What Your Solicitor Does on a Sale
Common Issues That Can Delay Your Sale
Capital Gains Tax on Property Sales
Capital Gains Tax (CGT) is payable on the profit (gain) from selling a property that is not your main residence. Key points:
- Main residence exemption (Private Residence Relief) — no CGT on your main home, and the final 9 months of ownership are always CGT-free even if you have moved out
- CGT rates on residential property — 18% (basic rate taxpayer) or 28% (higher/additional rate taxpayer) on the gain, above the annual CGT allowance (£6,000 in 2023/24)
- 60-day reporting rule — CGT on residential property must be reported and paid to HMRC within 60 days of completion
- Your solicitor reminds you of the deadline — but you should take separate tax advice on the calculation of your gain
Frequently Asked Questions
When should I instruct a solicitor to sell?
As soon as you decide to sell — ideally before the property is listed with an estate agent. Instructing early allows your solicitor to investigate the title, identify any issues, and prepare the contract pack so that it can be sent to the buyer's solicitor the moment a buyer is found. Early instruction is the single most effective way to reduce the time between offer acceptance and exchange of contracts.
Do I need to disclose problems with the property?
Yes. The TA6 Property Information Form requires honest and accurate answers. A seller who gives inaccurate answers — for example, denying knowledge of neighbour disputes, planning breaches, or flooding — may face a misrepresentation claim from the buyer after completion. Misrepresentation can result in rescission of the contract or a claim for damages. Your solicitor advises on exactly what must be disclosed.
What happens to my mortgage on completion?
Your solicitor requests a redemption statement from your lender before completion. On completion day, the balance of the purchase price (paid by the buyer's solicitor) is used to redeem the mortgage — paying off the outstanding capital and accrued interest. The mortgage charge is then discharged at HM Land Registry. Any surplus (net equity) is transferred to you or, if you are buying simultaneously, used as the deposit on your purchase.
Can a buyer pull out after exchange?
After exchange, the buyer is legally bound to complete on the agreed date. If they withdraw, they forfeit their deposit (10% of the purchase price) and you may sue them for any further loss — for example, the difference between your contract price and the price you ultimately achieve on a re-sale. A solicitor advises on enforcing the contract and issuing a Notice to Complete (giving the defaulting party a further 10 working days to complete) before treating the contract as at an end.
What fees will I pay on a sale?
Seller's costs typically include: solicitor's conveyancing fee (usually £800–£1,500 + VAT for a straightforward freehold sale), estate agent's commission (usually 1–3% + VAT of the sale price), and mortgage redemption fee (if any early repayment charge from your lender). SDLT is not payable by the seller. If you are selling a leasehold property, there may be additional costs including a management information pack fee charged by the management company.