SELLING PROPERTY
Below is a general indication of the service we will provide for you but this may alter to reflect changes that occur.
The process begins when we receive instructions from you to sell your property, the agreed price and details of the Buyer. This may also come to us from the Estate Agent. Your Estate Agent will also send to us an Energy Performance Certificate.
We are required to prove your identity and we will ask you to provide information about the property as well as, details of any items to be sold with it or to be removed. We will also obtain information from the Land Registry regarding the property.
If the property is not freehold your ownership will be in the form of a Lease. In this situation the work will be more complex and we will have to obtain information from the Landlord and any Managing Agent they have appointed. This may incur additional fees.
Armed with all this information we will then prepare a Contract for the sale.
The Contract and all the information received will then be sent to the solicitors representing the Buyer.
They will examine this information and ask questions in accordance with the instructions they have received from the Buyer if they think the information supplied is either unclear or not complete.
When the Buyer’s solicitor is satisfied with all the information provided and has received satisfactory replies to any enquiries or investigations they have made it will then be possible to Exchange Contracts and we will report to you to take your further instructions regarding exchange of contracts and your preferred arrangements for completion.
Before taking the step to Exchange Contracts either party can decide that they do not wish to proceed and there are no financial consequences between the Parties but each Party will probably have their own legal fees to pay. The step of exchanging contracts creates a legal relationship between the parties. If after this step either party decides that they do not want to go ahead and finalise the transaction there are likely to be financial consequences.
At the time when contracts are exchanged the date for completing the transaction will be agreed. We will consult you to make sure that the date agreed is one that is acceptable to you. This date is known as the Completion Date and is the date when you must move out of the property if you have not already done so.
At Exchange the Buyers will also pay to us a deposit as part of the purchase price; this is usually 10% of the full price.
The period of time from receiving your initial instructions to exchange of contracts is variable but is approximately 10 weeks.
After Exchange of Contracts we will receive from the Buyer’s solicitor the legal document (the Transfer) that will transfer ownership from you to the Buyers, for approval and for signing by you. If there is a current mortgage we will also obtain from the Lender details of how much money must be sent to them to repay the mortgage on the Completion Date.
On the Completion Date we will receive the balance of the purchase monies and send the Transfer to the Buyer’s solicitor to transfer ownership of the property. If there is a mortgage we will also send money to the Lender to repay the loan and take steps to ensure that the Legal Charge is removed.
We will also pay the Estate Agents invoice if you wish us to do so.
When the balance of the purchase monies is received we will let you know that the sale has been completed. We also inform the Estate Agents they can give the keys of the property to the Buyers.
To finalise the transaction we will provide you with a financial statement showing all monies we have received and spent on your behalf and send you the balance.
The period of time from Exchange to Completion is variable but is usually about 2 weeks.
Selling: This is how the cost is worked out
It’s not one single figure but the total of a number of elements.
These costs are based on a property which is registered at the Land Registry and are only indicative because we do not know the full details of your transaction or circumstances.
If it is discovered that the legal title is defective or there are missing documents; or that Building Regulation Approvals or Planning Permissions or other approvals do not exist these will require additional work and are not included in these quoted costs. If those issues require additional work this may be reflected in additional fees being charged; we will inform you of the amount.
Professional Fees
The matrix below will show the amount of our fees for selling a freehold house of the value of your property and the related VAT.
For the sale of a leasehold property we will charge additional fees of £350 + VAT.
Typical disbursements include:
Land Registry documents up to £10.00
Electronic money transfer (incl VAT) £42.00
Landlord/Management Company (incl VAT) £200 - £400.00
BUYING PROPERTY
Below is a general indication of the service we will provide for you but this may alter to reflect changes that occur.
We will initially take instructions from you about the transaction including the price agreed, whether you will need a mortgage and whether you are also selling a property; in which case you might want us to co-ordinate the transactions to ensure that you complete both transactions on the same day.
We also need to know if the property is freehold or leasehold as this affects the amount and nature of the work to be done and the fees.
Whether you are a first-time buyer, or replacing your current home or buying for investment purposes will affect the amount of Stamp Duty Land Tax payable by you.
We are required to prove your identify and will need to know if you are buying on your own or with another person. We will ask you to provide information about the property and details of any items to be bought as part of the transaction. We will also need to clarify with you the availability and source of monies needed to fund the purchase.
The Solicitors for the Seller will provide us with a Contract for the Purchase together with a range of background information about the property.
