Legal costs

Legal costs in property finance, explained

Legal fees are one of the most variable costs in any property-secured facility, and they're often underestimated because two sets of solicitors are usually involved rather than one. Here's what typically drives the bill.

Category: Costs & pricing

Product: Commercial Loans

Whose fees: Usually both your solicitor's and the lender's
Driver: Title complexity, leases and loan structure
Timing: Payable regardless of whether the deal completes
Speed premium: Urgent completions can cost more

Why you often pay two sets of legal fees

On most secured lending, the lender instructs its own solicitors to protect its interest, and you're typically responsible for their costs as well as your own solicitor's fees. This is standard practice rather than a hidden charge, but it does mean the total legal bill is higher than a straightforward property purchase without finance attached.

What increases legal costs

Complex titles (unregistered land, multiple charges, restrictive covenants), commercial leases requiring review, or a corporate borrowing structure involving multiple entities and guarantees, all add legal work and therefore cost. A straightforward single-title residential investment property is at the cheaper end; a multi-let commercial building with several tenancies is at the more expensive end.

Speed and its cost implications

Tight completion deadlines — common on bridging and auction purchases — sometimes require solicitors to prioritise your file or work outside normal hours, which can attract a premium. It's worth asking your solicitor upfront whether an urgency fee applies if the timeline is genuinely tight.

How to keep legal costs proportionate

Using solicitors experienced in the specific type of transaction (bridging, commercial, development) tends to be more cost-effective than using a generalist firm unfamiliar with lender requirements, since fewer queries and delays arise. Ask for a fixed quote where possible rather than an open-ended hourly rate, particularly for standard transaction types.

Frequently asked

Do I have to use the lender's chosen solicitor?

No, but the lender's solicitor acts for the lender specifically, and you'll usually still need your own separate solicitor to act for you, even on the same transaction.

Are legal fees refundable if the deal falls through?

Generally not, since the work carried out to that point has still been performed. Costs are usually calculated on time and complexity already incurred rather than a full fixed fee if the case doesn't complete.

Why is bridging legal work sometimes more expensive?

The urgency and shorter timescales typical of bridging can mean solicitors need to prioritise the file, and the transaction structure (rolled interest, specific exit clauses) can require more bespoke drafting than a standard mortgage.

Can legal fees be added to the loan?

Sometimes, depending on the lender and loan structure — worth asking specifically, since not all facilities allow legal costs to be capitalised into the loan.

How can I get an accurate legal cost estimate early?

Ask your solicitor for a fixed quote based on the specific transaction type once the property and structure are known, rather than relying on a generic estimate, and factor in the lender's solicitor cost separately.

Budget legal costs accurately from the outset

Call 0345 2690628 and we'll connect you with solicitors experienced in this type of deal.

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