Roads retention being used to complete road works.

tarajayne

RabbitMad wrote: »

Whilst its very community sprited of you to offer the full £5k you might find your mortgage company will onnly let you have £3k plus legal costs

I think you offer is more than generous - tell the little * your community spirit is putting in £2 more than you have to

Would the mortgage company even know? I know it was them who wanted the retention in the first place but we have remortgaged since then with a different provider.

TrickyDicky101

tarajayne wrote: »

Would the mortgage company even know? I know it was them who wanted the retention in the first place but we have remortgaged since then with a different provider.

Do you have £5k immediately to hand that you can hand over for these works?

RabbitMad

Why didn't you continue your old thread - https://forums.moneysavingexpert.com/discussion/3584903

tarajayne

TrickyDicky101 wrote: »

Do you have £5k immediately to hand that you can hand over for these works?

No, something else they're not happy about.

tarajayne

RabbitMad wrote: »

Why didn't you continue your old thread - https://forums.moneysavingexpert.com/discussion/3584903

Thank-you, I posted from my phone and struggled to search for it.

Edit, doh, just thought I should have gone into my profile!

TrickyDicky101

Was the nature of your retention simply a discount from the price of the property or did you have an actual agreement to pay it over to the developer when the roads had been completed?

if the former, i would think that the cost of the road work should be borne by all interested parties equally. If the latter then who will be enforcing payment (to the developer) of this retention? is the developer still involved or has he gone bust?

tarajayne

TrickyDicky101 wrote: »

Was the nature of your retention simply a discount from the price of the property or did you have an actual agreement to pay it over to the developer when the roads had been completed?

if the former, i would think that the cost of the road work should be borne by all interested parties equally. If the latter then who will be enforcing payment (to the developer) of this retention? is the developer still involved or has he gone bust?

It was in our contract that the money be held by the developers solicitor until he completed the roads. He has since gone bust and the roads were not done so the contracts states it comes back to us to cover our liability. This was done on the instruction of our mortgage company.

tarajayne

Part of the roads are covered by the section 38 and the council are due to start work to resurface those in the next couple of weeks, the two cul-de-sacs that are not covered and there are twenty one houses that affects so the cost has to be covered by them. The cost they have now given is £63k.

TrickyDicky101

So have you received back the £5k from his solicitor or has it gone back to the mortgage company?

I am no lawyer but it would seem to me that you had an obligation to pay this money to the developer and he had an obligation to build you a road. Since he hasn't completed the latter then you get your money back. Whoever will now undertake the building of the road (ie the residents' association or whatever) has no call on this retention money, so the costs should be split equally.

tarajayne

TrickyDicky101 wrote: »

So have you received back the £5k from his solicitor or has it gone back to the mortgage company?

I am no lawyer but it would seem to me that you had an obligation to pay this money to the developer and he had an obligation to build you a road. Since he hasn't completed the latter then you get your money back. Whoever will now undertake the building of the road (ie the residents' association or whatever) has no call on this retention money, so the costs should be split equally.

It's due back to us at some point soon. It's a horrible situation and causing a lot of bad feeling, those without retentions are using the retentions that the six do have to reduce their own liability.