Surprisingly high solicitor cost compared with the initial estimate,what should we do

helger

We are talking about the conveyance work for buying a property.

We were given an estimate of legal fees plus disbursement of less than 700 pounds initially by a solicitor. Therefore, we decided to use this solicitor based on the estimated cost.

However, we recently received the completion statement where the legal fees plus disbursement is more than 1500 pounds. Though they provided a breakdown of the cost, we are still very surprised how it can come to 220% of the initial estimate!!!

We just wonder if it is possible to ask for a discount or it is just not negotiable. Any one has similar experience? Many thanks in advance.

G_M

You will need to compare the inititial estimate (should have been a quote), together wih the solicitor's T&Cs that you agreed to, against the final Completion Statement.

Where are the extra costs? My guess is they are either
* disbursments, which are costs outside the solicitor's control that had to be paid, and which may have been impossible to acurately foresee or
* items hidden in the small print which you agreed to without realising

Since you have a breakdown, if you post here the items you feel are additional, or more than you expected, we can comment more helpfully.

helger

Compared with the initial quota, the main new items in the completion statement are:
(1) Landlord notice fee --- 250 pounds
(2) Professional fee for dealing with shared ownership --- 300 pounds; this is charged in addition to the standard legal fee
(3) Legal fees paid to the housing association --- 300 pounds
We know the initial quota is an estimate. However, we are not sure if 220% of the estimate is normal. More importantly, we wonder if it is possible to ask for a discount or it is just not negotiable.

kmmr

helger wrote: »

Compared with the initial quota, the main new items in the completion statement are:
(1) Landlord notice fee --- 250 pounds
(2) Professional fee for dealing with shared ownership --- 300 pounds; this is charged in addition to the standard legal fee
(3) Legal fees paid to the housing association --- 300 pounds
We know the initial quota is an estimate. However, we are not sure if 220% of the estimate is normal. More importantly, we wonder if it is possible to ask for a discount or it is just not negotiable.

1) Landlord notice fee --- 250 pounds: The solicitor isn't making any money on this. It's a fee to the landlord, set by the landlord. It is something they can't know in advance.
They probably could have estimated it, but now they know, and it is clearly a cost for you.
(2) Professional fee for dealing with shared ownership --- 300 pounds; this is charged in addition to the standard legal fee
They should have warned you about this. This IS a fee to the solicitor. Did they know in advance it was SO? Then then should have told you this cost - or made it clear once they realised.
(3) Legal fees paid to the housing association --- 300 pounds
Again - that's a fee charged by the housing association. I don't think this is a normal charge, so it would be difficult for the solicitors to have anticiapted it. It is fair for you to pay it.

G_M

helger wrote: »

Compared with the initial quota, the main new items in the completion statement are:
(1) Landlord notice fee --- 250 pounds
(2) Professional fee for dealing with shared ownership --- 300 pounds; this is charged in addition to the standard legal fee
(3) Legal fees paid to the housing association --- 300 pounds
We know the initial quota is an estimate. However, we are not sure if 220% of the estimate is normal. More importantly, we wonder if it is possible to ask for a discount or it is just not negotiable.

1) is a disbursement. It's charged by the LL. The solicitor could have anticipated this fee would be chrged, but not the amount which is outside their control

2) Shared Ownership is more complex than 'normal' conveyancing. At what point did you tell the solicior this was a SO purchase? If when requesting their quote, then their quote should have included this. If the solicitor did not know it was SO till later, then they could not have included the cost in their original quote.

3) As 1 above

helger

Thanks all for the reply. Just wonder should we bother asking for a discount for this surprise?

McKneff

Just say to the solicitor that it is considerably more than you expected and you hadnt budgeted for it.
Ask for a discount, you wont get one unless you do.

Let us know how you get on.

Soot2006

Don't ask, don't get!
That's the spirit of moneysaving ... however be prepared to pay it if they won't budge, as your T&C most likely indicate that there might be unpredictable costs.

G_M

helger wrote: »

Thanks all for the reply. Just wonder should we bother asking for a discount for this surprise?

I got a surprise myself today.

Weht to Sainsbury expecting to spend £30. Girl at the checkout asked fo £45! I asked for a discount but for some reason.......

sonastin

Did the initial estimate give a breakdown? If it did, you can compare the individual items. For disbursements which are more than their estimate, there is little they can do about it so there isn't much you can make them do. For common disbursements (e.g. local search fees), they should have a pretty good idea (assuming they work in the area a lot?) so they shouldn't get that wrong and you might be able to get them to share the pain. For things like HA fees, etc. it is pretty much "whatever the HA feels like charging" so unless they have dealt with this HA before they have no way of guessing other than "this is what other HAs sometimes charge". Your best line of challenge is "why didn't you tell me it was more than your guess at the time you found out" - if they are hard-hearted there isn't a lot you can do.

For their fees, there is more room for negotiation as it is entirely under their control. You can try to get them to lower their fees to take a share of the pain but it is going to depend largely on what you told them initially. There is every chance that, if this is a much more complicated purchase than they originally quoted, they have actually taken a hit on your fees (which is made up for by some poor sap paying over the odds for a simple straightforward transaction).

As others have said, no harm in asking but be honest with yourself about what you were actually told and what they originally quoted to do for you - it might not necessarily be what you thought you were told.