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Buying in a Ltd Co - Conveyancing and hidden costs of going Ltd?


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Hi All, 

 

We are looking to buy our first property using our Ltd Co. that we have set up. We have found a property in need of refurb and we are looking to buy using bridging finance (we do have the cash to buy out right but prefer to use bridging), refurb and refinance later. 

 

We have gone to our usual solicitor who has worked for us on a few land and property deals before that have always been straight forward mortgages buying in our own names. However for the first time as a limited company their quote seems to have increased quite a bit (£1,500 +VAT + disbursements for searches etc) and 'guideline timeframe' is just not good enough for quick turnaround purchases. The only thing that is really different is that I said 'buying as a limited company' and 'bridging finance'! The house is only worth £50k. 

 

Can anyone recommend a conveyancing solicitor that is experienced in Limited Companies buying using bridging finance that have reasonable fees? 

 

Cheers,

 

David.

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Hi David.

 

Two points. Firstly what did your solicitor previously charge you and how long ago was this? Maybe their fees have gone up?

 

Secondly, have you asked them why the costs are as quoted? There may be a reason that they will quantify with you so it's worth asking the question ad getting really clear.

 

 

Rob.

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Evening Evening,

 

Am thinking of setting up a Limited BTL Company however am slightly confused.

Can I use the standard Articles of Association OR do they need to be amended due to nature of the business?

 

Pointers here would be greatly appreciated

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I've just recieved a quote from my solicitor for  my next btl purchase. I asked the price difference between buying in my personal name or as a ltd company. They replied with there is no extra cost for purchasing in a ltd company which makes me wonder if some solicitors are taking advantage of the situation?

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Hi all,

 

thanks for the replies.

 

I have had another couple of quotes now from other solicitors now, so will share these for others to sense check against their own costs. My quotes were:

 

Quote 1 - £995 + VAT + expenses & transfer fees etc (estimated at £270) from one firm that do a lot of work for property investors and said they could complete the work for a purchase with a bridging loan within 2-4 weeks (if all other parties provide information in a timely manner and no unexpected issues)

 

Quote 2 - £650 + VAT + expenses & transfer fees etc. Again has experience working with investors but gave a guideline timescale of 6 weeks. 

 

These are both cheaper and quicker than our old solicitors. 

 

At our original solicitors the partner I used to work with has retired. I think he was far more old school and would discount on smaller bits of work knowing we would keep going back and use him on the bigger bits (he was right, we have sent a lot of other business their way over the last few years).

 

Thanks everyone.

 

 

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