"What matters to you, matters to us"

Sale of a Leasehold Residential Property

At Freeman Box we recognise that every client has individual needs and each transaction will be different. Our fees will be tailored to the transaction at hand and discussed with you during our initial consultation. During the course of the transaction, should anything arise resulting in an increase in our fees, you will be informed immediately.

In this article, we set out a guide to the costs and expenses you can expect to incur in a typical residential leasehold sale transaction. Please contact us to discuss your personal requirements and to receive an accurate estimate

Fees

Our fees* cover all of the work required to complete the sale of your property, including drafting contractual documents and redeeming any outstanding mortgage/charge.

Disbursements

Disbursements are costs related to your matter that are payable to third parties. We handle the payment of the disbursements on your behalf to ensure a smoother process.

Anticipated Disbursements

Possible additional disbursements on a leasehold sale include:

• Managing agents’ fee for provision of management/service charge information, typically in the region of £250 to £400 plus VAT.

• Landlord’s solicitors’ fee for Licence to Assign (when necessary), typically in the region of £700 to £1,250 plus VAT.

These fees vary from property to property and can on occasion be significantly different to the ranges given above. Once we are in receipt of your documentation, we can advise accurately on these.

How long will my sale take?

Normally, the time between sale papers being submitted and exchange is four weeks, as is the time between exchange and completion. However, these times can be varied to suit the requirements of the parties to the transaction. These times may also vary if complications arise, such as (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, or if the landlord’s consent is required.

If you are selling a leasehold property that requires an extension of the lease, this can take significantly longer, between 4 and 6 months. In such, a situation additional charges would apply.

We will keep you informed of any complications arising which could delay the sale process and of any resulting increase in costs.

Stages of the process

The precise stages involved in the sale of a residential property vary according to the circumstances. However, below we have set out some key stages as a guide:

• Take your instructions and give you initial advice

• Ask you to complete standard Law Society transaction questionnaire forms and provide relevant documents.

• Contact the landlord or managing agents for service charge/management information

• Draft contract documents and submit them to the buyer’s solicitors

• Reply to any further enquiries raised by the buyer’s solicitor

• Send final contract to you for signature

• Agree completion date (date from which the buyers own the property)

• Exchange contracts, receive deposit from the buyer and notify you that this has happened

• Request a redemption statement for any mortgage/charge on the property

• Complete sale and authorise the release of keys to the buyer

• Redeem any outstanding mortgage/charge on the property

• Transmit any balance of monies to you

* The fees mentioned in this article are for guidance purposes only and assume that:

1. this is a standard 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, or if the landlord’s consent is required;

2. this is the assignment of an existing lease and is not the grant of a new lease;

3. the transaction is concluded in a timely manner and no unforeseen complications arise;

4. all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation;

5. no indemnity policies are required. Additional disbursements may apply if indemnity policies are required.