Buying Your Freehold

Buying Your Freehold

LEGAL COSTS

The fees below are “per lessee” fixed fees and include the setting up of a company, drafting a participation agreement, drafting and serving an Initial Notice, making an application to the Leasehold Valuation Tribunal (but not the hearing itself), completing the transaction and registering it at the Land Registry

In addition the following disbursements (items we pay out on your behalf payable no matter which firm you instruct which are shared between the participators) are payable:

*if the premium you pay the Landlord is above £80,000 then the Land Registry fees will increase by the following:

£80,001 – £100,000  £80
£100,001 – £200,000  £190
£200,001 – £500,000  £270
£500,001 – £1,000,000 £540
£1,000,001 and over £910

Stamp Duty Land Tax (SDLT)

If a flat’s contribution is above £125,000 then you will have to pay SDLT to HMRC. This is payable at the following rates:

Up to £125,000 Zero
The next £125,000 (£125,001 – £250,000) 2%
The next £675,000 (£250,001 – £925,000) 5%
The next £575,000 (£925,001 to £1.5 million) 10%
The remaining amount (portion above £1.5 million) 12%

An SDLT return is required for a contribution over £40,000 although no tax is payable up to £125,000.

If you own more than one property your flat’s contribution may be subject to the higher rate of SDLT. This is payable at the following rates:

Up to £125,000 3%
The next £125,000 (£125,001 – £250,000) 5%
The next £675,000 (£250,001 – £925,000) 8%
The next £575,000 (£925,001 to £1.5 million) 13%
The remaining amount (portion above £1.5 million) 15%

 

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"Through their Lease Clinic, Comptons have simplified the lease renewal process. Their expertise in this field is reassuring to all those involved and most definitely minimises the anxiety and delays caused by having to extend these shortening leases"
KFH