Our Fees - Fletcher & Co Fletcher & Co

RESIDENTIAL CONVEYANCING

This page is intended to provide guidance on our firm’s charges for clients buying and/or selling or re-mortgaging their homes in England or Wales and for Probate. It aims to provide clients with a clear idea of costs and timescales in relation to their transaction.

For information about the personnel who will handle your matter, please refer to our Meet The Team section of our website

STAGES OF THE PROCESS.

The precise stages involved in the purchase of a residential property vary according to the circumstances. However, the key stages will be:

Taking your instructions and providing you with initial advice.
Establishing your identity in line with Anti Money Laundering regulations.
Checking finances are in place to fund the purchase and contact lender’s solicitors if necessary.
Receiving and advising on Contract documents.
Carrying out searches.
Obtaining further planning documentation if required.
Making any necessary enquiries of the seller’s solicitors.
Giving you advice on all documents and information received.
Going through conditions of mortgage offer with you.
Sending final Contract to you for signature.
Agreeing completion date (date from which you own the property).
Exchanging contracts and notifying you that this has happened.
Arranging for all monies needed to be received from lender and you.
Completing the purchase.
Dealing with payment of any Stamp Duty Land Tax.
Dealing with the application for registration at the Land Registry.
Providing you with completed documents for your records.

TIMESCALES

The time between your offer to buy a property and you moving in or how long it will take from you accepting an offer until the buyer can move in to your property, may depend on a number of factors including the number of other parties in the “chain”, your bank and any title issues. The average time for a sale/purchase is 6-8 weeks. However, if you are buying a leasehold property that requires an extension of the Lease, this can take significantly longer, between 4 and 6 months .

FEES FOR A RESIDENTIAL PURCHASE.

We have a minimum charge of £795 plus VAT for a residential house and £1250 plus VAT for a leasehold flat.. However, the exact figure will depend on the value of the property, the complexity of the transaction and if any unforeseen complications arise. Potential complications that could have an impact on our fees may include:

The land is unregistered.
Abortive transactions ( the buyer or seller pull out go the transaction
Where you need funding, structuring and taxation advice;
Where there are planning and/or construction issues;
Where there are non-resident landlords;
Where unforeseen matters arise e.g. a defect in title which requires remedying prior to completion or the preparation of additional documents ancillary to the main transaction;
Where the transaction involves the grant of a new lease rather than the assignment of an existing lease;
Where parties are uncooperative or there is unreasonable delay from third parties in providing documentation;
Liaising with lenders and their lawyers where separately represented.
Specialist finance is involved
There is offshore or trust ownership

In the event that any such complication arises, we would always discuss this with you before taking any action that might incur extra cost for you.

Our fees cover all of the work required to complete the purchase of your new home, including dealing with registration at the Land Registry and dealing with the payment of Stamp Duty Land Tax (SDLT) if the property is in England, or Land Transaction Tax (LTT) if the property is in Wales. VAT at the prevailing rate which is presently 20%, will be added to fees.

OTHER EXPENSES THAT YOU WILL INCUR

There are other costs relating to your purchase for which you are responsible.These include:

HM Land Registry information fees: @ £6 per registered title (often only one), and @ £3 per copy document required; a copy lease @ £9 and registration fees dependent on the value of the property.
Electronic Money Transfer Fees: we charge an electronic money transfer fee of £30 plus VAT per transfer.
Search fees: We recommend certain searches when purchasing a new property and if you are borrowing money your bank will also require these. The exact searches will depend on the location of your property both due to the different charges levied by different local authorities and particular location related risks e.g. coal mining in some areas of the country. London searches tend to be more expensive than those in other parts of the country. You can expect to pay in the region of £300 – £500 for these (some of which will be subject to VAT).
SDLT/LTT: The amount payable depends on the purchase price of your property. You can calculate the amount you will need to pay by using HMRC’s website herehttps://www.gov.uk/guidance/hmrc-tools-and-calculators#stamp-duty-land-tax-sdlt or if the property is located in Wales by using the Welsh Revenue Authority’s website https://lttcalculator.wra.gov.wales/.
Additional leasehold disbursements (i.e. where you are taking a lease not a freehold interest – this is common with apartments). These fees vary from property to property and can on occasion be significantly more than the ranges given below. We can usually give you an accurate figure once we have sight of your specific documents but sometimes this cannot be confirmed until part way through the transaction. The fees include:
Notice of Transfer and Notice of Charge fees – these fees if chargeable are set out in the lease. Often each fee will be between £75-£150 plus VAT
Deed of Covenant fee – this fee is provided by the management company for the property and can be difficult to estimate. Often it is £150-£450 plus VAT
Certificate of Compliance fee to be confirmed upon receipt of the lease. Often it is £50-£250 plus VAT

Where applicable, VAT at the prevailing rate which is presently 20%, will be added to additional expenses.

