How much do you charge?
There are two elements. Firstly the conveyancing including the report on title to the SIPP trustees and secondly the SIPP structure set up and advice.
The conveyancing for a leaseback para hotel apartment or similar purchase is charged as for any non-SIPP transaction with fees starting at £2000 (no VAT). Please click here for our conveyancing fees. For other commercial buildings fees will depend on the nature of the property and the transaction. Please note our fees are exclusive of disbursements and in addition to the notaire's fees.
The typical costs for the SIPP structure begin at £3500 (plus VAT). We will provide an estimate at the outset. Please note that the costs generally do not make these transactions cost effective if the pension fund is less than £200,000. You must however make your own assessment of the cost benefit position.
Why can't you be more certain on these SIPP structure fees ?
It depends on the complexity of the transaction and the time we have to spend explaining the structure to the notaire and your lending bank. Also our experience on SIPP purchases in France is that although the process can be standardised to a certain degree, each transaction has its own nuances.
Could the fees end up being higher ?
We prefer to avoid this but it is possible and we will tell you in advance if we consider that the matter is becoming more complex or protracted than anticipated.
Why is there no VAT on the conveyancing fees ?
Because the services we provide relate to land outside the UK. The tax work is subject to VAT.
How much do I have to pay upfront?
Two thirds of the conveyancing fees and two thirds of the SIPP set up fees with the balance payable at the latest before completion takes place. We reserve the right to ask for payment on account of disbursements or if the matter becomes more protracted or complex than envisaged at the outset.
If I pay you the money can I recover this from my SIPP?
Yes as soon as the SIPP has the funds they will reimburse you. This means for higher rate taxpayers our fees come at a 40% discount.
What happens if the transaction goes abortive?
We will invoice you on a pro rata basis.
Can I pay fees using my protected rights?
Usually yes but you need to discuss this with your SIPP provider.
Are there any additional fees?
We act for your SIPP provider not you. If your SIPP provider has no experience in French property and requires additional input from us this will be billed at £325 per hour plus VAT and will probably be ultimately paid by you.
Why can't you also deal with the notaire's work in France?
We cannot deal with the completion in France, as this is (at present) illegal under French law, as the French government has given notaires a fixed fee monopoly on this aspect of the transaction. This means the notary's fee is in addition to our fee.
Why do I need to use you for the conveyancing?
The SIPP trustees require a report on title from a solicitor with professional indemnity insurance covering French conveyancing, which is not available from a notaire. We try to ensure that a notaire who is familiar with a SIPP purchase is used but this is not always possible. It is necessary for an English solicitor to liase with the notaire to make sure that the correct structure is put in place and the SIPP fund secured.
Can I use a different solicitor for the conveyancing and just use you for the SIPP structure work?
No. The SIPP service is only available as a package.
I understand the notaire's fees are fixed but are you negotiable on your fees?
No.
Anything else?
Yes the retainer between us and the SIPP fund which is our client (not you) is set out in our terms and conditions a copy of which will be sent to you.
What are your fees for putting an existing property I own into a SIPP either as an in specie contribution or by selling it to my SIPP?
The same fees as above will be charged to your SIPP. The SIPP trustees will need a report on title and the tax structure must be put in place. Notaire's fees should be low at about 350 euros.
What if I need more bespoke tax advice?
We can provide this at additional cost and will discuss your requirements with you. We have considerable experience of French related tax issues for people moving to or buying property in France.