Pricing Transparency

Pricing Transparency

As of 6 December 2018, new SRA transparency rules require us to provide a range of prices for certain services.

This document sets out the pricing guidance for the conveyancing of residential property covering:

• The Purchase of Freehold or Leasehold properties; and

• The Sale of Freehold or Leasehold properties.

Purchase of a Freehold residential property

Legal Fee

Where Steinfeld Law is instructed in relation to the purchase of a residential freehold property, our fees would typically range from £3,000-£15,000. This range is based on hourly rates between £125 and £425. The applicable hourly rate will depend on the overall complexity of the matter as this shall impact on the required experience of those individuals dealing with the transaction.

This above range does not include VAT which is currently at 20%, nor does it include any disbursements (see below). Additionally, the above range assumes that this is a standard transaction and that no unforeseen matters arrive. Details of any unforeseen matters will be provided to you in the firm’s engagement letter prior to the work being undertook, along with a more bespoke fee estimate having regard to the precise nature and scope of the proposed transaction.

What is included in the fee?

Our fees cover all of the work required to complete the purchase of your new property, including dealing with registration at the Land Registry and the handling of payment of Stamp Duty Land Tax (SDLT).

The work is likely to consist of the following:

• taking instructions from you and liaising with you generally throughout the matter;

• a thorough investigation into the seller’s title to the property;

• negotiating the purchase agreement;

• obtaining and considering local authority and other relevant searches, and producing a full report on title;

• raising and considering replies to all pre-contract enquiries;

• preparing and submitting an SDLT return to HM Revenue & Customs; and

• completing the purchase and confirming all registration formalities.

Disbursements

Disbursements are costs related to your matter that are payable to third parties and they do not form part of our fee. We handle the payment of the disbursements on your behalf to ensure a smooth process, but we may require the receipt of some funds in the interim to cover such expenses.

Whilst disbursements do vary from matter to matter, in a typical residential conveyancing matter we would expect to see some, if not all, of the following disbursements:

• search fees

• HM Land Registry fees

• Electronic money / banking transfer fees

Stamp Duty Land Tax (SDLT)

The amount of SDLT payable will depend on the purchase price of the property and your personal circumstances, for example whether or not you are a first-time buyer. You can calculate the amount you will need to pay using the HMRC SDLT Calculator, which can be found here. We will require receipt of funds for SDLT before we can complete your purchase.

How long will my purchase take?

There are a number of factors that will impact the time it will take between your offer being accepted and the matter completing. On average, the purchase of a freehold residential property takes between 6-16 weeks.

A range of external factors can, however, cause such timescales to be altered, particularly if your transaction forms part of a chain. In these circumstances, where the transaction looks as though it may become more prolonged, we will contact you to revisit our original fee estimate.

What are the stages involved?

The precise stages involved in the purchase of a freehold residential property vary according to the circumstances, but we have set out below what we consider to be the key stages common to most transactions:

• Reviewing and agreeing a draft contract with the seller’s solicitors;

• Reviewing replies to pre-contract enquiries, raising and reviewing replies to any additional enquiries;

• Reviewing local authority and other relevant searches, and compiling our findings into a full report on title;

• Exchanging contracts;

• Preparing and agreeing the transfer with the Seller’s solicitors;

• Raising and reviewing replies to requisition on title;

• Preparing an SDLT return;

• Preparing and sending a completion statement;

• Completing the purchase; and

• Registering the transfer deed with the Land Registry.

Purchase of a Leasehold residential property

Legal Fee

Where Steinfeld Law is instructed in relation to the purchase of a residential leasehold property, our fees would typically range from £3,000-£15,000. This range is based on hourly rates between £125 and £425. The applicable hourly rate will depend on the overall complexity of the matter as this shall impact on the required experience of those individuals dealing with the transaction.

This above range does not include VAT which is currently at 20%, nor does it include any disbursements (see below). Additionally, the above range assumes that this is a standard transaction and that no unforeseen matters arrive. Details of any unforeseen matters will be provided to you in the firm’s engagement letter prior to the work being undertook, along with a more bespoke fee estimate having regard to the precise nature and scope of the proposed transaction. In the event the lease needs to be extended, this will also impact on our fee estimate.

What is included in the fee?

Our fees cover all of the work required to complete the purchase of your new property, including dealing with registration at the Land Registry and the handling of payment of Stamp Duty Land Tax (SDLT).

