First time buyers solicitors fees

Catsnbooks36

hi,

myself and my partner are first time buyers. We were looking for a solicitor for our purchase and were went via co-op to premier property lawyers which is one of their appointed ones for a fixed fee of £1,800. For context we’re buying a flat which has been rented and is now vacant. Obviously we have no chain our side. We are close to exchange but our solicitors fees are now at £4,800 and rising with every query. To me, it seems like that fixed fee is misleading. As first time buyers, we don’t know what we’re doing and feel as though nothing as been explained by the fees go up without any discussion as to why. I’ve asked for explanations of each fee and have done extensive googling as well as talking to others who have bought and sold and their fee is no where near ours. I’m really not happy to be paying this but it feels like we’re too far down the line now. I will be going to the company after completion and then probably to the financial ombudsman. But wanted some advice on how to do this and if there is anything I should do before that.

Many Thanks

Brie

Likely it will come down to the T&Cs you signed up to. If you can't see anything that allows them to charge so much in the T&Cs then I would first go to co-op to find out what they know about the offer.

then again what does co-op have to do with the whole thing?

user1977

Are we talking purely about legal fees i.e. for solicitor time, or is the £4800 including other costs which happen to pass through the solicitor? (searches, registration, SDLT etc)

Myci85

Wow, that's some hike! I know that flats can cost a bit more due to extra conveyancing, but surely not more than 2.5 times initial quote? As advised, read very carefully through your T&Cs and try and find some wording you can share on here maybe.

MeteredOut

Have you they provided you with a breakdown of the £4,800? If not, that's the first thing to ask for.

You say rising with every query? Has there been a lot of queries? Was this in their schedule of costs and what was covered by their fixed fee?

Catsnbooks36

https://forums.moneysavingexpert.com/discussion/6673783/first-time-buyers-solicitors-fees

so our fees are for:

• searches (we’ve already paid these)
• title information and completion searches
• Notice fee - charge
• Notice fee - assignment
• Certificate of compliance
• Issue deed of covenant x2
• application for membership
• hm land registry fee
• Chanel search indemnity insurance

the other fees are their fees for

• purchase
• Leasehold
• Mortgage
• Land tax form
• x2 gifted deposits
• deed of covenant fee
• Expedition fee (if completion and exchange are within 3 days)
• subsequent notice of transfer and or charge
• deed of covenant fee
• third party portal fee
• Occupier waiver fee
• plus VAT

It seems like there’s multiple deed of covenant fees - I’m not sure what this is and what the difference between each fee is.

I understand some of these are unavoidable and part of a flat rather than house but I don’t feel as if they’ve been explained to us or we’ve been told upfront what costs what. I cannot find specific t&c’s but will check in with their terms of business. Thanks for all your replies.

Bigphil1474

The solicitor fee may be fixed, but that doesn't mean the total cost of their conveyancing will be fixed. The total sounds excessive (we paid around £2,500 to sell one property and buy another @£325k), but there will be add-ons.

Double check the fee doesn't include stamp duty. Some solicitors add this on then take it off if you are below the FTB threshold.

MeteredOut

https://forums.moneysavingexpert.com/discussion/comment/82047102#Comment_82047102

Did they just provide that list, or a breakdown of each fee?

Or is it just a boilerplate list of whats covered under the £4800? eg, the Expedition fee - was your completion and exchange within 3 days? Did you specifically ask for that to happen? Did they arrange your mortgage for you? Do you have gifted deposits?

Catsnbooks36

hello, to answer some questions:

yeah so stamp duty has been taken off so that’s not included and yeah each fee is next to it on the draft.

We haven’t completed yet. The expedition fee is on there “in case” we exchange within 3 days which I have now asked that we don’t as I don’t want to pay this and based on my work schedule.

they didn’t arrange the mortgage - my mortgage broker did

we do have gifted deposits - I understand this incurs a fee.

But a lot of the language used I don’t get - for example deed of covenant is on there 3/4 times - I don’t have any explanation of what these are for or what the difference in each fee is. Although the items are listed I have no explanation from them as to what the fees are, like notice fee - charge and notice fee - assignment. What does this mean? I have asked them to explain it but they don’t reply to me when I ask for this.

MeteredOut

It's still not clear if you have been provided a breakdown of fees.

AI will tell you what the various fees are, in general terms (give it a try), but only your solicitor will be able to tell you specifically what each is for, and whether the duplicates are valid.

I'd keep asking the questions and make it clear you will be unable to pay until you fully understand what you are being asked to pay for. Solicitors work under strict guidelines to provide clear fee information.

EDIT: I posted this thread into Gemini and asked it for feedback. The first thing it said

"Premier Property Lawyers (PPL) is a massive factory-style conveyancer notorious for offering a low baseline "fixed fee" and then adding a long list of menu-priced supplements for leaseholds, mortgages, and gifted deposits."

It didn't suggest anything else you've not already been advised, but will explain what the individual fees are if you want to find out.

user1977

notice fee - charge and notice fee - assignment. 

I presume the lease requires notices to be given to the freeholder about (1) the assignment of the lease to you, and (2) the grant by you of the charge (mortgage) over the lease. So the fees are the freeholder's charges for dealing with those (and possibly your own solicitor's fee for doing the work).