Solicitor cost for a new buy flats

adeel26

Hi All

I have recently initiated a process to buy a new flat in Manchester. The planning permission hasn't been granted for the project yet but is due to be announced on Dec 2015.

I have been advised by the developers to appoint a solicitor to process the paper work and legality matters. Below are the charges the solicitors are indicating.

As this is my first purchase I just wanted to make sure these charges are some what acceptable. Please let me know. Many thanks

Fees VAT Total
Solicitor 645 129 774
solicitors engrossment fee 120 0 120

Land Registery Fees 190 190
Stamp Duty 800

Bank Charges 35 7 42
Completion of Land Transaction Return 60 12 72
Local search 62.95 0 62.95
Miscelleanous Searches 7 0 7
Anti-Money Laundering Search 10 2 12

C_Mababejive

Land reg fees are standard and checkable. As for solicitors costs,,well most solicitors/conveyancers do the job on line now so the idea of solicitors sat their burning the midnight oil with ink pen and quill is history. I suspect some would still have us believe it is some kind of black art..

Lungboy

Personally I wouldn't spend a penny until planning permission was granted. No idea what the engrossment fee is, but the rest sound about right.

C_Mababejive

Lungboy wrote: »

Personally I wouldn't spend a penny until planning permission was granted. No idea what the engrossment fee is, but the rest sound about right.

Engrossment sound like padding to me.. :rotfl::rotfl:

eddddy

adeel26 wrote: »

I have recently initiated a process to buy a new flat in Manchester. The planning permission hasn't been granted for the project yet but is due to be announced on Dec 2015.

Just to make sure... is this a 'conventional' property purchase where you pay all the money on completion, for a flat which has already been built?

Or is it an 'investment scheme' where you pay the developers a big chuck of money in advance, which they use to fund the building of the flats?

If it's the latter, you need to approach things very differently.

davidmcn

C_Mababejive wrote: »

Engrossment sound like padding to me..

Isn't this a charge some developers are making? (basically a contribution to their legal fees). Ridiculous either way, but probably difficult to avoid if it's the developer's policy.

dimbo61

So let me get this straight.
You are a First Time Buyer.
Buying a flat in Manchester which is a Whole in the ground at the moment Without any planning permission and will not be built for another 12/18 months IF the developer does get planning permission.
Do not spend any of your hard earned money on a project which may never happen.

adeel26

Hi All

Thanks for your reply.

The palnning permission is suppose to be granted in Dec. i have paid £5000 to reserve which will be refunded in case if the palnning is denied.

The solicitor would not charge anything until the planning permission is granted.

The developer is asking 25% at the approval of planning permission, after that 10% (June 2016) and the rest at the compelition of the project which is Q2 2017.

Just wanted to check the cost developer solicitor is asking. :j

[Deleted User]

I agree that this is a very risky proposition.

Have you investigated the company proposing this development - inside, out, backwards, sideways on etc?

Do you need a flat so badly you are prepared to wait well over a year for something that may never happen to happen.., surely there are better propositions out there?

Please think very carefully about this. Its already cost you £5k.., how water tight is their claim that this is refundable?

davidmcn

adeel26 wrote: »

The developer is asking 25% at the approval of planning permission, after that 10% (June 2016) and the rest at the compelition of the project which is Q2 2017

Asking 25% to be paid to them? Or held on deposit? You realise this isn't normal either way?

When do you get your money back if it's not completed on time (or if they never even buy the site or start building)?

eddddy

adeel26 wrote: »

The developer is asking 25% at the approval of planning permission, after that 10% (June 2016) and the rest at the compelition of the project which is Q2 2017.

This sounds like exactly what I was referring to here:

eddddy wrote: »

Or is it an 'investment scheme' where you pay the developers a big chuck of money in advance, which they use to fund the building of the flats?

If it's the latter, you need to approach things very differently.

Here's a news story about a company that worked in this way: http://www.manchestereveningnews.co.uk/business/business-news/dylan-harvey-residential-in-administration-926233

You need to be a very sophisticated investor to get involved in these schemes.

You risk losing every penny you pay into schemes like this, and being sued for even more.