Secured loan - solicitors release deeds fee

Queserasera_3

Hello all,


A relative of mine is about to finish a secured loan from a well known company, there is one more payment to make next month.


She has just received a letter from the solicitors asking for £185 more than is due to be paid. When asked she was told it was a fee to release the deeds.


My relative has never been told about this and I have checked all her paperwork and there is nothing about a release fee.


The amounts from the original agreement are as follows:


Broker fee £500.00
Solicitors admin fee £270.00
Payment to my relative £4000.00


Total £4770.00


It states that in the credit charge/interest it includes the broker fee and solicitors admin fee.


Shall she just write back enclosing copies of all her documents showing this? Or does she have to pay this £185?


Any advice would be a appreciated.

iolanthe07

Release fees for documents like deeds are a common ploy used by solicitors to generate money for doing sod all. This does seem extortionate, though, and is worth fighting, especially as her documents specifically mention that solicitor's admin fees are included.

CKhalvashi

I'd be tempted to write to them, offering a fiver for their costs, stating that you have paid fees contractually and this is above and beyond what is required of you.

If they refuse, a complaint may be in line IMO, especially under the circs.

CK

BethanyD

Do not pay this fee - if they persist write to the solicitors regulation authority and complain that you are being harrassed

queserasera wrote: »

hello all,


a relative of mine is about to finish a secured loan from a well known company, there is one more payment to make next month.


She has just received a letter from the solicitors asking for £185 more than is due to be paid. When asked she was told it was a fee to release the deeds.


My relative has never been told about this and i have checked all her paperwork and there is nothing about a release fee.


The amounts from the original agreement are as follows:


Broker fee £500.00
solicitors admin fee £270.00
payment to my relative £4000.00


total £4770.00


it states that in the credit charge/interest it includes the broker fee and solicitors admin fee.


Shall she just write back enclosing copies of all her documents showing this? Or does she have to pay this £185?


Any advice would be a appreciated.

jonesMUFCforever

Whilst this charge is commonplace there was a change in the rules recently I think where the charges had to be reasonable - ask the solicitors for a copy of the original charges document.
I would expect Land registry charge to be around £70.

DCFC79

jonesMUFCforever wrote: »

Whilst this charge is commonplace there was a change in the rules recently I think where the charges had to be reasonable - ask the solicitors for a copy of the original charges document.
I would expect Land registry charge to be around £70.

If you choose the Land Registry route do so via the official site and not the copy cat website.

Queserasera_3

Thank you all for your advice.


My relative has contacted the solicitors who are asking for the release fee money and explained that it is not in any paperwork to be paid at the end of the contract.


The solicitors have pointed her to a clause stating that:
If the borrower settles the agreement early we will charge the costs of releasing the security over the property secured in favour of the lender. The current fee is £xxx.


The solicitor said they have reduced the fees since this was issued so it will be £100 less.


My relative will not be paying the loan early as it is the final payment.

Clive_Woody

Queserasera wrote: »

My relative will not be paying the loan early as it is the final payment.

Sounds like there will be nothing to pay then. I would write back to the solicitors and point this out and make it clear that this loan is not finishing early but in accordance with the agreement.

jonesMUFCforever

Clive_Woody wrote: »

Sounds like there will be nothing to pay then. I would write back to the solicitors and point this out and make it clear that this loan is not finishing early but in accordance with the agreement.

Clive did you not read first post header the bit about it being a Secured loan?
Paying off the loan is fine but to have the security removed you need to pay the Land registry the appropriate fee.
You don't have to do this of course now but if you ever want to sell or get another mortgage/secured loan it will become a problem.


If you check your mortgage statement if you have one it tells you what the charge is for the removal of their charge at the end.

Clive_Woody

jonesMUFCforever wrote: »

Clive did you not read first post header the bit about it being a Secured loan?
Paying off the loan is fine but to have the security removed you need to pay the Land registry the appropriate fee.
You don't have to do this of course now but if you ever want to sell or get another mortgage/secured loan it will become a problem.


If you check your mortgage statement if you have one it tells you what the charge is for the removal of their charge at the end.

The bit in the first post where it said all fees were already included?

jonesMUFCforever

Clive_Woody wrote: »

The bit in the first post where it said all fees were already included?

This fee can never be included at the beginning as you will not know how much the Land Registry fees will be in the future.


I absolutely guarantee you that this fee is payable.
The only argument is whether this one is reasonable or not.