sum held by solicitor after sale of property and redemption of mortgage.

lellow_lorry

Can any one say whether this happened to them? I sold my house on 3rd Sep of which after redemption of mortgage and agent fees left me with £69000. After deduction of £500(200 already paid) for solicitor costs, leaving 68500. I received 67500 and a note letter stating "it is becoming increasingly common that redempion figures are not always accurate. In this case we will withold £800 for up to 10 days to satisfy that it is paid up in full. This has never happened to me before and the 6th house i have sold in the last ten years. I would have thought if the bank messed up....send me a letter and i can sort it out. Oh....and its now 14 days and still no sign of it. Secondly if I had bought in same process ...does that mean I would have to set aside extra money for this process again?

david29dpo

Your solicitor is right. He has a duty to make sure the loan is paid off in full. The lender will refuse to withdraw the charge from your sold house if money is owing. It sounds a bit daft that a lender can send the wrong redemption amount to your solicitor AND then hold him liable but thats how it is. As soon as the charge is lifted from your sold house you will get the money. This is a fairly recent thing and quite rightly a little unfair to solicitors.

Richard_Webster

Your solicitor is right. He has a duty to make sure the loan is paid off in full. The lender will refuse to withdraw the charge from your sold house if money is owing. It sounds a bit daft that a lender can send the wrong redemption amount to your solicitor AND then hold him liable but thats how it is. As soon as the charge is lifted from your sold house you will get the money. This is a fairly recent thing and quite rightly a little unfair to solicitors.

That's right. Solicitor gives an undertaking to buyer's solicitor to remove the charge at the Land Registry. If the lender refuses to do this because they haven't had enough money the solicitor is still bound to his undertaking, all because of lender inefficiency. After all they could give a figure assuming that any payments due had not been met. Seller would then get a refund if a direct debit went through a day or so before the sale went through.

lellow_lorry

Thanks for the replies. First time its occured to me. Guess I will have to kick the banks backside to confirm this is all done and dusted.

david29dpo

And complain to them on solicitors behalf as well!!