Fees

Service Charge Management frequently involves debt collection and enforcement. This firm is experienced in the range of enforcement options from initial demand letters to the issue of forfeiture proceedings.

Service Charge Recovery often commences with Debt proceedings in the Civil National Business Centre (formerly known as the County Court Business Centre). This is a service required by our clients to assist in the necessary cash flow for Service Charge Management throughout the year. Efficient Service Charge Recovery allows the agent to manage funds and avoid disruptions to services through lack of funding. It permits flexibility in recovery from tenants who face affordability issues and allows for resolution of Service Charge Disputes.

With Service Charge Recovery forming the basis of our client’s needs, we have adopted fixed fees for these services so our clients can manage and control their expenditure. We have also split such fixed fees between pre-action and post-issue so our clients can avoid escalation of costs if we are able to resolve the arrears collection without the issue of a claim.

We have set out below the basis of our fixed charges which do not apply to defended proceedings, or which commence otherwise than by a part 7 claim. The costs do not include disbursements, which are funds that this firm will spend on third parties necessary to your case, for example court fees, barrister fees, courier fees or fees payable to HM Land Registry.

The fees are fixed at the outset and are based on the complexity of the matter and level of arrears.

    1. On the majority of claims, where the Leaseholder is based in England and Wales, and where the Service Charge arrears are under £9,000.00:
      • a) The initial fee is £600.00 – “Solicitors Fee”
      • b) The second fee is £600.00 – “Solicitors Court Summons Fee”
    2. In the event that the Service Charge arrears over £9,000.00 and/or if the Leaseholder is located in Scotland or Northern Ireland:
      • a) The initial fee is £900.00 – “Solicitors Fee”
      • b) The second fee is £1,200.00 – “Solicitors Court Summons Fee”
    3. If the Leaseholder is located in the Republic of Ireland, the European Union, or elsewhere overseas:
      • a) The initial fee is £900.00 – “Solicitors Fee”
      • b) The second fee is £2,400.00 – “Solicitors Court Summons Fee”

A broad outline of our work which is considered in the calculation of costs is as follows:

Pre-Action:

    • Taking instructions from you and/or your managing agent to receive files and relevant information on your behalf.
    • Review of HM Land Registry documentation, Service Charge accounts and documentation, and the property Lease to assess your case and suitability for a Debt Recovery Claim.
    • Issue of pre-action correspondences and responding on your behalf with respect to resolution of payment disputes, taking additional instructions and advising of the Service Charge documentation required to address issues raised, and liaising with your agent as necessary throughout.

Claim Issue:

    • Taking instructions on the appropriate address for service, claim sums and preparation of the Part 7 claim form.
    • Submission of the completed Part 7 claim and monitoring the status of account and responses made to date of entry for judgment.
    • Completion of the request for judgment on your behalf.
    • Correspondences as necessary with the court in respect of the above.
    • Corresponding with you as to the additional enforcement steps that are most cost efficient and effective upon judgment being entered.

A non-defended claim can take as little as 1 month or up to 3 months on average to complete dependent on the length of the pre-action period and any delays that may occur in court processing.

We can also offer fixed fees on various additional enforcement solutions including the following:

    • £1,500.00 plus VAT for works in connection with the preparation and issue of S.146 notices (including the necessary works to complete preparation of the notice, effecting the necessary delivery of same, and correspondences with Defendants and Lenders in response to same).
    • £1,000.00 plus VAT for the execution of a Warrant of Possession (including preparation and issue of warrant, correspondences with the court to secure appointment date, and submission of necessary forms to the bailiff to secure the appointment thereafter).
    • Fixed fees may be offered for select additional works if agreed at the outset of the matter. This can include works such as Part 7 claims out of the jurisdiction, Charging Order Applications and Statutory Demands.

Any work for which a fixed fee is not agreed, fees will be calculated on an hourly rate plus VAT. Our charge-out rates are £325 plus VAT per hour for services undertaken by Lorraine Scott who will be assisted where possible by a Grade D Fee earner who will be billed at £175 plus VAT.  Otherwise, if work is undertaken by a Grade B or Grade C Fee earner the fees will be billed at the rates of £200 and £250 respectively per hour plus VAT.

Short outgoing letters and routine phone calls are charged at 1/10 of an hour. All other work is timed in six-minute units and charged at the relevant hourly rate. The number of hours completed by which graded fee earner remains at the discretion of the firm.

We reserve the right to increase the hourly rates if the work done is particularly complex or urgent, or the nature of your instructions means that we may be required to work outside normal office hours.

To help you control your costs we must make you aware that there are three main elements to the legal costs of any matter:

    • Our charges
    • Disbursements
    • Costs that you may have to pay another party.

Disbursements

Disbursements are expenses that must be paid by the firm on the client’s behalf in order to complete the work. Disbursements may include, but are not limited to:

Costs that you may have to pay another party

There is a risk that you may have to pay your opponent’s costs in litigation matters which will need to be reviewed and discussed on individual instructions.

Recovery of costs will be addressed in individual instructions and will be dependent on the terms of the property Lease alongside any cost orders made by a relevant court of tribunal. We would highlight at the outset that, as a general rule of thumb, it is reasonable to expect costs to be awarded in proceedings on the basis of 75% of reasonable costs to the successful party.

Management of Cost Recovery is key to Service Charge management to ensure viability of ongoing Service Charge collection. Our experience of working within this area means we can quickly advise on the various routes to Recovery and the prospects for Cost Recovery on individual instructions as permitted by the applicable Leases and in consideration of the individual file history.