Quick answer
A home purchase plan lets you buy without an interest-bearing mortgage: your finance provider buys the home with you. You sign your provider's documents as well as the usual purchase papers. We handle both, and you get a written, itemised quote before you start.
On this page
How a home purchase plan works
There are two common types of plan. Which one you have changes the documents you sign.
- Diminishing Musharakah (co-ownership). You and the provider own the home together. Each monthly payment is rent on the provider's part plus a payment towards buying that part from them. Once it is all paid, you own the home outright.
- Ijara (lease to own). The provider owns the home and leases it to you. You pay rent and a set amount towards the price each month, and the home is transferred to you at the end of the term.
Home purchase plans for a home you live in are regulated by the Financial Conduct Authority, like mortgages.
What we do for you
- Check the contract and title from the seller's solicitor, order the searches and ask about anything unclear
- Go through your provider's documents with you and explain what they ask of you
- Tell you what the plan says about ending it early, insurance and repairs
- For a flat, check that the lease and the plan fit together
- Act for your provider as well, if we're on its panel
- On completion, send the money, file the Stamp Duty return and register you and the plan at HM Land Registry
What it costs
| Our legal fee | £1,010 – £1,910 + VAT for a standard purchase of a freehold home under £2m. Your instant quote gives the exact figure. |
|---|---|
| Dealing with Musharakah Documentation | £500 + VAT, if your finance is a Musharakah plan. Listed in your instant quote but not included in its total. |
| VAT | 20% on our fees and on some third-party costs (shown in your quote) |
| Third-party costs (disbursements), e.g. searches and ID checks | Extra: typically £319 to £341 on a purchase (one or two people, including VAT where it applies), listed one by one in your quote. |
Leasehold, new build and other extra work is charged as a separate fixed fee, set out in your quote.
You get a written, itemised quote before you instruct us. Our published fee ranges, and what they cover, are on our fees page.
Set by the government, shown separately: Stamp Duty Land Tax (paid to HMRC) and the HM Land Registry fee depend on the price and your circumstances, so they aren't part of our fee. In Wales, Land Transaction Tax applies instead.
Stamp Duty
Your provider is part of the purchase, but HMRC's alternative finance rules are designed so you pay Stamp Duty once, as on an ordinary purchase, where the plan meets their conditions. We check this and file the Stamp Duty return for you. HMRC has a Stamp Duty calculator if you want a figure now.
Step by step
Timings depend on the seller, the chain, your finance provider and the searches. We give you an estimate at the start and tell you if anything changes it.
- Getting started
You accept your quote, tell us who your provider is and send us your ID. We ask the seller's solicitor for the contract pack.
- Checks and searches
We review the contract and title, order searches and raise questions. Your provider's offer arrives.
- Report and sign
We report on the property and go through your provider's documents with you. You sign and transfer your deposit.
- Exchange
We exchange contracts with the seller's solicitor and the completion date is fixed. From this point, both sides are legally bound.
- Completion day
The money is sent to the seller's solicitor and the keys are released. Afterwards we file the Stamp Duty (or Land Transaction Tax) return and register you and the plan at HM Land Registry.
What clients say
-
Regulated by the SRA SRA No. 605949, view our record
-
CQS accredited Law Society Conveyancing Quality Scheme
Questions people ask
What is a home purchase plan?
It's a way to buy a home without paying interest. Your provider owns the home, or part of it, alongside you, and your monthly payments go towards owning it outright. The section above explains the two common types.
What do you need from me to get started?
Accept your quote, send us your ID and tell us who your finance provider is. When your provider issues its offer, send us a copy as well.
How long will my purchase take?
It depends on the seller, any chain, the searches and how quickly your provider issues its offer. We give you an estimate when we start and tell you if anything changes it.
What happens if my provider's offer is late?
We carry on with the checks and searches so they are ready. Contracts can't be exchanged until the offer is in place, so we keep you and the seller's solicitor told if it is holding things up.
Can you act for my provider as well as for me?
Yes, if we are on your provider's panel. Tell us who your provider is when you ask for a quote and we will confirm.
Who owns the home while I'm still paying?
Usually the provider, or you and the provider together, until the plan ends. Then the home is put in your name alone. We show you how your plan works before you sign.
Can I sell before the plan ends?
Yes. When you sell, the provider is paid what it is still owed from the sale price. Your provider sets any early-exit cost.
Helpful guides
Buying with a home purchase plan? See what it will cost.
Get my quote