Fees for Buying

The type of conveyancing services we offer vary from case to case, but a typical range for buying a property would be £1,250 - £3,500 (plus VAT at 20% and disbursements).

When buying a property, the factors that may increase or decrease your costs might be things such as the value of the property, whether there is a lease involved, if the property is a new build or a listed building, etc.

Typical disbursements for buying a property may include (this is not an exhaustive list):

• Search fees which are in the region of £300 - £400 (plus VAT at 20%, where applicable). Some of these fees are set by the Local Council in which the property is located.
• HM Land Registry fee – this fee is set by the Land Registry and depends on the value of the property.
• Electronic money transfer fee - £35 plus VAT at 20% per transfer
• Stamp Duty Land Tax, which is a percentage of the purchase price (typically for properties over £125,000).

Please visit Stamp Duty Land Tax Calculator for further details about the likely cost of this disbursement.

Fees for Selling

When selling a property, the price range is £1,250 - £3,500 (plus VAT at 20% and disbursements). Issues such as those listed above under “Buying” are also applicable for selling a property and can bring your costs up or down from the range given here.

Disbursements are not usual when selling a property, but on occasion there may be something payable, for example, if you are selling a leasehold property and you need to obtain a Management Pack. When you contact us for a quote, we can provide you with more details.

Stages of Work and Timescales

The main stages in residential conveyancing are as follows:

• Initial stages. Take your instructions and give you initial advice.
• Pre-contract. Obtain and review title deeds, carry out searches, etc.
• Exchange of Contracts. Agree a completion date with other party.
• Between Exchange and Completion. Draw up Transfer Deed and carry out final searches.
• Completion. Moving day.
• Post-completion. Register ownership with Land Registry, pay Stamp Duty if applicable.

Please note that exchange of contracts is likely to take between 6 - 8 weeks, but other factors may affect this timescale. We will regularly communicate with you during each stage of the process to inform you of any developments.

Experience

The solicitor dealing with your matter would be Cosma Vento. Cosma has over 10 years post qualification experience and is qualified in both England & Wales and Italy. Cosma has dealt with residential property matters ranging from straight forward buy/sell deals to complex transactions.

These costs apply where the claim is in relation to a single, unpaid, business invoice which is not disputed of up to £100,000 and where enforcement action is not needed. Our charges are calculated based on our hourly rates of £250 an hour, plus VAT at 20% and disbursements as set out below. Disbursements are payments which we make to third parties arising in the course of providing our services. VAT is charged at the prevailing rate, currently 20%, on our hourly rates and some disbursements.

If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one off letter is required), or on an hourly basis if more extensive work is required.

STAGE 1 – LETTER OF CLAIM

Fees: Depending on the volume of documents to be reviewed, the likely fee for Stage 1 is £150 to £350 plus VAT at 20% and disbursements, if applicable. This involves sending a Letter of Claim to the debtor requesting payment of the debt, plus interest and other charges (if applicable). A possible disbursement may include the fees of a tracing agent or process server to locate the debtor, which would be in the region of £100 plus VAT at 20%.

Timescale: We aim to prepare and send the Letter of Claim within 7 working days. The timescale to conclude the process (provided the debtor pays promptly) is likely to be in the region of 3 – 4 weeks from our receipt of your instructions to receipt of payment.

The fee estimate for Stage 1 includes:

• Taking your instructions and reviewing documents.

• Basic investigation/searches of the correct identity and address of the debtor.

• Sending a Letter Before Action.

• Receiving payment (or any other response) and sending on to you.

STAGE 2 – ISSUE A COURT CLAIM

If the Letter Before Action is not successful in recovering your debt, the next stage is to initiate court proceedings against the debtor. The debtor has set time limits to respond to the claim and, if they fail do so, a request can be made for Judgment to be entered against the debtor in default.

Fee: The likely fee for Stage 2 is £1,000 to £1,500 plus VAT at 20% and disbursements. This fee is based on our hourly rate of £250 an hour plus VAT at 20% and will depend on the time spent on the matter using the points under “The fee estimate for Stage 2 includes” section below. For example, if payment is not received after the post-judgment letter, we will provide you with advice on the available next steps and therefore more time will be spent on the matter. In addition to the court fees below, a further disbursement may include the fees of a process server to serve the claim on the debtor, which are usually in the region of £100 to £200 plus VAT at 20%.

