Stage one
In the first instance we send a Letter Before Action (LBA) for a fixed fee of £250.00 plus VAT and disbursements. Disbursements are generally up to date official copies of the title for the property at a cost of £3.00 (no VAT).
Costs Information/Transparency Statement
The SRA Transparency Rules require us to provide you with price information in relation to debt recovery up to the value of £100,000.00.
Our debt recovery service predominantly deals with the recovery of ground rent arrears, service charge arrears and the enforcement of judgments. If the Lease or Transfer permits, our intention is to seek to recover our costs contractually from the debtor.
Stage two
If proceedings are required, we charge a fixed fee depending on the value of the debt of £600.00 to £1,500 plus VAT and court fees to prepare and issue a money claim and to enter a default judgment.
| Value of Debt | Fee |
|---|---|
| Up to £3,000.00 | £750.00 plus VAT |
| More than £3,000.00 but not more than £10,000.00 | £950.00 plus VAT |
| More than £10,000.00 | £1,500.00 plus VAT |
| Value of Claim | Fee |
|---|---|
| More than £300 but not more than £500 | £50.00 |
| More than £500 but not more than £1000 | £70.00 |
| More than £1000 but not more than £1500 | £80.00 |
| More than £1500 but not more than £3000 | £115.00 |
| More than £3000 but not more than £5000 | £205.00 |
| More than £5000 but not more than £10000 | £455.00 |
| More than £10,000 but not more than £200,000 | 5% of the value of Claim |
Our fixed fee includes:
- Taking your instructions and reviewing documentation
- Undertaking appropriate land registry searches
- Drafting and issuing the claim form and particulars of claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgment in default in received and if payment is not received providing you with advice on next steps and likely costs.
Other relevant Court fees may include £325.00 – £355.00 to issue possession proceedings; £255.00 for an interim application; £100.00 for a consent order and hearing fees in the range of £25.00 – £1,090.00 depending on the value/track.
Stage three
If the case is defended, then we charge costs on a time recorded basis at an hourly charge-out rate of between £175.00 – £300.00 per hour plus VAT and disbursements which may include counsel's fees. Our charges are then calculated with reference to the time spent on the matter, including advising, attending you and others, preparing papers, correspondence, calls and advocacy.
Stage four
If necessary, we shall draft a service a Notice pursuant to section 146 of the Law of Property Act 1925 and serve this upon the debtor and their lender as a precursor to forfeiture at a fixed fee of £495.00 plus VAT.
Enforcement
There are various methods of enforcement available to the creditor, specific advice as to the most appropriate method will be discussed with each client together with the relevant cost.
Experience and Qualifications
Our team has over 20 years post qualification experience. Rebecca Spearpoint qualified as a dispute resolution Solicitor in 2016. Rebecca is supported by Kerry Coleman, the firm's COLP who qualified as a Solicitor in 2011 having trained in a specialist landlord and tenant practice. Kerry has been working in Property Litigation since 2009 both in private practice and in-house.
Get Gateway Today
Register for our eNewsletter to receive the latest news from Gateway.