Legal fees for FTB New Build

CarlaAEl

Hello all,

I am a first time buyer purchasing a new build (not on help to buy) and I have some legal fees quoted that dont seem normal. Hopefully someone can help me on this. The solicitor (not yet instructed) has quoted me the following

Transaction - £1000
transfer fess - £30
Registration for AN1 notice - £20
SDLT return - £50
Acting on behalf of the lender - £300 - This is the one I feel is not normal and shouldn't be there - any opinions?

Disbursements
Developer's Solicitor Notice of Charge fee (estimated) - £144
Developer's Solicitor engrossment fee (estimated) - £168
- Why should I be paying their developer solicitor fees?

Other searches and disbursements seem to be normal.

With the land registry of the title deed - they want to charge me the £540 for the postage, is it normal to request this be done via the gateway which is £270 instead?

Any help much appreciated - I am trying to negotiate these down but with no luck so far

Thanks,
Carla

hazyjo

The solicitor will need to be on your lender's panel. Is it? They are acting for the lender too - so not sure if the ones you have picked are charging for it, or whether they're not on the panel and are having to use another solicitor for the financials (I had to do this once. Wouldn't do it again - would make sure they were on my lender's panel.)


If it's an associated or recommended solicitor by the developer - don't use them. Source your own. You need them to be looking after your best interests. Not the developer's.

davidmcn

Acting for the lender does involve additional work compared with a cash purchase so in theory not unreasonable, but I would expect most solicitors to regard that as standard and include it in their fee (since the vast majority of purchases are with mortgages).

Developers' costs will just be part of their standard terms, like it or lump it - nothing to do with your choice of solicitor.

Not sure if you can do online registration for a transfer of part (which is what this will be).

AdrianC

There's one minor detail you haven't mentioned...

Is this solicitor "recommended" by the developer?

If so, don't. Find your own.

CarlaAEl

This one was recommended by the developer - and I have the same apprehension

I guess thats why they keep adding on all these extras

in terms of the acting on behalf of the lender - they are on the panel of my chosen bank - so I guess they shouldn't be charging me a separate fee for this?

asm89

They all charge a fee even if on the panel, it's more expensive when they aren't on the panel. But this cost seems inflated! I thought the cost of the lender's fee was around £150.

This solicitors seems expensive, compared to some other quote i've received. I'm going through the process now. Shop around...

AdrianC

Not using the "recommended" solicitor isn't about fees. Fees are small beer.

It's about having somebody who is on your side when they look at the paperwork. ENTIRELY on your side. Not a solicitor with a vested interest in going along with the vendor, because they get a lot of business from them. The fact that some of your fees will go back to the vendor as a marketing commission is beside the point.

Yalpsmol

Use a different independent solicitor who wants to make sure yours and your lenders money is well spent (not whose priority is that the developer gets a sale).

ethank

Do shop around, but do speak to solicitors and ask them what experience of new builds they have. Some solicitors are just not set up to work at speed.

A new build developer is expecting you to exchange in 28 days.

AdrianC

ethank wrote: »

A new build developer is expecting you to exchange in 28 days.

...from notification of release date, assuming you're buying off-plan.

asm89

AdrianC wrote: »

...from notification of release date, assuming you're buying off-plan.

It's from receipt of MoS or Contracts by your solicitor even off-plan, so could be months prior to handover date being known