Legal fees for FTB New Build

sal_III

ethank wrote: »

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

They always say that, to deter people from diddling around. As long as there is steady progress with your mortgage, searches etc. they are happy to extend. It took about 3 months from reservation to exchange in my case.

The solicitor fees in my case for a new build with the added cost of HTB were about £1.5k which was in the "middle of the pack". Never bothered with detailed breakdown of costs, how much the solicitor apportions to each task is irrelevant for me. I only care about the total fee payable.

I didn't use the developer recommended solicitor, but I used the one recommended by my mortgage broker, based on the fact that I was extremely happy with his service. Ended up regretting it, extremely poor communication and needless delays causing avoidable stress. Will do my own research next time.

CarlaAEl

Seems consensus is to find my own rather than use their recommended. The only reason I am gaining a quote from their recommended is that as part of the negotiation they agreed to pay £1,000 towards legal costs (for their recommended solicitor).

Its now coming up expensive due to these unusual add ons:
1) £300 for acting on behalf of the lender (thats on top off their fee of £1,000 + VAT)
2) Then adding on the two developer solicitor fees - which no other quote has shown - i don't know if anyone has experience of been hit with fees for engrossment or notice of charge by the developers solicitor?

The solicitors answer was - "This is a cost that the developers solicitors charge – we have no control over this."

davidmcn

CarlaAEl wrote: »

2) Then adding on the two developer solicitor fees - which no other quote has shown

The other quotes won't have added it because they don't (yet) know that the developer will be asking for it - whereas these solicitors do know because they already deal with the developer.

The solicitors answer was - "This is a cost that the developers solicitors charge – we have no control over this."

As I said above, this is going to be a correct answer. I mean, in theory everything's negotiable, but you probably won't get anywhere.

Then again, they've said "estimated" beside the rather precise figures, so I don't know what that indicates.

asm89

All the charges they've listed are legit and will be incurred with every other solicitor too, they just don't quote up front.

Quick maths says that this will cost around & 800 after the £1k contribution from the developer. You are not going to find any other solicitor at that price. Its minimum £1300 from the many quotes I got.

Have you researched the particular solicitor and seen reviews. Obviously having an independent solicitor is ideal however if the recommended solicitor is actually a very decent firm, that should be taken into consideration.

Thrugelmir

CarlaAEl wrote: »

The only reason I am gaining a quote from their recommended is that as part of the negotiation they agreed to pay £1,000 towards legal costs (for their recommended solicitor).

2) Then adding on the two developer solicitor fees - which no other quote has shown

In which case they aren't actually gifting you a £1k plus VAT towards costs. Smoke and mirrors as they say.

CarlaAEl

Its still a lot more than £800 out of my own pocket as these are all charges:

Transaction £1,000.00
transfer fee £30.00
Registration AN1 pre contract (application to enter into agreed notice) £20.00
Acting for lender in connection with loan £300.00
Transfer fee (2) £30.00
SDLT Tax Return £50.00

Disbursements
Land registry fee (postal) £540.00
Bankcurptcy searches TBC
Land registry pre completion search £6.00
Search Pack £250.00
land charges search £2.00
AML Search TBC
contribution toward development search £5.00
Developer's Solicitor Notice of Charge fee (estimated) £144.00
Developer's Solicitor engrossment fee (estimated) £168.00

Totals = £2,545.00 (ex VAT)
minus £1000 contribution = £1,545.00
Including VAT to be paid £1,854.00

Do these all seem legit?

Is it normal for developers solicitors to be able to charge the buyer for notice charge and engrossment?

davidmcn

CarlaAEl wrote: »

Is it normal for developers solicitors to be able to charge the buyer for notice charge and engrossment?

They are able to charge you for anything they like. It's quite commonplace, though not universal.

Thrugelmir

CarlaAEl wrote: »

Do these all seem legit?

Obtain alternative quotes. Disbursements aren't fees. They are fixed costs which are simply being passed back to you to settle.

asm89

My maths was off, sorry. But helpful to see the breakdown

Run! It's expensive and although the tasks are legit, pricing is inflated
I can dm you a suggestion of a firm to use. I'm also buying in London
And yes postal Land Registry fee is ridiculous.

CarlaAEl

I made an error since disbursements are not VAT applicable
Thanks for your DM on recommended solicitors

Its certainly challenging making the right decision with so many options and variants to their fees