Davies Bays & Co trading as
John Bays & Co Solicitors
Incorporating Windsor & Co and Denis Mann Bays & Co
240A High Road, Wood Green, London N22 8HH
DX 35653 WOOD GREEN 1
TEL: 020 8881 3609
FAX: 020 8889 2855
EMAIL: email@example.com for enquiry purposes only.
We do not accept service by email.
Sale of a leasehold flat
Our fees cover all of the work required to complete the sale of your leasehold flat or apartment including dealing with repayment of any existing mortgage or charge secured against the registered title to the property at the Land Registry, settlement of any outstanding service charges and/or ground rent due to the Landlord or their Managing Agent and usually settlement of any estate agent’s sales commission by prior agreement.
Legal Fees: These will usually range between £995.00 -£1500.00 excluding VAT and will be dependent on the type and value of property being sold. Our professional charges are made on the basis of an experienced conveyancing solicitor carrying out the work required on your sale with an overall emphasis on providing a personal service. Our focus is on delivering quality rather than a volume driven conveyancing service.
Our fees assume that:
- this is a routine sale transaction and that no unforeseen matters arise including for example (but not limited to) a defect in title which requires remedying prior to completion or the preparation of additional documents ancillary to the main transaction
- it is the assignment (sale) of an existing lease and is not the grant of a new lease or any deed to vary the existing lease or to extend the term
- the transaction is concluded in a timely manner and no unforeseen complications 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.
- The price will also be determined by the following factors:-
- The value of the property
- Whether the sale relates to a property which was built in the last 10 years
- If the property being sold involves a shared ownership scheme
- Whether the property being sold is at auction in which case we would obtain the searches in advance
- Whether the property has been repossessed and being sold via a power of sale
- Whether it will be necessary to retain money in our client account pending receipt of final service charge accounts
- Whether there are outstanding major works invoices to be dealt with by way of retention.
NB: This list is not intended to be exhaustive.
VAT: VAT is payable on our fees at a current rate of 20%
HM Land Registry Fees: The following fees shall apply:-
- Official copies of both the freehold and leasehold registers of title and tile plans at £12.00
- plus a further charge of £3.00 for obtaining an Official copy of the registered lease and if applicable a further fee of £3.00 for any deed supplemental to the registered lease e.g. a deed of variation or a previous lease or any other document referred to in the title registered at the land registry.
Resale Management Pack: it is generally necessary to obtain a resale pack from the Landlord’s managing agents for which a fee of between £100.00 - £400.00 is paid to the managing agents.
Referral Fees: We do not pay or receive any referral fees for any agents or third parties.
Payment on account: we will request a payment on account at the outset of the transaction, currently £500.00.
Disbursements are costs related to your matter that are payable to third parties, such as Land Registry Fees. We handle payment of the disbursements on your behalf to ensure a smoother process.
EXAMPLE OF A SALE: For the sale of an existing leasehold flat with a sale price of £460,000.00 our fees and disbursements would be as follows:
|Land Registry official copy of the freehold register and plan fee:
|Land Registry official copy of the leasehold register and plan fee:
|Official copy registered lease (per document)
|Estimated fee payable to the Landlord’s managing agent for a re-sale pack-
|Telegraphic Transfer fee to discharge existing mortgage:
|Anti-Money Laundering/ID Check fee (per name):
The above does not include any agreed sales commission payable to an Estate Agent which is usually calculated as a percentage of the sale price plus any VAT.
Stages of the process
The precise stages involved in the sale of a residential property vary according to the circumstances. However, below we have suggested some key stages:
- Take your instructions and give you initial advice, complete client care documentation and due diligence.
- obtain from your estate agent an Energy Performance Certificate, which is required at the point of marketing of a property for sale with a minimum E rating at present;
- prepare and send draft Contract documentation to the Buyers’ Solicitors to include the following Property Information Forms:-
- 1. TA 6 – Property Information Form.
- 2. TA10 - Fittings and Contents Form.
- 3. TA 7- Leasehold Information Form.
- 4. Overriding Interests Questionnaire.
- We will also be required to provide the Buyer’s Solicitors with replies to the usual enquiries of the Landlord/Managing Agent (often called a “re-sale pack”) and fees for such a pack can range from £100 up to £400 depending on the Managing Agent. In some cases, further charges may also apply in relation for the preparation of any deed of covenant and in a small number of cases a Landlord’s Licence to Assign if required under the terms of the lease of the Property.
- Once everything is in order and the contract has been agreed with the Buyer’s solicitors, we will exchange contracts, at which point you would be legally bound to complete the sale of the Property on a completion date mutually agreed in the Contract. The completion date (the day on which you must give up possession of the property) depends on the requirements of the parties,. When we are ready to exchange contracts, the Buyer must pay a non-refundable deposit on the purchase price (usually 10%) until the completion date agreed in the contract, when the Buyer must pay the balance of the purchase price. The timing of exchange depends on when both you and the Buyer are in a position to do so. The balance of the purchase price is payable in full upon the completion date agreed in the Contract.
- We shall then prepare a completion statement confirming the purchase price being received from the Buyer, less this firm’s charges and expenses, any sum to be repaid to your mortgage lender and any estate agent’s commission; and dealing with any apportionment of ground rent and service charge.
- On the date of completion, this firm will receive the balance of the purchase price by telegraphic transfer from the Buyer’s solicitors, to whom we shall then send all the title deeds to the property and transfer signed by you to enable the Buyer’s solicitors to register the Buyer as the registered proprietor at the Land Registry.
- We shall then repay your mortgage (if any), pay the Estate Agent’s commission (if any) [unless you have confirmed to us in writing that no commission is payable to any Estate Agent] and having deducted this firm’s charges and expenses as set out on the completion statement, remit the sale proceeds to you either by cheque on by telegraphic transfer to your nominated bank account.
How long will my Property sale take?
How long it will take from your acceptance of the buyer’s offer until you can complete your Property sale 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, it can be longer if your sale requires either an extension or variation or rectification of the lease, that can take significantly longer, between 12 and 16 months or even longer. In such, a situation additional charges may also apply. It can be quicker if your Buyer is not relying on a mortgage and/or the transaction is chain free.
Sale not proceeding: If, for any reason, we are unable to complete the sale of your property, we will make a charge which will be a proportion of the fixed fee quoted relative to the time spent. Sales that fail to complete often involve as much work as those which reach completion. Any charge made will not exceed the amount of the fixed fee we have given.
Please note that we will always provide you with individual costs information and a copy of our terms and conditions of business.
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The partners in
Davies Bays & Co are John Bays, Riyad McDoom, Naomi Bays and Michael Christopher. We are authorised and
regulated by the Solicitors’ Regulation Authority No. 070397 www.sra.org.uk