New build property HTB - Solicitor

silversurf

We have found this amazing new build flat and our offer got accepted.

They are advising we have to use their recommended solicitor, because of past experience with customers not being great.

Is it legal to insist to use only their recommended solicitor?, which feels like conflict of interest, since they meant to represent me.

The sales representative advised it’s because we’re going through HTB.

Futuristic

It is against the HTB terms the developers are contracted under to force you to use a specific legal advisor. They can however offer an incentive for you to use them.

Quote when I asked the HCA/HTB:

We can confirm that a developer can under no circumstances insist that a buyer use any particular mortgage adviser or firm. They can offer incentives but cannot restrict or refuse to take reservations from purchasers wishing to use other intermediaries or legal representatives.

alex_163163

No you can use whichever solicitors you choose.
I've read that many people recommend finding your own and not using the developers. Like you say they are meant to work for you. I agree with them. But I would make it a point to ask any solicitors you get a quote from if they have good knowledge of the HTB process.

Also agree with the above poster - they can offer incentives e.g. Money towards legal costs. Or as a friend of mine found out - carpets were included if they used the developers recommended firm.

silversurf

Thank you guys for quick reply, had a feeling about this when they mentioned "you have to use this Solicitor". I will speak to their recommendation and compare quotes.

Any ideas for first time buyer on HTB, would be a good quote? and what maximum cost I should expect?

alex_163163

I think when I bought 3 years ago it cost about £1000, not including stamp duty.
Unfortunately with HTB, I learned that there are extra fees that the solicitors add on to deal with the HTB part.
And the same if you have a HTB ISA. They may charge a fee to deal with redeeming this.
But I'd reckon about £1000 from my experience.

Other forum users may be able to confirm this more for you.

Hedgehog99

silversurf wrote: »

The sales representative advised it’s because [STRIKE]we’re going through HTB[/STRIKE].

s/he's getting commission if you do!

Best to keep the finer details of your finances private and use a solicitor working solely for you. The legal fees incentive is because it's highly advantageous for them to know what you and your solicitor are doing.

silversurf

Thank you Hedgehog99, I completely agree.

Had a chance to compare different Solicitors and brokers, found amazing deals with best rate, which saves me a small fortune over the course of having the mortgage.

Unfortunately the property developer can’t accept it, we have to use their recommendation only, they’re not willing to use someone else i found, its part of the development principle on HTB.

I almost accepted defeat, so I called HTB line, they can’t do much about the developer whatever rule they have in place, but he agrees they shouldn’t be doing it.

So I called HCA, echoing what @Futuristic had said, so they're sending an e-mail template on the matter to forward across, and willing to speak to the developer if needed.

I am trying to imagine positive outcome to this but I can’t, I can see them hiking the price higher for using someone else, or rejecting my offer.

Any advice?

Suits2017

I've just instructed a solicitor for HTB and they're charging £1700 buy thats including LBTT and I'm using a HBT ISA.

Futuristic

Solicitor can charge a maximum of £50+VAT for HTB ISA, HTB Equity Loan should be about £100. Also there might be land registration fee which is £270 (fixed cost to land registry).

I'd say around £1100-1500 is fair depending on above.

silversurf

Thank you for feedback everyone, I found a solicitor for £1,550, since I am using HTB and have HTB ISA.

Unfortunately the property development doesn't want me to use my own Solicitor or broker, they're verbally advising its their principle for all HTB application, I have asked for this in writing, they said "we don't have it in writing, I am verbally telling you".

So we decided to look somewhere else for our perfect home, and remove this developer off our list.

Good thing from this incident that I am better prepared.

dhokes

alex_163163 wrote: »

But I would make it a point to ask any solicitors you get a quote from if they have good knowledge of the HTB process.

What's the most effective way to find out if they truly have an understanding/experience of the HTB process? If you ask them, I'm sure they'll just say yes.