If you are buying with the assistance of a mortgage we will initiate a range of searches which are obligatory as a condition of your loan; these searches are sent to the local Council, the water and drainage suppliers and also to check a range of environmental matters. If you will not have a mortgage we will discuss with you the benefit of making these searches and you can decide if they should be undertaken.
If the property is leasehold we will require from the seller’s solicitor additional information from the landlord and management company, which may be quite extensive.
We will examine all the information received and arising from our searches and discuss this with you. If there are areas of uncertainty we will make further enquiries. Once we are happy with all the information received we will be ready to Exchange Contracts and we will report to you to take your further instructions regarding exchange of contracts and your preferred arrangements for completion.
Before taking the step to Exchange Contracts either party can decide that they do not wish to proceed and there are no financial consequences between the Parties but each Party will probably have their own legal fees to pay. The step of exchanging contracts creates a legal relationship between the parties. If after this step either party decides that they do not want to go ahead and finalise the transaction there are likely to be financial consequences.
At the time when contracts are exchanged the date for completing the transaction will be agreed. We will consult with you to make sure that the date agreed is one that is acceptable to you. This date is known as the Completion Date and is the date when you will become the owner of the property and can move in. If you have a related sale we will seek to ensure that the Completion Date for both transactions is the same.
At Exchange you will have to pay to the Seller’s solicitor a deposit as part of the purchase price; this is usually 10% of the full price but can be less with agreement. The deposit received on a related sale is usually used as the deposit on your purchase. Sometimes additional money may be required from you.
The period of time from receiving your initial instructions to exchange of contracts is variable but is approximately 10 weeks.
After Exchange we will prepare the document which the Seller signs to transfer ownership of the property to you when they receive the balance of the purchase money. We will also make searches of the Land Registry to make sure that there have been no changes to the registered information initially provided to us.
If there is to be a mortgage we must also make a search to ensure that you are not bankrupt and we will send a report to the Lender asking that they send us the mortgage monies in time to complete the purchase on the agreed date.
On the Completion Date we will send the balance of the purchase monies to the Seller’s solicitors and receive confirmation that you will be able to collect the keys for the property; usually from the Estate Agent, and then move in.
Following Completion we will pay any Stamp Duty Land Tax that is due to be paid. We will also make an application to the Land Registry to register your ownership and any related mortgage. When that is completed we will provide you with details of your registration.
If you are buying a leasehold property we will also register your ownership with your Landlord and any relevant Management Company. The information received from the landlord and management company will disclose if it is necessary for you to enter into a special relationship with them and to take up shares and/or take an active role in the management company. We will provide you with the details of these requirements.
To finalise the transaction we will provide you with a financial statement showing all monies we have received and spent on your behalf and send you the balance.
The period of time from Exchange to Completion is variable but is usually about 2 weeks. But the time from Completion to finalisation of your registration can be quite long depending on the current number of applications made to the Land Registry; this can be a few months.
Buying: This is how the cost is worked out
It’s not one single figure but the total of a number of elements.
These costs are based on a freehold property which is registered at the Land Registry and are only indicative as we do not know the full details of your transaction or circumstances.
If it is discovered that the legal title is defective or there are missing documents; or that Building Regulation Approvals or Planning Permissions or other approvals do not exist these will require additional work and are not included in these quoted costs. If these issues require additional work this may be reflected in additional fees being charged. We will inform you of the amount.
The matrix below shows the amount of our fees for buying a freehold house of the value of your property and the related VAT.
For the purchase of a leasehold property, “new build” property and for a “help to buy” purchase an additional fee of £350 + VAT for each circumstance.
Disbursements (payments to third parties on your behalf)
In addition to the above fees the following costs will also usually be incurred:-
All these disbursement costs will be applicable whoever acts for you and there is unlikely to be any significant differences from one firm to another.
FEES FOR BUYING & SELLING PROPERTY
MORTGAGES & RE-MORTGAGES
Below is a general indication of the service we will provide for you but this may alter to reflect changes that occur.
Most mortgages are taken out when a property is bought. This section deals with the circumstances when a mortgage is obtained unrelated to a purchase.
In most circumstances the work closely resembles that of buying a property.
Mortgages and re-mortgages: This is how the cost is worked out
It’s not one single figure but the total of a number of elements.
These costs are based on a property which is registered at the Land Registry and are only indicative as we do not know the full details of your transaction or circumstances.
