise including for example (but not limited to) (a) a defect in title is discovered that requires remedying prior to completion or (b) the preparation of additional documents ancillary to the main transaction (c) the fact that either planning consent or building regulation approval have not been obtained or (d) you do not provide us with crucial documents within a reasonable time of our request for them.
2. this is the assignment of an existing lease and is not the grant of a new lease
3. the transaction is concluded in a timely manner and no unforeseen complication arise
4. all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
5. no indemnity policies are required. Additional disbursements may apply if indemnity policies are required.

Purchase of a leasehold residential property

Our fees cover all the work* required to complete the purchase of your new home, including dealing with registration at the Land Registry and dealing with the payment of Stamp Duty Land Tax (Stamp Duty) if the property is in England, or Land Transaction Tax (Land Tax) if the property is in Wales.

In order to assist you we have set out below the fees that we would expect to charge based on the following assumptions:-

(a) The property is within Bournemouth Borough

(b) That Environmental and Water Searches are required

(c) That you are not using mortgage finance to assist with the purchase.

(d) That the funds are coming from your own account.

(e) That you are an individual and purchasing the property in your sole name.

(f) That you are an UK resident over the age of 18 years

(g) That the purchase price of the property is £300,000

(h) That no further sum is being paid for fixtures and fittings

Fees and disbursements

• Fixed Legal fees* in the sum of £1,425 plus Vat – Current VAT rates
• Local Search fees – please see the current fees here – Local authority search fees (Bournemouth), Drainage and water search fees (Bournemouth)
• Search fees – Local authority search fees (Bournemouth) , Drainage and water search fees (Bournemouth)
• HM Land Registry fee – HM Land Registry: Registration services fees
• Electronic money transfer fee of £35 Plus Vat (such sum includes an administration fee)
• VAT payable – please see the current Vat rates here – Current VAT rates

Estimated total of Disbursements (excluding Stamp Duty Land Tax – see below): £450

Due to the different rates charged by the different providers from time to time no precise figure can be given. We would recommend that you set a budget figure of between £2,200 and £2,500 plus Vat as calculated above. In addition you will also need to budget for Stamp Duty Land Tax at the prevailing rate as set out below.

Estimated Grand Total : £1,950 inclusive of Vat and disbursements but excluding Stamp Duty Land Tax

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.

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.

• HM Land Registry fee: – HM Land Registry: Registration services fees
• VAT on search fees – Current VAT rates
• Notice of Transfer fee – This fee if chargeable is set out in the lease and is payable to the freeholder/managing agents. Often the fee is between £50.00 – £150.00 plus VAT.
• Notice of Charge fee (if the property is to be mortgaged) – This fee is set out in the lease and is payable to the freeholder/managing agents. Often the fee is between £50.00 – £150.00 plus VAT.
• 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 £100.00 – £300.00 plus VAT.
• Certificate of Compliance fee – To be confirmed upon receipt of the lease, as can range between £100.00 – £300.00 plus VAT.

  *These fees vary from property to property and are dictated by the terms of the Lease. They 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.

• VAT on search fees – Current VAT rates

You should also be aware that ground rent and service charges 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.

Referral fee Matthew & Matthew does not have any referral fees arrangements and does not pay any referral fee or commission to introducers of work to the firm.

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.

The precise stages involved in the purchase of a residential leasehold property vary according to the circumstances. However, below we have suggested some key stages that you may wish to include:

• 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
• Give you advice on all documents and information received
• Go through conditions of mortgage offer (if any) with you.
• Send final contract to you for signature
• Draft Transfer
• Advise you on joint ownership
• Obtain pre-completion searches
• 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
• Send you a statement explaining what monies are required from you and when.
• Complete purchase
• Deal with payment of Stamp Duty/Land Tax
• Deal with application for registration at the Land Registry

How long will my house 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 to 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 6 to 10 weeks. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between 1 and 3 months or possibly considerably longer. In such a situation, additional charges would apply.

Regardless of the time taken to complete your transaction this firms fees will not change (they will be fixed fees) unless your instructions change which requires us to carry out additional work on your behalf. Should such an event happen you will be provided with a written statement as to how much that additional work will cost at the time the instructions are given.

* Our fee assumes that:

6. this is a standard transaction and that no unforeseen matters arise including for example (but not limited to) (a) a defect in title is discovered that requires remedying prior to completion or (b) the preparation of additional documents ancillary to the main transaction (c) the fact that either planning consent or building regulation approval have not been obtained or (d) you do not provide us with crucial documents within a reasonable time of our request for them.
7. this is the assignment of an existing lease and is not the grant of a new lease
8. the transaction is concluded in a timely manner and no unforeseen complication arise
9. all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation
10. no indemnity policies are required. Additional disbursements may apply if indemnity policies are required.