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  • FIRST POST
    • lucie_sky81
    • By lucie_sky81 18th May 17, 9:23 AM
    • 1Posts
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    lucie_sky81
    First time buyer confused by solicitor final fees more than expected
    • #1
    • 18th May 17, 9:23 AM
    First time buyer confused by solicitor final fees more than expected 18th May 17 at 9:23 AM
    Hello, I really appreciate anyone who can help.

    I have never purchased a property before so please be patient with me.

    I will point out first it is a flat I have purchased so it is leased which I know makes things more long winded.

    So my final statement from the solicitors is £600 more than originally quoted.
    Extras are as follows, these are "de-embursments"

    Notice of assignment fee payable to the management agents £125
    Notice fee to the freehold £125
    Retention held for notice fees £200
    searches - Local environmental and drainage £187.40

    Do this look right, I am a little upset they didn't pre-warn me about this knowing I am a first time buyer.

    Thanks Lucie xx
Page 1
    • pinkpiglit
    • By pinkpiglit 18th May 17, 1:17 PM
    • 225 Posts
    • 78 Thanks
    pinkpiglit
    • #2
    • 18th May 17, 1:17 PM
    • #2
    • 18th May 17, 1:17 PM
    Hello, I really appreciate anyone who can help.

    I have never purchased a property before so please be patient with me.

    I will point out first it is a flat I have purchased so it is leased which I know makes things more long winded.

    So my final statement from the solicitors is £600 more than originally quoted.
    Extras are as follows, these are "de-embursments"

    Notice of assignment fee payable to the management agents £125
    Notice fee to the freehold £125
    Retention held for notice fees £200
    searches - Local environmental and drainage £187.40

    Do this look right, I am a little upset they didn't pre-warn me about this knowing I am a first time buyer.

    Thanks Lucie xx
    Originally posted by lucie_sky81

    Solicitor wouldn't have known about the £125 payment to the managing agents, nor the £125 notice fee to the freehold. That is specific to the property that you have bought.

    I would therefore assume the retention is related to the above (but I'm not sure).

    The search fee is the only one that I think could have been predicted.
    • cattie
    • By cattie 18th May 17, 2:50 PM
    • 7,734 Posts
    • 5,261 Thanks
    cattie
    • #3
    • 18th May 17, 2:50 PM
    • #3
    • 18th May 17, 2:50 PM
    It' common to have to pay a fee to the managing agents along with the freehold fee & as previous op mentions, solicitor wouldn't have known what the actual cost of these were at the outset. Not sure what the notice fee is for as I've never come across that.

    Often when buying a leasehold property & getting quotes from solicitors, they will state how much their legal fee is and stamp duty, but only mention + disbursements because they have no real idea of what the final cost of these will be. Also many people fail to take vat needing to be added into account, which makes the final outlay much higher than expected.
    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
    • tykesi
    • By tykesi 18th May 17, 3:06 PM
    • 1,735 Posts
    • 2,399 Thanks
    tykesi
    • #4
    • 18th May 17, 3:06 PM
    • #4
    • 18th May 17, 3:06 PM
    Do this look right, I am a little upset they didn't pre-warn me about this knowing I am a first time buyer.
    Originally posted by lucie_sky81
    I appreciate it's frustrating but what would you have done even if you had known about them, pull out? That would have been daft as it would have cost you more in the long run.

    As above, the solicitors probably didn't know about the notice fees until they started the process, they should probably have informed you they were payable (out of courtesy) but there's probably some small print authorising them to go ahead in the contract you have with them.
    £2017 in 2017 - £3238.42
    • aneary
    • By aneary 18th May 17, 3:18 PM
    • 486 Posts
    • 345 Thanks
    aneary
    • #5
    • 18th May 17, 3:18 PM
    • #5
    • 18th May 17, 3:18 PM
    Other than the specific search (mine just mentions searches) all the above costs are including in my estimate, however and this is really really important. The EA also manages the building (4 flats) and recommended the solicitor assuming the solicitor has had dealings with other properties in the building they would have an idea of all costs.

    My total estimated bill comes to £1600 (£2000 with stamp duty), I was shocked but after a quick review with my mum (a solicitor but isn't insured to deal with property sales with mortgages) said there wasn't anything unreasonable in there.

    Other quotes were lower but didn't included everything my solicitor included and were also mainly online so I opted for the local one.
    • G_M
    • By G_M 18th May 17, 3:35 PM
    • 41,084 Posts
    • 47,220 Thanks
    G_M
    • #6
    • 18th May 17, 3:35 PM
    • #6
    • 18th May 17, 3:35 PM
    Disbursements are things which the solicitor pays for themselves on your behalf. They are not charges made by the solicitor, they are made by others.

    The search fee is charged by the loacal authority, and similarly the Notices are fees charged by the freehlder & agent. Your solicitor cannot know what any specific freeholder (for example) will charge until they contact them.

    Most solicitors' initial estimates/quotes will show their own fees (ie the solicitor's) "plus disbursements". This is fine for comparing prices, as the disbursements will be the same whichever solicitor you use.

    Some quotes may list the disbursements (eg 'Notices') they anticipate, but inevitably without the precise amount, which they cannot know.

    The Retention is strange. Since they are now charging the specific amounts for the Notices, I fail to see why they also need to charge a retention.

    Are you sure the retention is not an amount you have already paid (in anticipation of Notice fees), and which is now being credited against the actual amounts?
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