If it is discovered that the legal title is defective or there are missing documents; or that any required approvals do not exist these will require additional work and are not included in these quoted costs. You will be informed of any additional fees.
Professional Fees
The matrix below will show the amount of our fees for a mortgage or remortgage of the value of your intended mortgage;
ADMINISTRATION OF ESTATE (PROBATE)
Below is a general indication of the service we will provide for you but this may alter to reflect changes that occur.
The cost is not one single figure but the total of a number of elements.
These costs are based on an uncomplicated Estate are only indicative as we do not know the full details of the circumstances.
If it is discovered that there are missing documents; or that the legal title to any property to be sold is defective these will require additional work and are not included in these quoted
a) After a person dies they will have assets and liabilities that need to be dealt with by a surviving relative, friend or where the deceased has made a Will, an appointed Executor. In some instances the deceased may have few assets or an uncomplicated estate and so the administration may be considered simple. In many cases the administrator will prefer to employ the services of a professional Solicitor.
b) The services we provide are not charged at fixed prices or a percentage of the value of the Estate but based on our hourly rate (currently £280 per hour plus VAT) and the length of time taken to administer the estate from the receipt of initial instructions until the final distribution of the legacies to the beneficiaries. We anticipate this will take between 10 hours and 20 hours.
c) The exact cost will depend on the individual circumstances of the matter. For example if there is one beneficiary and few assets the costs will be at the lower end of the range. If there are many executors, beneficiaries or inheritance tax to pay the costs will be at the higher end. If there are disputes between beneficiaries on the division of assets or claims against the Estate the costs will exceed the higher range.
d) Initially only an estimate of the time can be given based on the information provided. When we have more substantive information we will provide a more accurate estimate of the length of time and consequent fees If there is an unforeseen complexity or you ask us to proceed in a way that involves additional work above our estimate you will be notified of this and provided with revised costs information.
e) There will also be third party costs to pay related to your matter which are likely to be:
We will handle the payment of these on your behalf to ensure a smoother process.
f) The conveyancing of any property to be sold will be costed under our fixed fee rates. All of our costs will be deducted from the Estate prior to the final distribution.
g) Whether the deceased has left a Will or not there are similar stages to be followed. The first is to obtain the Death Certificate and deal with the funeral directors. This can take time as mourning is important especially when you are very close to the deceased.
h) We will then ask you to provide to all of the deceased’s paperwork relating to all of their assets, such as the their home or other property, bank accounts, investments and shares and their liabilities such as a mortgage, any loans credit cards and bills. This information is needed to ascertain the full extent of the Estate at the date of death of the deceased.
i) Taxation plays an important part in the administration of the estate. The Deceased will need to pay income tax to the date of death and the Estate is taxed on income on assets such as dividends, rent on rented properties and interest from investments received after the date of death until distribution to the beneficiaries. This can only be ascertained when property is sold and the investments closed.
j) Inheritance tax may be payable but this depends on the amount of assets and the reliefs that can be claimed. We will prepare the tax forms appropriate to the Estate and send them to HMRC. Where necessary Inheritance Tax can be paid either up front or, where property is part of the assets, by instalments. We will request you to sign all tax forms.
k) The next stage is to obtain the Grant of Probate (usually just referred to as Probate) from the Probate Registry. To do this you will need to swear an oath before another solicitor. This oath and the Will (if one has been made) and the appropriate tax form will be sent to the Probate Registry along with the fee, currently £155 plus 50p for each copy.
l) When the application is processed Probate will be received by us which will enable us to claim the assets held by various organisations. You will need to sign forms as required by organisations to close bank and similar accounts, make insurance claims etc. We will send the application forms together with Probate to the organisations for them to forward the funds either to us, to our Firm’s Clients Account or to a destination approved by you. Probate will also be needed to sell any property.
m) We will prepare a report to inform you of the amount of the various assets collected, the income tax, if any, to be paid, the estate administration costs and thereby calculate the balance of the estate for distribution. The final stage is for you to approve the closure of the estate and the distribution to the beneficiaries.
As you can appreciate the timescale from start to finish can be anything from 3-6 months and in very complex cases, for example which involve overseas assets and pensions even longer. The timescale will also be affected by how long it might take to sell a property and the speed of response of the organisations and persons we have to deal with. You will be kept informed as to progress and given an estimate as to how long it will take to complete the outstanding stages.