Hidden fees - completion statement

Lisa2211

Hi, we received our completion statement in readiness for exchange / completion (which is now delayed 😩) and there is an additional £200 plus vat included in our bill with the explanation;

If you are financing your purchase with a mortgage (or other forms of secured lending),

where we are instructed by your lender, and under the terms of your mortgage offer you

are to be responsible for your lenders legal costs, these fees will be £200 plus VAT per

legal charge secured on the property. 


Is this standard for all solicitors? It wasn’t in the quote or mentioned anywhere that I can see. It’s an unexpected addition to a very large bill already! 

Thanks 

NameUnavailable

Yes, they are acting for your lenders as well. It's probably noted in the paperwork they sent you initially that extra charges might apply for 'additional' work. If you didn't have a mortgage it wouldn't apply.

diystarter7

Caught us out as well.
They should be clearer IMHO.

I'm sure it is not the 240 quid that hurts you in the scheme of things it's the not knowing that is the shocker.

These outfits need to be clear about anyone taking out a mortgage will be charged xxx.

user1977

Lisa2211 said:

Is this standard for all solicitors? It wasn’t in the quote or mentioned anywhere that I can see.

No, though fairly common. I would generally expect solicitors to build it into a fixed fee quote for a purchase (on the basis that most purchases involve a mortgage). Are you sure it wasn't mentioned in the terms of business at the outset?

Flugelhorn

I think that quote often it is mentioned as an extra fee if you are getting a mortgage - seem to remember it was £199 + vat in about 2008 so hasn't gone up much 

NameUnavailable

user1977 said:

Lisa2211 said:

Is this standard for all solicitors? It wasn’t in the quote or mentioned anywhere that I can see.

No, though fairly common. I would generally expect solicitors to build it into a fixed fee quote for a purchase

But that means you are overpaying if you don't have a mortgage. Also 'fixed fees' usually relate only to the solicitors charge and not any disbursements or additional work that might crop up.

eddddy

NameUnavailable said:

user1977 said:

Lisa2211 said:

Is this standard for all solicitors? It wasn’t in the quote or mentioned anywhere that I can see.

No, though fairly common. I would generally expect solicitors to build it into a fixed fee quote for a purchase

But that means you are overpaying if you don't have a mortgage. Also 'fixed fees' usually relate only to the solicitors charge and not any disbursements or additional work that might crop up.

I assumed what was meant was:

You say to the conveyancer:

"I want to purchase a property for £x,
- it's leasehold
- I will be buying with a mortgage"

And the solicitor says "My fixed fee quote for that purchase is £y - plus the following expected disbursements...."


Or alternatively, you say to the conveyancer:

"I want to purchase a property for £x,
- it's freehold
- I do not require a mortgage"

And the solicitor says "My fixed fee quote for that purchase is £z - plus the following expected disbursements...."


At least that's how I've always got quotes from solicitors.

user1977

NameUnavailable said:

user1977 said:

Lisa2211 said:

Is this standard for all solicitors? It wasn’t in the quote or mentioned anywhere that I can see.

No, though fairly common. I would generally expect solicitors to build it into a fixed fee quote for a purchase

But that means you are overpaying if you don't have a mortgage.

Or if your transaction involves less work than average in general. But that's the point of charging fixed fees rather than an hourly rate.

diystarter7

From memory, I think most if not all give a breakdown of costs but as I recall there is always some type of surprise, a surprise that costs you more than you felt/led to believe  but its all there in the small print.

Ksw3

It was detailed on our mortgage offer and led me to double check if it had been included in the estimate (it had). Bad form not to include it. 

user1977

Ksw3 said:

It was detailed on our mortgage offer 

No, that's purely a notional amount which the lenders put in their offers (as they need to be realistic about the fact that some legal fees will be required). It's got nothing to do with whether your solicitor actually charges a separate amount (or how much that amount is), or bundles it into their overall fee for the purchase.