Solicitors cost for updating section 92 on mortgage

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Nety

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#96983 8-Feb-2012 17:13

Hello, we are wanting to extend our mortgage slightly and have been told by the bank that we must have section 92 updated. The solicitors we use have said that their cost will be ~$600. I am just wondering if that is a reasonable charge? Also is this something that you can put pressure on the bank to help cover?

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#578817 8-Feb-2012 17:35

What is section 92??

Anything related to downloading of music or movies off the net?

networkn

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#578820 8-Feb-2012 17:38

It's the signing over of your first born child.

No that doesn't seem reasonable. I had my whole house purchase handled for $1200.

I would ask the lawyer to explain what takes 3 hours @ $200 an hour?

amford

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#578821 8-Feb-2012 17:39

Well @ around $150 per hour for the lawyer plus some time for his receptionist to do some work I would think it wouldn't be hard to clock up around $600. I would say that would be a guide and it could cost less depending on the work involved.

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#578889 8-Feb-2012 19:22

Section 92 is the stated priority limit for the purposes of section 92 of the Property Law Act 2007, being maximum amount for which the mortgage has priority in relation to any subsequent mortgage, is as stated in the mortgage.

I was hoping someone might have had to do a similar thing. Apparently ~$140 is fees they have to pay for various things like lim reports etc.

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#578907 8-Feb-2012 20:09

Go on the property talk website, there are some lawyers on that who are very helpful, and maybe able to help you.
But that fee does sound high.

mudguard

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#578912 8-Feb-2012 20:22

Increasing the priority is usually because their is a need to borrow more. The banks usually set this as 1.5 the value of the property at the time of purchase. I would see if the bank has their own solicitor as it may be around $200.
But that's if it's straightforward, if there are any tricky aspects it will need to be handled by your own solicitor.

And yeah, the solicitor will charge whatever they charge.

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Nety

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#579323 9-Feb-2012 15:54

Thanks for your help. I did talk to the bank about them providing a solicitor and they do not have one (was not happy about that anyway as a slight conflict of interest there). I called around and found one that is charging $500. Still more then planned but at least then it is done and should not need to be done again any time soon.
The others did agree that disbursements are around $100-$150 so the time charge is the lions share at $350-400 of the cost.

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#579379 9-Feb-2012 17:51

Yeah there is a conflict of interest I suppose. But it's useful for banks when it needs to be done often. And for the precise reason you've stated, that your own solicitor will charge like a wounded bull.

k14

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#579381 9-Feb-2012 17:56

Nety: Hello, we are wanting to extend our mortgage slightly and have been told by the bank that we must have section 92 updated. The solicitors we use have said that their cost will be ~$600. I am just wondering if that is a reasonable charge? Also is this something that you can put pressure on the bank to help cover?

Is all your mortgage on floating? If you are able to change to Kiwibank (assuming that isn't your bank already) then you should swap over to them. No only will they have the cheapest rate around but they also charge you nothing to change to them. I have just completed the paperwork today to switch from Westpac to Kiwibank. Getting 5.50% floating which is 0.24% lower than the "special rate" Westpac gives me. I asked Westpac what they could do and after 30 mins of deliberating the bank manager was "pleased" to say they could match Kiwibank. Yeah thanks, seeya Westpac :)

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#579417 9-Feb-2012 19:36

Or you could do that. Depends what you're after really. It's a lot of hassle changing banks for sake of legal fees. Plus if they if have to change the Priority anyway they may charge.

I'm not sure what the floating rates are to be honest. But yeah, bit tougher if you're fixed!
I think kiwibank is awesome as long as you don't need to go into the branch. Ever.

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#579539 10-Feb-2012 08:14

Part fixed part floating.. will leave it where it is and just take the hit. Thanks for the suggestions.

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#579953 10-Feb-2012 20:44

As a lawyer myself the charge does not seem unusual. My charge out rate is $360 plus GST and registration of the priority change at LINZ with a pre and post registration search would take disbursements to over $100. So being quoted $600 is about right.

networkn

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#579958 10-Feb-2012 20:52

Wow $360 an hour, unbelievable.

At that rate, of course it seems reasonable, however, does it take a $360 + GST an hour lawyer to make a change to such a document would be more relevant?

gradwefran

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#579975 10-Feb-2012 21:33

No, not necessarily. But drop a bit off the hourly rate and the original quote is still there or thereabouts. Its the kind of job which is too small to be profitable but a real pain for the client when the bank insists on it.

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#589844 3-Mar-2012 13:45

We had a section 92 priority increase done in November and cost $300 plus GST (in Auckland). We doubled our mortgage, went from around $270k to around $500k construction loan and will be topping up about 10% as soon as we get code compliance. We work through a broker and though we are not getting the low Kiwi Bank rate we are saving by getting "trade" prices and getting unusual things approved with little hassle.

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