New build holding deposit

JCBennett

Hi everybody,
I am currently buying a new house off plan from clearview homes in London.
Clearview homes are asking me to pay a £2000 holding fee for the house, but both my solicitor and mortgage adviser are telling me to give it to my solicitor for safety so it doesn't get lost if the building contractor goes under.
Is this the right thing to do as in give a deposit to a building contractor and not my solicitor or are Clearview homes going to (get the hump) for not doing as they ask?
please help..

Flat_Eric

Give the money to your solicitor to look after. That's a lot of cash.

gazzabboi

Seems a bit steep for a holding deposit, its usually only around £250. If you mean reservation fee, then that's different

JCBennett

gazzabboi wrote: »

Seems a bit steep for a holding deposit, its usually only around £250. If you mean reservation fee, then that's different

reservation fee thats it sorry.
Its just the estate agent and building contractors seemed very firm in saying it had to go to them. but as i said my guys are saying the opposit so i'm at a bit of a loss.

gazzabboi

My reservation fee was £500, paid direct to the builder, but will come off the final price of the house, its so I dont pull out before exchange I guess. Most builders I know of only charge £500 also. Maybe its because its a company in london and houses cost more. I would maybe try and get them to reduce their fee.

JCBennett

Yes i tried trying to get them to reduce it but no.
the main thing i am worried about is just rocking the apple cart by giving the money to my solicitor rather than then and find myself with no house.as was said earlier its alot of money..