The table below sets out the appropriate fee payable to the court.

Court issue fees are correct at the time of publishing this note, but are subject to change. Please go to the following link to ascertain the current court issue fee applicable: https://www.gov.uk/court-fees-what-they-are.

Anyone wishing to proceed with a claim should note that:

• The VAT element of our fee cannot be reclaimed from your debtor.

• Interest and compensation may take the debt into a higher banding, with a higher cost.

• The costs indicated above are not for matters where enforcement action, such as bailiffs, is needed to collect your debt.

Timescale: The timescale for initiating a claim up to the point of obtaining default judgment will depend largely on the speed in which the court processes the claim and any request for Judgment. Usually this process will take in the region of 3 – 6 months from our receipt of your instructions to start the claim to receiving a judgement in your favour. If enforcement action is needed, the matter will take longer to resolve.

The fee estimate for Stage 2 includes:

• Taking your instructions and reviewing documentation.

• Basic investigation/confirmation of the correct identity and address of the debtor.

• Drafting court papers, sending them to court for issuing, arranging for service of the papers on the debtor (if applicable), all in accordance with the Civil Procedure Rules.

• Where no Acknowledgment of Service, or Defence, is received within the relevant time limits, then applying to the Court to enter Judgment in default.

• When Default Judgment is obtained, writing one letter to the debtor explaining that unless payment is made, enforcement action will follow.

• Keeping you updated throughout.

• Receiving payment (or any other response) and sending on to you.

• If payment is not received within 1 – 2 weeks after the post-judgment letter, then giving you basic advice on the available next steps and the likely costs involved.

WHAT IS NOT INCLUDED

The above fee estimates for Stages 1 and 2 exclude any other steps, or work, not mentioned above. For example, they do not include:

• Any enforcement action that may be needed where a Judgment is obtained but the debtor still does not pay, ie. even after Stage 2 is exhausted. This might involve instructing the Court Bailiff or a range of other possible enforcement options..

• Any additional work required because the debt is not straightforward or involves complex issues (see below).

STAGE 3 – ADDITIONAL DEBT RECOVERY OPTIONS

Should your debt still be outstanding after you have obtained judgment in your favour, then we can assist you by completing the paperwork required for the following enforcement methods. We will advise you of the most appropriate one to use on your case.

1. Issuing a Statutory Demand – An additional debt recovery option which does not involve a court process, but can be used as a means of debt recovery is to serve a statutory demand (which is a written demand for payment of a debt) on either an individual debtor or a company that owes you money. A statutory demand can only generally be used where the debt is undisputed e.g. where the debtor has admitted that the debt is owed or a judgement has already been obtained in respect of it.

Fee: Our fees for this service are between £250 - £500 plus VAT at 20% depending on the complexity of the claim. As mentioned above, factors such as whether the location of the debtor is unknown and requires tracing or whether the debt is defended, may increase the cost, but we would inform you of this prior to carrying out the work. Disbursements may include the process server fees, which are usually in the region of £100 to £200 plus VAT at 20%.

Our fee includes:

• Taking your instructions and reviewing documentation.

• Basic investigation/confirmation of the correct identity and address of the debtor.

• Preparing and issuing a statutory demand tailored to your requirements.

• Arranging for it to be served on the debtor.

Timescale: We aim to prepare and serve a statutory demand within 10 working days of being formally instructed and receiving the underlying paperwork from you. Where the debtor is difficult to locate or intentionally evades service, serving the statutory demand may take longer. The entire process can take up to 12 months to conclude if it requires court hearings.

2. Bankruptcy Proceedings – In the case of individual debtors, statutory demands are often used as a precursor to bankruptcy proceedings. You can therefore present a bankruptcy petition in respect of a debt if you can show that:

• The debtor appears either unable to pay the debt or to have no reasonable prospect of being able to pay.

• The debt is for a sum of £5,000 or more, payable either immediately or at some time in the future and is unsecured.

Where a court judgement under which a debt is owed to you has not been appealed or set aside, or a statutory demand has been validly served on the debtor and has not been set aside, you should be in a position to present a bankruptcy petition against an individual.