If you are purchasing a leasehold interest you should also be aware that ground rent and service charge are likely to apply throughout your ownership of the property. We will confirm the ground rent and the anticipated service charge as soon as we are able.

FEES FOR A RESIDENTIAL SALE

We have a minimum charge of £795 plus VAT. However, the exact figure will depend on the value of the property, the complexity of the transaction and if any unforeseen complications arise, as listed above.

Our fees cover all of the work required to complete the sale of your property, including dealing with the Land Registry to obtain up to date title information and in the case of leasehold property liaising with other interested parties including the landlord and management company. VAT at the prevailing rate which is presently 20%, will be added to fees.

OTHER EXPENSES THAT YOU WILL INCUR

There are other costs relating to your sale for which you are responsible. These include:

HM Land Registry: You will also need to budget for Land Registry information fees @ £6 per registered title (often only one) and for leaseholds a copy lease @ £9.
Third Party Fees: On a leasehold sale there may be Licence to Assign fees and/or deed of covenant fees.These fees vary considerably according to the documents, parties and property but you should budget for £550-£1,000 plus VAT.
Electronic Money Transfer Fees: We charge an electronic money transfer fee of £30 plus VAT per transfer.

Where applicable, VAT at the prevailing rate which is presently 20%, will be added to additional expenses.

FEES FOR A RESIDENTIAL MORTGATE/RE-MORTGAGE

We have a minimum charge of £395 plus VAT. However, the exact figure will depend on the value of the property, the complexity of the transaction and if any unforeseen complications arise, as listed above.

VAT at the prevailing rate which is presently 20%, will be added to fees.

OTHER EXPENSES THAT YOU WILL INCUR

There are other costs relating to your mortgage/re-mortgage for which you are responsible. These include:

Bank and administration fees: A bank transfer fee and our administration costs for setting up the bank transfer (per bank transfer) of £30 plus VAT.
Management Pack (leasehold only): Where you are re-mortgaging a leasehold property, we will need to write to your landlord (often the freeholder), or their managing agents to obtain a management pack. This includes details of the rent, service charge, and building insurance. It also contains replies to some standard questions. Even if you have kept good records, this will be necessary. The cost depends on the charge of the landlord or their managing agents. This is typically between £200 and £500 and VAT may be due in addition.
Mortgage redemption: Where your property has an existing mortgage, this will be redeemed (paid off) by us on completion (there will be a bank transfer fee for doing so). You should ensure you know how much money you will need to pay to redeem, including any early repayment or other closing charges.
Landlord’s Notice Fee (leasehold property only) :For a leasehold property, it is likely we will need to give your landlord notice of the new mortgage and they usually charge a fee.That fee depends on the particular lease, but is often between £30 and £200.

Where applicable VAT at the prevailing rate which is presently 20%, will be added to additional expenses.

PROBATE

Every estate administration is individual so our bespoke service allows us to tailor our work to your personal requirements and we work on a fixed fee basis to reflect this.

We break our estate administration work into two parts:

Applying for the Grant of Probate or Letters of Administration; and
Administering and Finalising the Estate.

We can, for example, purely apply for the Grant of Probate or Letters of Administration using the information which you provide us with or alternatively we can obtain all the information ourselves in order to prepare the Probate Application and then finally proceed to finalise the estate if that is required.

STAGES OF THE PROCESS

The work involved in an estate administration typically consists of the following:

Asset and Liability fact find;
Preparation of an Inheritance Tax Account and associated forms;
Preparation of the Probate application;
Preparation of a Legal Statement;
Submission of forms to HM Revenue & Customs and HM Courts and Tribunals Service;
Closure or transfer of assets following obtaining of the Grant;
Payment of Liabilities;
Finalisation of the deceased’s tax affairs;
Distribution of the deceased’s estate to the Will beneficiaries or those entitled on intestate;
Production of a set of Final Estate Account.

