House Buying- Transer Agreements Question

jamieukonline

Hi there,

I am in the process of buying a shared ownership property, and have just received a draft tranfer afreement from the solicitors.

It states a contract rate of 4% above Barclays Bank Base Lending rate.

I asked my solicitor what this meant and was advised it's a standard things, however I'm still rather confused as to what it actually means!

Is this something extra I'll have to pay or what?

An explanation would be much appreciated,

Many thanks,
Jamieukonline

Doozergirl

It's not something you should have to pay. It's basically the rate of interest that is charged should the bill not get paid on time.

jamieukonline

Hi,

Thanks for your reply, thats reassuring, was worrying it would be extra expense!

So is this in case the deposit isn't paid on time then?


Thanks again

Doozergirl

Well, I'm sure that your vendor's solicitor would not exchange without the deposit monies in their account so I would assume (there's others much better qualified than me!) that it would interest payable should the funds necessary for completion reach their account on time?

Never been in that situation, luckily!