Concerned about excessive local search fee

xeena

Background: We have 2 properties on one title deed. Both were holiday cottages, but we got planning permission a couple of years ago on both of them to convert them to standard residential properties. We now live in Property A and rent out Property B. We are now remortgaging from Abbey Commercial to First Direct on their BR+0.79% offset. To get the deal, we are having to cover our own legal costs, and transfer Property B out of the title at the same time as the remortgage goes through.

Question: Our solicitor asked us for £137.50 local search fee (Carmarthenshire), which we paid, but he emailed me Friday to say "Messrs Richards Gray who carry out the searches have informed me that as the property is regarded as commercial, there will be an additional sum of £208.03 to pay" :eek: Any ideas on this? I don't even know what a local search does, let alone what an extra £208 would buy... I'm reluctant to pay because I don't think the property should be regarded as commercial any more??

TIA

minimike2

If property B is rented on an AST or similar and not as a holiday let, then it is not semi-commercial. Are they aware thats its no longer a holiday let? Provide a copy of the AST for proof that its not a commercial property anymore.

xeena

Thanks mm2, but as this property is being removed from the title (and will be mortgage-free), does it even concern them? Or is it because it is still on the title deed as it currently stands? Nobody has asked what the status of that property is as it won't be on the mortgage.

minimike2

The property is still yours, so will be on a new title register, so yes it does concern them

xeena

Ok, many thanks I'll speak with my solicitor tomorrow and ensure he knows it's rented and non-commercial.

xeena

Ok, latest on this is that they are insisting that we pay the extra - "due to the size of the property (approx 1 acre), it's regarded as commercial".

I'm really pee'd off. I know an extra £208 isn't much in the grand scheme of things, but when it all adds up, this remortgage is going to cost us near on £2k and it hardly makes it worthwhile

Anyway, I digress - I'm going to pay the £208 as this has held us up for 3 weeks already, but surely £350 for a local search is excessive? I know for certain we didn't pay that when we bought. I'm thinking of writing a letter of complaint after the mortgage is completed and seeing if we can get a refund on the £200