Is VAT Payable on these Solicitor Costs ?

Leodogger

We have had a quote from our solicitor for costs in relation to our property purchase and sale. On our Freehold purchase she has added VAT to her fees (which I think are correct), Stamp Duty Return on our purchase and the Telegraphic Transfer Fee, all subject to VAT.

Do you pay VAT on Telegraphic Transfer Fees & Stamp Duty Returns ?

Also on our Sale, she has added VAT to the charges for Electronic ID on our purchase (£10 per name) & Leasehold Uplift on our Sale £100 (we have a leasehold property).

Are these VAT items correct ?

kingstreet

Completion of the SDLT return by a solicitor is a VATable service. The better solicitors include this in their headline fee, so then there would be no debate over it being VATable.

The others may all include an element of fee included for the solicitor work, unlike a disbursement which wouldn't. Therefore they would be expected to charge and collect VAT, IMHO.

Jessica29

We are paying VAT on the bank transfer fee and identification search fee, and of course the actual solicitor's costs.

Leodogger

I would love to know how much work solicitors actually DO on property conveyancing seeing as to how the forms have become more and more complicated and longer and longer to be completed by the client and the majority of the work is now done by the seller/buyer and the solicitor seems to do very little for their £600 or so !!

Years ago when we sold our first house, all we filled in was a client information form of a few pages, a fixtures and fittings form and that was it! Now I have 4 sets of forms with no less than 29 pages of forms to fill in and a client letter to sign, plus all sorts of identification and proof of funds copies of bank statements etc to supply !!!!! What a complete rip off organisation solicitors have become. :mad:

It would have been easier to do the contracts myself. All solicitors do is send off a few letters to councils etc for searches, and notify the land registry of the new title which letters are no doubt all standard letters printed off by secretaries, a standard contract form printed off without their help and everything is sent by post to be signed and returned.

What do solicitors actually do in conveyancing these days ???? Tell me how many ACTUAL hours do they spend in doing the work themselves?

googler

You're paying them to ensure that your contract to purchase/sell, and the exchange of the title to the property is carried out legally in accordance with the law of the land, amongst other things.

Would you have the expertise to spot anything amiss with your contracts?

Do you have any experience in the field?

http://www.channel4.com/4homes/buy-sell/buying-property/buying-advice/why-use-a-conveyancing-lawyer

Leodogger

googler wrote: »

You're paying them to ensure that your contract to purchase/sell, and the exchange of the title to the property is carried out legally in accordance with the law of the land, amongst other things.

Would you have the expertise to spot anything amiss with your contracts?

Do you have any experience in the field?

http://www.channel4.com/4homes/buy-sell/buying-property/buying-advice/why-use-a-conveyancing-lawyer

What I am saying is that 20 yrs ago the solicitor FILLED in these details and now the buyer/seller is expected to do it but their fees have only increased, NOT decreased due to their reduced input in the process.

I have just spent 4 hours completing the forms and am still not finished !!:mad:

Leodogger

By the way, I notice that on the SDLT form you can indicate that you are completing this form yourself and authorise the solicitor to input the dates into the transaction and submit the form and money due yourself, thereby saving £75 !

Has anyone ever done this and is it easy to do ?

kingstreet

I've been in the business thirty years next year and in my experience, conveyancing costs have fallen. The firm in Chester which did my first purchase (£21,500) in 1988 charged more than the Stafford firm which did my last (£210,000) in 2004.

I'm getting quotes for clients at around £450 + VAT and they include completion of the SDLT return and acting for the mortgage lender.

Leodogger

kingstreet wrote: »

I've been in the business thirty years next year and in my experience, conveyancing costs have fallen. The firm in Chester which did my first purchase (£21,500) in 1988 charged more than the Stafford firm which did my last (£210,000) in 2004.

I'm getting quotes for clients at around £450 + VAT and they include completion of the SDLT return and acting for the mortgage lender.

Yes but this does not include the little added "extras" that are inflated to boost the fees and which you can't argue about because they ask you to sign BEFORE they start the legal work to say you will pay any extra disbursements deemed necessary !

Leodogger

JWhite wrote: »

Yes but this does not include the little added "extras" that are inflated to boost the fees and which you can't argue about because they ask you to sign BEFORE they start the legal work to say you will pay any extra disbursements deemed necessary !

By the way, I have shopped around and at the cheapest have been quoted £450 just for the sale, £450 for the purchase plus £100 for a leasehold property (on the sale) but these fees do not include the SDLT return on the purchase which is an additional £75.

jayencee

They do a lot more work than the estate agent does, but for much less money. The forms you are asked to fill in nowadays are getting longer because legislation is changing all the time, and everybody wants to cover themselves. Who knows the property better than the owner?