Aspects commonly excluded from our service include:

Organising the funeral;
Dealing with a contested estate
Dealing with trusts created within the Will or by way of an intestacy
Disposing of household contents
Dealing with the pre-death tax affairs of the deceased

In assessing the fixed fee, we take into account the following:

Whether there is a Will and the terms and requirements of the Will;
The number, type and value of the assets involved;
The number, type and value of any liabilities of the deceased;
Whether there has been any lifetime gifts;
Whether a short form (IHT205) or long form (IHT400) Inheritance Tax Account is required and whether Inheritance Tax is payable; and
The number of beneficiaries or potential beneficiaries of the estate.

Examples of Stage One costs – obtaining the Grant of Probate or Letters of Administration

For uncontested estates where the deceased left a valid Will and you provide the information required to obtain the Grant of Probate, our fees are likely to be in the region of £1,000 to £1,800 plus VAT and disbursements for an IHT205. These fees increase to £1,800 to £2,500 plus VAT and disbursements for an IHT400.

For intestate estates where the deceased did not leave a Will and you provide the information required to obtain the Letters of Administration, our fees are likely to be in the region of £1,200 to £2,000 VAT and disbursements for a short form Inheritance Tax Account. These fees increase to £2,000 to £2,700 and disbursements for an IHT400.

In the above situation if we are to obtain the information ourselves direct from the asset holders and creditors, then typically an additional £1,000 to £2,000 plus VAT will be incurred depending upon the deceased’s assets including whether the deceased had a residence, and we are required to liaise with the utility providers also.

Examples of Stage Two costs – administration of the estate

For a simple estate with a handful of assets and beneficiaries, our fees are likely to be in the region of £1,500 plus VAT.

For larger estates, our likely fees will be in the region of £2,500 plus VAT.

VAT at the prevailing rate which is presently 20%, will be added to fees.

OTHER EXPENSES THAT YOU WILL INCUR

There are other costs relating an administration of an estate for which you are responsible.These include:

Probate Court fee payable to HM Courts & Tribunals Service £155.00
Sealed copies of the Grant (per copy) £1.50
HM Land Registry Bankruptcy Search per person (UK) £2.00

Other potential disbursements can include foreign bankruptcy searches for non-domiciled beneficiaries (c£100.00) and Statutory Notice fees (c£200.00) where the deceased’s liabilities may be in question.

VAT at the prevailing rate which is presently 20%, will be added to additional expenses.

The above estimates do not include the transfer or sale costs of any property involved within the estate. A separate quotation can be provided upon request.

The above fees also do not include costs which may be incurred where there may be complicating factors such as:

The need to expedite matters;
Multiple properties;
Foreign assets;
Missing or damaged Wills or documents;
Several income producing assets which require a formal return to HM Revenue & Customs;
Disputes arising between executors or beneficiaries; and
Investigations by HM Revenue & Customs.

In the event that any such complication arises, we would always discuss this with you before taking any action that might incur extra cost for you.

TIMESCALES

If you provide us with the full and correct information to obtain the Grant of Probate or Letters of Administration we would typically take 2 weeks to produce the documentation for you to sign to make the application to the Probate Registry. If an Inheritance Tax Account is required this would take an additional 2 weeks in order to prepare the documentation.

If we are to obtain the information directly from the various institutions, then it would typically take an additional 4-6 weeks as it does depend on the institutions and their response times.

Once the application has been submitted and subject to there being no queries raised by the Probate Registry, we would expect to receive the Grant of Probate/Letters of Administration within 8-12 weeks. We currently, however, cannot chase the Probate Registry until 16 weeks following receipt of the application.

Please note that if an Inheritance Tax Account is submitted, we are unable to make the application for the Grant of Probate until 20 working days has elapsed so that HM Revenue and Customs can liaise with HM Courts and Tribunals Service.

It is a general rule that estates should not be distributed within the first 6 months after death to allow all creditors to come forward. Most estates are typically wound up between 12–18 months.

We hope you find this information helpful but please do not hesitate to contact us if you have any questions or require clarification about the information provided.