Solicitor's Extra £25 charge for Special Conditions
andybonny
Posts: 8 Forumite
Hi,
We're currently in the process of remortgaging. Our Mortgage broker recommended a large conveyancing solicitors who have a set fee of £500.
This week this solicitor wrote to me informing me that he has an extra charge of £25 for upholding a special condition in our mortgage offer which details repaying a couple of small loans.
His letter quotes:
Repayment of Existing Credit Commitments.
The undertaking must be signed and dated by all borrowers and return to this office. It is your responsibility to ensure that you fulfil the terms set out in the undertaking. If for any reason you are unable to fulfil the agreed terms you must contact Nationwide Building Society to advise of the same. My professional fees to satisfy the special condition are £25.00 plus VAT and will be accounted for on completion.
We were already aware of the special condition but are surprised that the solicitor wants to charge the extra £25 for this.
I spoke to the Nationwide who made the mortgage offer who were also bemused about this extra fee. In fact the lady I spoke to said she has never heard anything like it.
We have previously had mortgages which we have stated that the extra funds were to be used for paying off credit cards etc but with no extra solicitors charges.
I would have thought that the Mortgage offer is stating it's special condition and if we agree to go ahead with the offer we are also agreeing to upkeep the special condition.
Should the solicitor even be getting involved in this part of the agreement between the Nationwide and ourselves? And charging extra do so?
Andy
We're currently in the process of remortgaging. Our Mortgage broker recommended a large conveyancing solicitors who have a set fee of £500.
This week this solicitor wrote to me informing me that he has an extra charge of £25 for upholding a special condition in our mortgage offer which details repaying a couple of small loans.
His letter quotes:
Repayment of Existing Credit Commitments.
The undertaking must be signed and dated by all borrowers and return to this office. It is your responsibility to ensure that you fulfil the terms set out in the undertaking. If for any reason you are unable to fulfil the agreed terms you must contact Nationwide Building Society to advise of the same. My professional fees to satisfy the special condition are £25.00 plus VAT and will be accounted for on completion.
We were already aware of the special condition but are surprised that the solicitor wants to charge the extra £25 for this.
I spoke to the Nationwide who made the mortgage offer who were also bemused about this extra fee. In fact the lady I spoke to said she has never heard anything like it.
We have previously had mortgages which we have stated that the extra funds were to be used for paying off credit cards etc but with no extra solicitors charges.
I would have thought that the Mortgage offer is stating it's special condition and if we agree to go ahead with the offer we are also agreeing to upkeep the special condition.
Should the solicitor even be getting involved in this part of the agreement between the Nationwide and ourselves? And charging extra do so?
Andy
0
Comments
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Hi
In my view 500 isn't a great price for remortgage legals to begin with. When you set up with this solicitor did they provide you with a schedule of charges for work which is not covered in the £500 fee?I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I know that the £500 fee is a bit over the top especially as the same company did our last remortgage 2 yeas ago for £294.
Surprisingly the solicitors know that we get a £500 cashback from the lender to cover any fees.
I will check the schedule of charges to see whats included or not as an extra fee this evening.0 -
Is the broker receiving a fee from the solicitor for the introduction? It should be shown on your engagement letter.
If he is, perhaps he might like to ask his solicitor if a charge over and above the £500 cashback is really fair.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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