Solicitor fees explained: fixed fees, hourly rates and no win, no fee

Legal fees vary widely depending on the type of work, its complexity, the experience of the lawyer and where the firm is based. Understanding the main charging methods will help you compare quotes and avoid surprises.

Fixed fees

A fixed fee is a set price for a defined piece of work. Fixed fees are common for residential conveyancing, simple wills, lasting powers of attorney, uncontested probate applications, and settlement agreement advice. They give you certainty, but check exactly what is included and what would count as "extra" work, such as a leasehold property, a mortgage from a second lender, or a dispute.

Hourly rates

For work where it is hard to predict how long things will take, such as most disputes and contested family cases, solicitors usually charge by the hour. Time is normally recorded in units of six minutes. Rates depend on the lawyer's seniority. A partner charges more than a trainee, but may also work more quickly. City-centre and London firms generally charge more than regional firms.

If you are charged hourly, ask for an estimate of the total cost, a breakdown by stage, and a promise that the firm will tell you if the estimate is likely to be exceeded. You can also ask for a cap on fees.

Conditional fee agreements (no win, no fee)

Under a conditional fee agreement (CFA), you pay no fee, or a reduced fee, if your case is unsuccessful. If you win, the solicitor can charge a "success fee" on top of their normal fees. In personal injury claims, the success fee you pay is capped at 25% of the damages, excluding damages for future losses. CFAs are most common in personal injury and clinical negligence cases. See our guide to no win, no fee claims.

Damages-based agreements

A damages-based agreement (DBA) lets the solicitor take a percentage of the compensation you recover, rather than charging by the hour. There are legal caps on the percentage: 25% in personal injury cases, 35% in employment tribunal cases and 50% in other civil cases (including VAT). DBAs are often used in employment claims.

Disbursements and VAT

Disbursements are costs the solicitor pays to third parties on your behalf. Examples include court fees, search fees, Land Registry fees, medical reports, expert witnesses and barristers' fees. They are usually charged on top of the solicitor's own fee. VAT is charged on most legal fees and on some disbursements, so check whether a quote includes it.

Getting the other side to pay

In many civil court cases, the losing party is ordered to pay part of the winner's legal costs. You will rarely recover everything, and in the small claims track costs recovery is very limited. In family cases, each party usually pays their own costs. Ask your solicitor how the costs rules apply to your matter before you start.

How to keep costs down

• Prepare before meetings: a short timeline and copies of key documents save time.
• Group your questions into one email rather than sending several.
• Ask whether you can do some tasks yourself, such as gathering documents.
• Consider mediation or negotiation, which are usually cheaper than court.
• Check whether you are covered by legal expenses insurance or a trade union, or qualify for legal aid.

Price transparency

SRA-regulated firms must publish price and service information for certain common services, including residential conveyancing, uncontested probate, employment tribunal claims for unfair and wrongful dismissal, immigration applications (excluding asylum), debt recovery up to £100,000, motoring offences dealt with in the magistrates' court, and licensing applications for business premises. This makes it easier to compare firms before you get in touch.

If you think a bill is too high

Raise it with the firm first. If you are still unhappy, you can complain to the Legal Ombudsman about the level of fees as part of a service complaint. In some cases you can also ask the court to assess the bill, but strict time limits apply.