Sellers solicitor charging fee

pjmtq

We are due to exchange next week and visited our solicitor this morning to sign all the paperwork. One issue which arose was that the sellers solicitor is charging us a fee of £50 + VAT (£57.50). Initially not too concerned as this is a small cost in the scheme of things.

However we are buying at £174,950 to avoid stamp duty, this charge has been added to the purchase price taking it to £175,007.50, so we would exceed the stamp duty threshold.

Our solicitor is going to push back on the sellers solicitor, but as the seller is a relocation company who have so far refused to negotiate anything I'm concerned they won't budge on this fee. If we pay will the fee be included for the stamp duty calculation? If so we are going to have to consider pulling out as we are not preapred to pay another £1,750 for the property.

Pee

What is their charge for? Surely it doesn't have to be added as part of the purchase price for Stamp Duty? If it does, then I suggest you settle on £50 inc VAT/ a contribution of £50. There is no way they will not negotiate on that, because they can see your position and the loss you stand to make.

JayZed

a) I don't understand why the seller's solicitor would be charging you a fee. You have not engaged them and are not their client. Have they indicated what it's for?

b) Solicitors' fees are completely separate from the purchase price, so this should not be added to the purchase price and should not affect stamp duty.

All sounds rather bizarre. Your solicitor is right to push back.

4Chickens

OMG,

We have bought at bang on £175,000. What if this happens to us? Surely the solicitor cannot increase the purchase price, only the vendor can, or am I missing something?

pawpurrs

What is this charge for is it Indemenity insurance or something?

barrooo

Agree with JayZed, these are (somewhat strange) fees and are not included in the purchase price, which is whatevers on the contract, so stamp duty should not be affected

Richard_Webster

Builder's solicitors often charge £50-£100 plus VAT for plans and documents and this looks like the same kind of thing. Nobody I have ever spoken to has suggested that it should be included in the SDLT calculations so I can't see why it would be any different here.

noxon

"We have bought at bang on £175,000"

But doesn't that mean you will have to pay stamp duty? I thought you had to pay less than £175k to avoid it.e.g. anything up to £174,999.99 is 0%, £175,000-£249,99.99 is 1%, £250,000 + is 3%. I could be wrong though, I often am.

latecomer

£175,000 is ok, £175,000.01 would be liable.

m_13

For the repossession purchase we bought we had to pay for all the searches and also reimburse for the proportion of the ground rent, service charge and sinking fund their client had paid for 2009. However, none of this went on the SDLT form as it wasn't in consideration for the property. Some auctions have special conditions where you pay towards the sale costs. REDC charge 10% plus VAT 'buyers fee' but none of this has anything to do with the price of the property.

I think somebody has got their wires crossed!

noxon

latecomer wrote: »

£175,000 is ok, £175,000.01 would be liable.

Ah OK, I'd obviously picked up the wrong end of the stick.