Fee: Our fees for this service are £1,200 plus VAT at 20% plus the following disbursements:

• Court fee of £280 (correct at the time of publishing)

• A petition deposit fee £990 (correct at the time of publishing)

• Process server – in the region of £100 to £200 plus VAT at 20%.

• Search fee - £11

• Agent’s/Counsel’s fees for hearing – depends on location & to be advised

Our fee includes:

• Taking your instructions and reviewing documentation.

• Basic investigation/confirmation of the correct identity and address of the debtor.

• Preparing and issuing a bankruptcy petition based on your requirements.

• Arranging for it to be served on the debtor.

Timescale: We aim to prepare and serve a statutory demand within 10 working days of being formally instructed and receiving the underlying paperwork from you. The whole process can take up to 12 months to conclude if it requires court hearings.

3. Winding Up Proceedings – A winding up petition can be presented in respect of a debt owed to you by a company provided you can show that:

• The debt is for a sum of £750 or more and a valid statutory demand has been served on the company, by leaving it at the company’s registered office which, for three weeks, the company has neglected to pay.

• Within the jurisdiction of England and Wales, there is a judgment, decree or order of the court in your favour which the debtor has failed to pay and that judgment has not been appealed or set aside.

• To the satisfaction of the court, the company is unable to pay its debts as they fall due.

• To the satisfaction of the court, the company is insolvent on a balance sheet basis.

• There is no genuine dispute as to the debt and the debt cannot be cancelled by a valid cross claim by the debtor.

Fee: Our fees for this service are £1,500 plus VAT at 20% plus the following disbursements:

• Court fee - £280 (correct at the time of publishing)

• Petition deposit fee - £1,600 (correct at the time of publishing)

• Process server – in the region of £100 to £200 plus VAT at 20%.

• Agent’s fees for hearing – dependent on location

• Advert fees for London Gazette - £101.52

Our fee includes:

• Taking your instructions and reviewing documentation.

• Basic investigation/confirmation of the correct identity and address of the debtor.

• Draft and issuing a winding up petition based on your requirements.

• Arranging for it to be served on the debtor.

Timescale: We aim to prepare and serve a winding up petition within 10 working days of being formally instructed and receiving the underlying paperwork from you. This process can take up to 12 months to conclude if it requires court hearings.

FEES WHERE THE DEBT IS NOT STRAIGHTFORWARD OR INVOLVES MORE COMPLEX ISSUES

If the debt is not straightforward, or involves issues making it more complex, our fees may be higher than the above estimates. We will identify them at the outset where possible although they may not be apparent until some point during the above processes. In these cases, we will discuss any further work required and provide you with a revised estimate of fees as necessary. These additional costs will be based on our hourly rates of £250 plus VAT at 20%.

Examples of issues where the debt is not straightforward or involves more complexity, include:

• There are extensive documents relating to the debt, for example, a large contract that has to be considered, or the paperwork/information you provide to us is incomplete, unclear or not in order.

• Difficulties identifying or locating the correct debtor.

• The debtor responds to the Letter of Claim raising unforeseen issues, which require further investigation and/or advice and/or further pre-action correspondence.

• The debtor asks for time to pay and/or we are required to negotiate a payment plan.

• The debtor disputes the debt for any reason, or makes a counterclaim.

• The debtor does not follow the correct process or protocol.

• Procedural issues arise which require additional investigation, communications or an application to the court.

• There are any insolvency issues, for example, we have to investigate and/or advise you on the debtor’s ability to pay.

• Any limitation (legal time limit) issues.

• There is a foreign element, for example, the debtor is based abroad or the debt is based on a contract governed by a different country’s law or jurisdiction.

EXPERIENCE

The solicitors dealing with your matter would be Shazia Malik and Cosma Vento. Shazia has 12 years post qualification experience and is qualified in both England & Wales and New York. Cosma has over 15 years qualification experience and is qualified in both England & Wales and in Italy. They both have dealt with all areas of Debt Recovery including issuing Statutory Demands, County Court claims, including tracing unknown debtors, recovering debts from educational institutions, auction houses, businesses and individuals.