Freehold Leasehold - What’s the difference?
If you are buying a Freehold property, you will own the property and the land it is built on. Most houses are sold on this basis. You are responsible for all costs attached to repairs and maintenance of the building and the land comprised within the freehold.
If you have a leasehold interest, you will not own the land or the building upon it outright. That interest will remain with a Landlord and you will have a lease of the property for a number of years. When acquiring a leasehold, it is beneficial to secure the highest unexpired term of years that is possible, but on occasion leases do require extending (please see below). When you buy a leasehold, you will pay a nominal ground rent to the Landlord. Additionally, contributions towards repair and maintenance of common parts, and the like, will arise (service charges).
If you already own a leasehold property and would like to extend the lease or buy the freehold as part of the transaction, SA Law’s lease extension team will be able to advise you.
Re-mortgage
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Fees for a Re-Mortgage excluding VAT
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Freehold
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Leasehold
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Up to £350,000
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£500.00
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£600.00
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£350,001 to £750,000
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£750.00
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£850.00
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Over £750,000
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Please contact us for a personalised quote
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Please contact us for a personalised quote
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If your circumstances require us to provide a more bespoke service, (for example, if the transaction has particularly complex aspects), one of our property experts can provide a tailored quote for the work. Simply call our St Albans office on 01727 798000, or our London office on 020 71835683
Please be aware that unforeseen circumstances may require us to undertake additional work, for which additional costs may arise. For example, unusual issues with the property you are buying or selling, or if other parties involved in the transaction are causing unnecessary delays. We always explain any additional costs in advance and will only proceed with your authorisation.
If moving home requires you to update a Will, we can also help with that too. Learn more about our Wills service.
Disbursements
Disbursements are additional fees and taxes that we pay to third parties on your behalf. Below are indications of what you should budget for, for this part of the transactions.
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Disbursement
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Selling (excluding VAT)
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Buying (excluding VAT)
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Re Mortgage (excluding VAT)
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All search fees required including bank transfer fee
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Up to £350
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See note *
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Land Registry documents and bank transfer fee
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£60
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£60
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* If you are re-mortgaging some lenders will accept an indemnity insurance policy which costs in the range of £50 and £75. This would avoid the expense of the searches indicated above.
Stamp Duty Land Tax
In addition to the above, you will also need to pay Stamp Duty Land Tax based on the value of your property. To understand how much you will need to pay, we recommend the HMRC Stamp Duty Calculator.
Additional Conveyancing Charges
From time to time as transactions progress, the need for additional work arises which may not have been originally anticipated from the outset. The following is a list of some areas that commonly arise together with details of the additional charges that will be encountered:
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Additional Service
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Minimum Additional Charge (excluding VAT)
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Advisory
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Indemnity Insurance Policies (either arranging or approving)
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£100.00
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Payment per policy
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Repayment of unsecured loans or debts
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£100.00
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Payable per loan
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Deeds of Covenant pursuant to Leases or Freehold transfers involving Management Companies
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£125.00
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Transfer of Share of Freehold Interest (with lease)
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£250.00
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Corresponding with previous solicitors
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£45.00
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Cost per letter in/out
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Undertaking for access between exchange of contracts and completion
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£100.00
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Statutory Declaration (simple)
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£100.00
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For any purpose
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Sale or Purchase of Part of Title
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£200.00
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Sale or Purchase of Unregistered Title
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£250.00
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Sale or Purchase of Freehold Title involving Management Company
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£200.00
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Help to Buy
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£300.00
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New Build Conveyancing
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£250.00
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If we have to re-issue contracts to alternative solicitors if the buyers change solicitors
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£50.00
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Cost to print bulky contract papers if received electronically (if necessary)
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£75.00
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Encashment of Help to Buy ISA or Lifetime ISA
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£50.00
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Per ISA
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Declaration of Trust (directing as to Beneficial Interests)
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£175-£250 (straightforward) £250+ (complicated)
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