Interest on deposit

mattyh

We're just about to complete on a new-build, after exchanging contracts in March this year. For exchange, we paid a 5% deposit, which (according to our solicitors when I asked them) was passed to the builder's solicitors and has been held in the builder's solicitor's client account ever since.

Now I know that solicitors aren't meant to profit from interest gained in their client accounts - but in this case if anyone's entitled to the interest I suppose it's the builders themselves?

Just clarifying to see if there's any chance I can get my hands on 6 months interest...!

Tassotti

Hi mattyh

There was a thread about this some time ago. Might be worth searching for it.

If I remember correctly, the solicitor can only hold the deposit for a certain amount of time, and then interest is payable to you after this time period.

If I am mistaken, I am sure someone will correct me.

Be Lucky

Tass

mattyh

well i'm sure adequate time has passed - though i think the real issue is who technically still 'owns' the money while it's still a deposit. If it's me - i should get the interest?

silvercar

I know that if your own solicitor holds money from you, you can get the interest. The law Society publishes a table of amounts against time limits.

In this case I think that the builders could be entitled to the interest.

WestonDave

mattyh - sorry its the builders.

Its a non refundable deposit so it, and any interest on it belongs to the builders - a quirk of the system means that deposits are however normally held by the sellers solicitors until completion rather than being paid over at the point of exchange.

I recently had to find a home for a six figure sum deposit with completion possibly over 12 months after exchange - not surprisingly the seller was anxious to get a good rate!