The work is likely to consist of the following:

• taking instructions from you and liaising with you generally throughout the matter;

• a thorough investigation into the seller’s title to the property;

• negotiating the purchase agreement and form of lease;

• obtaining and considering local authority and other relevant searches, and producing a full report on title;

• raising and considering replies to all pre-contract enquiries;

• preparing and submitting an SDLT return to HM Revenue & Customs; and

• sending a notice of assignment to the landlord or its managing agents.

Disbursements

Disbursements are costs related to your matter that are payable to third parties and they do not form part of our fee. We handle the payment of the disbursements on your behalf to ensure a smooth process, but we may require the receipt of some funds in the interim to cover such expenses.

Whilst disbursements do vary from matter to matter, in a typical residential conveyancing matter we would expect to see some, if not all, of the following disbursements:

• search fees

• HM Land Registry fees

• Electronic money / banking transfer fees

• Notice of transfer fee – this fee is chargeable only if it is set out in the lease, and is often between £50 and £100.

• Notice of charge fee (in the event the property is to be mortgaged) – this fee is set out in the lease, and is often between £50 and £100.

• Deed of covenant fee – this fee is provided by the management company for the property (where relevant) and can often be difficult to estimate, ranging between £75 and £200.

• Certificate of compliance fee – to be confirmed upon receipt of the lease, as above, and can range between £50 and £100.

An additional cost to be aware of when purchasing a leasehold property is that ground rent and service charge are likely to apply throughout your ownership of the property. We will make inquiries of what these are to be, and will confirm them with you as soon as we are able to ascertain such information.

Stamp Duty Land Tax (SDLT)

The amount of SDLT payable will depend on the purchase price of the property and your personal circumstances, for example whether or not you are a first-time buyer. You can calculate the amount you will need to pay using the HMRC SDLT Calculator, which can be found here. We will require receipt of funds for SDLT before we can complete your purchase.

How long will my purchase take?

There are a number of factors that will impact the time it will take between your offer being accepted and the matter completing. On average, the purchase of a freehold residential property takes between 6-16 weeks.

A range of external factors can, however, cause such timescales to be altered, particularly if your transaction forms part of a chain. In these circumstances, where the transaction looks as though it may become more prolonged, we will contact you to revisit our original fee estimate.

What are the stages involved?

The precise stages involved in the purchase of a leasehold residential property vary according to the circumstances, but we have set out below what we consider to be the key stages common to most transactions:

• Reviewing and agreeing a draft contract with the seller’s solicitors;

• Reviewing replies to pre-contract enquiries, raising and reviewing replies to any additional enquiries;

• Reviewing local authority and other relevant searches, and compiling our findings into a full report on title;

• Exchanging contracts;

• Preparing and agreeing the transfer with the Seller’s solicitors;

• Raising and reviewing replies to requisition on title;

• Preparing an SDLT return;

• Preparing and sending a completion statement;

• Completing the purchase;

• Registering the transfer deed with the Land Registry; and

• Registering the notice of transfer with the landlord or its managing agents.

Sale of a Freehold residential property

Legal Fee

Where Steinfeld Law is instructed in relation to the sale of a Freehold residential property, our fees would typically range from £2,000-£10,000. This range is based on hourly rates between £125 and £425. The applicable hourly rate will depend on the overall complexity of the matter as this shall impact on the required experience of those individuals dealing with the transaction.

This above range does not include VAT which is currently at 20%, nor does it include any disbursements (see below). Additionally, the above range assumes that this is a standard transaction and that no unforeseen matters arrive. Details of any unforeseen matters will be provided to you in the firm’s engagement letter prior to the work being undertook, along with a more bespoke fee estimate having regard to the precise nature and scope of the proposed transaction.

What is included in the fee?

Our fees cover all of the work required to complete the sale of your property, including dealing with the redemption/discharge of any existing mortgage(s).

The work is likely to consist of the following:

• taking instructions from you and liaising with you generally throughout the matter;

• preparing and agreeing the sale contract with the buyer’s solicitors;

• deducing title for the property to the buyer’s solicitors;

• dealing with the buyer’s pre-contract enquiries;

• exchanging contracts an approving the transfer deed; and

• completing the sale, including discharging any mortgages and account to you for the net proceeds of sale.

Disbursements

Disbursements are costs related to your matter that are payable to third parties and they do not form part of our fee. We handle the payment of the disbursements on your behalf to ensure a smooth process, but we may require the receipt of some funds in the interim to cover such expenses.

