Professional guidance for when you’re buying, selling or remortgaging your home or business
Property purchase is usually the greatest single financial commitment that a person will undertake. Given the importance of the transaction it is crucial to have the very best professional guidance when navigating the complexities of the legal system regulating the sale and purchase of property.
At Byrne Frodsham & Co the property specialists are Charles Asbury and Marion O’Donovan.
Whether you are buying, selling or remortgaging your home or business, we will give you the support you need in conveyancing matters. Particularly in today’s sensitive markets our team has the experience expertise and astute business acumen to ensure you gain the best terms available and to provide full protection.
How to minimise the stress of buying and selling property
Buying and selling property is high on the psychiatrists stress list and for many good reasons. It is said to be the third most stressful activity after bereavement and divorce. For this reason you should have well qualified and experienced representatives to guide you through the difficulties and we at Byrne Frodsham & Co can deal with that.
There are many issues that need careful examination. For example, is the title in order and does the seller have the legal right to sell the property? Are the boundaries in order or are there any disputes with adjoining owners? Will the property be subject to a Compulsory Purchase Order to make way for new roads, runways, or other developments? Are there any restrictive covenants that will prohibit use or development in the future? What fixtures and fittings and other items are to be included?
We will ensure that all the procedures are executed as efficiently and speedily as possible. We contact the Estate Agents, and the other parties Solicitors, to obtain, examine and evaluate the relevant documents, and we carry out all necessary searches to ensure that the property is not affected by anything detrimental. We keep you fully informed of important developments as matters proceed.
Full written estimates of all costs will be provided which show not only the cost of the sale and or purchase and any mortgage, but also payments that have to be made in the course of the transaction such as Vat, search fees, stamp duty and Land Registry fees.
There are other considerations when you are buying a different type of property. In Flat purchases we will check your access rights, who owns and maintains the building, gardens, garages, roof, common parts etc. We will ensure that you are as aware as possible of the extent of the service charges and insurance costs.
Our fees in relation to these matters are as follows:
Sale transactions: Legal fees from £595.00 plus VAT
Purchase transactions : Legal fees from £650.00 plus VAT
Legal fees on registration and reporting to HMRC with regard to stamp duty £95.00 plus VAT. Legal fees for dealing with the mortgage aspect from £50.00 plus VAT. Telegraphic transfer fee of £30.00 plus VAT
All legal fees are subject to VAT at the current rate of 20%. For example legal fees of £595.00 the amount of VAT payable is £119.00
With regard to disbursements and searches as below, these do not attract VAT.
With regard to the sale of a property other fees/disbursements would include the fee for obtaining a copy of the Register of Title and plan from the Land Registry at £6.00. If the property is leasehold a Leaseholders Pack may have to be supplied. In addition if the property also has a Management Company a Management Pack may have to be obtained and supplied to the buyers solicitors. These fees vary depending on which Landlord/Management Company is involved and can be anything from £250.00 plus VAT of £60.00 to £450.00 plus VAT of £90.00
In the case of a property purchase other fees/disbursements are payable with regard to searches and an example of search fees are as follows:
On most purchases the searches to be carried out will depend on the type and location of the property. The approximate cost would be £300.00. Typically the following searches would be carried out
Chancel Check Search
Water and Drainage Search
Environmental and Mining Search
Land Registry fees
Land Registration fees. The fee payable when registering your title on a purchase is dependent upon the price paid and whether the property is registered or unregistered title. For example the purchase of a registered property the price paid being between £80,000 and £100,000 the fee would be £40.00. If the same property was unregistered title the fee would be £80.00.
Stamp Duty Land Tax
Stamp Duty Land Tax may also be payable depending on the price paid and the circumstances of the individual. For example, if you are a first time buyer, never having owned a property before, reliefs are available and it may be that you may not need to pay stamp duty. Also if the value of the property is below £125,000 you would not pay stamp duty. If the price paid is above £125, 00 then stamp duty is payable according to HMRC’s scale. If your purchase is of a second property, for example a buy to let, then the higher rates of stamp duty would be payable. You can calculate the amount payable by using the calculator on HMRC’s website or if the property is located in Wales the Welsh Revenue Authority’s website.
Where the property being purchased has a leasehold title there may be fees to pay to the landlord/management company for Notice of Transfer/Mortgage, Deed of Covenant, Consent to Transfer or a Compliance Certificate. These charges can range from £50.00 to £350.00.
How long will the sale/purchase take?
Stages of the Process
Take instructions and give initial advice
Receive Memorandum of Sale and contact the buyer’s solicitors for confirmation of their instructions.
Obtain office copy of the register of title and plan for the property and prepare contract documentation and submitting same to the buyer’s solicitors.
Dealing with buyers solicitors enquiries
If applicable obtaining information from Management Company/Freeholder for forwarding the buyers solicitors/
Arranging for the contract and Transfer to be signed and agreeing a completion date
Where applicable obtaining redemption statement from bank/building society
Exchanging contracts and confirming same to the seller.
Completing the sale
Where applicable redeeming mortgage
The timescale involved with regard to a sale can depend on whether there are any complex issues to be resolved but can usually be completed on average within 6-12 weeks
Taking initial instructions and giving advice on the matter
Check if funds are in place and if a mortgage is required
Receiving contract documentation and advising on the same
Where applicable receiving mortgage instructions and going through the same with client
Carry out searches. Searches can take approximately 1-4 weeks to be received and reporting on the results
Raise any necessary enquiries with the sellers solicitors and advising on responses
Attending client(s) to sign the contract and Transfer deed and if applicable the Mortgage Deed and agreeing completion date
Exchange contracts and advising client
Where applicable notifying bank/building society of completion date and arranging for mortgage funds to be received in time for completion. Preparing completion statement and send to client advising the balance required to complete.
Completing the purchase
Deal with Stamp Duty report to HMRC and payment of stamp duty land tax where applicable.
Deal with application for registration at H M Land Registry and reporting to you when this has been completed.
The time scale involved with regard to a purchase again can depend on whether any complex issues need to be resolved but takes on average 6-12 weeks to completion