LA +2, same as for half-fey.
The whole point of transition classes is that the starting template is considered to get you part of the way to the end template, so you can transition to the end template by making up the difference in LA and gaining the remaining abilities. So feytouched’s LA +1 has some of the features of the LA +2 half-fey, and the transition class allows you to take on the second LA and gain what feytouched is missing. Afterward, you are a half-fey creature and not really a feytouched creature any more, because those benefits are part of being a half-fey now.1
- This isn’t to say you actually lose the feytouched benefits or anything—just that feytouched + the transition class = half-fey. Or at least that’s the theory—there is actually a major discrepancy here. Where feytouched are immune to all mind-affecting effects, half-fey are only immune to effects of the Enchantment school—all of which are mind-affecting, but don’t encompass all mind-affecting effects. That makes the feytouched immunity much better than the half-fey one, so a half-fey who started as a feytouched is that much better off than a regular half-fey. This seems like an oversight, but it’s hard to say for sure.