Typically, however, there will not be any disbursements incurred in relation to the sale of a freehold property.

How long will my sale take?

There are a number of factors that will impact the time it will take between you accepting an offer and the transaction completing. On average, the sale of a freehold residential property takes between 6-16 weeks.

A range of external factors can, however, cause such timescales to be altered, particularly if your transaction forms part of a chain and you are purchasing a property at the same time. In these circumstances, where the transaction looks as though it may become more prolonged, we will contact you to revisit our original fee estimate.

What are the stages involved?

The precise stages involved in the sale of a freehold residential property vary according to the circumstances, but we have set out below what we consider to be the key stages common to most transactions:

• Obtaining redemption figures from your lender if needed;

• Responding to enquiries of the purchaser’s solicitor;

• Sending the final contract for your signature;

• Agreeing a completion date from when you will cease to own the property;

• Exchanging contracts;

• Arranging for all monies to be received and redeeming any loans secured on the property (i.e. a mortgage); and

• Completing the sale, discharging any mortgages and account to you for any net proceeds of sale.

Sale of a Leasehold residential property

Legal Fee

Where Steinfeld Law is instructed in relation to the sale of a Leasehold residential property, our fees would typically range from £3,000-£14,000. This range is based on hourly rates between £125 and £425. The applicable hourly rate will depend on the overall complexity of the matter as this shall impact on the required experience of those individuals dealing with the transaction.

This above range does not include VAT which is currently at 20%, nor does it include any disbursements (see below). Additionally, the above range assumes that this is a standard transaction and that no unforeseen matters arrive. Details of any unforeseen matters will be provided to you in the firm’s engagement letter prior to the work being undertook, along with a more bespoke fee estimate having regard to the precise nature and scope of the proposed transaction. Additionally, the above assumes that where any lease extension is to be granted, this process is to be carried out by the purchaser’s solicitors.

What is included in the fee?

Our fees cover all of the work required to complete the sale of your property, including dealing with the redemption/discharge of any existing mortgage(s).

The work is likely to consist of the following:

• taking instructions from you and liaising with you generally throughout the matter;

• preparing and agreeing the sale contract with the buyer’s solicitors;

• deducing title for the property to the buyer’s solicitors;

• dealing with the buyer’s pre-contract enquiries;

• if applicable, liaising with the solicitors acting for your landlord in connection with consent to the assignment of the lease of the property;

• exchanging contracts an approving the transfer deed; and

• completing the sale, including discharging any mortgages and account to you for the net proceeds of sale.

Disbursements

Disbursements are costs related to your matter that are payable to third parties and they do not form part of our fee. We handle the payment of the disbursements on your behalf to ensure a smooth process, but we may require the receipt of some funds in the interim to cover such expenses.

Disbursements typically vary from matter to matter, but we would expect to see some or all of the following disbursements when selling a leasehold property: 8

• fees for management information payable to the landlord or its managing agents;

• if applicable, fees payable to the landlord’s solicitors for a license to assign.

How long will my sale take?

There are a number of factors that will impact the time it will take between you accepting an offer and the transaction completing. On average, the sale of a freehold residential property takes between 6-16 weeks.

A range of external factors can, however, cause such timescales to be altered, particularly if your transaction forms part of a chain and you are purchasing a property at the same time. In these circumstances, where the transaction looks as though it may become more prolonged, we will contact you to revisit our original fee estimate.

What are the stages involved?

The precise stages involved in the sale of a leasehold residential property vary according to the circumstances, but we have set out below what we consider to be the key stages common to most transactions:

• Obtaining redemption figures from your lender if needed;

• Responding to enquiries of the purchaser’s solicitor;

• Dealing with the buyer’s pre-contract and management enquiries;

• If applicable, liaising with the solicitors acting for your landlord in connection with the consent to the assignment of the lease of the property;

• Sending the final contract for your signature;

• Agreeing a completion date from when you will cease to own the property;

• Exchanging contracts and approving the transfer deed;

• Arranging for all monies to be received and redeeming any loans secured on the property (i.e. a mortgage); and

• Completing the sale, discharging any mortgages and accounting to you for any net proceeds of sale.

The above should provide you with an indicative sense of Steinfeld Law’s pricing for residential conveyancing, but should you wish to discuss these matters further, please do not hesitate but to contact Vikki Davis on +44 (0) 207 725 1316 or via email Vikki.davis@steinfeldlaw.co.uk.