Solicitor retaining mortgage incentive to cover fees - Illegal?

lifegoeson2013

My lender has sent the funds for my mortgage today (Wed 15th) to my solicitor. Included with that is a cashback amount and a refund of valuation fee which is payable to myself.
This solicitor also has my deposit BUT I'm not getting the keys until Friday 17th April.
I asked them to provide me with my money which is almost £1,000 and I need it. They've told me that they won't pay it until next Thursday 23rd - I asked why and they said
"we don't release funds until the cash account has been finalised and they know I have retained sufficient money for our fees and the government charges etc."

Why is my cashback and valuation refund being used to cover fees and government charges... "etc".??
I am not legally minded but what if I didn't take the cashback and go for the valuation refund - how would they hav covered their fees and government charges etc? Also - what on earth is "etc" - money for tea and cakes???

JimmyTheWig

I would imagine that if everything goes wrong the solicitors will have to pay the money back to the mortgage company.
If they've given some of it to you then they can't do that and they will be the ones in trouble.

lifegoeson2013

JimmyTheWig wrote: »

I would imagine that if everything goes wrong the solicitors will have to pay the money back to the mortgage company.
If they've given some of it to you then they can't do that and they will be the ones in trouble.

I understand that, they explained it to me. I accept I cannot get my money until after completion. What I'm unhappy about is that they won't give it to me until 4 days later.

betmunch

raise a complant about it then.

Theres no legal recourse for you as it would take longer than 4 days to conclude.

JimmyTheWig

They probably have the option of paying you by Chaps transfer.
Costs £35, iirc. Three guesses who they'd be asking to pay this...

ViolaLass

Where did the tea and cakes come into this?

lifegoeson2013

ViolaLass wrote: »

Where did the tea and cakes come into this?

I was being silly - they said they needed to keep the money for "etc" without telling me exactly what etc is so I assumed it

kingstreet

You are completing on Friday.

Have you paid to them the balance funds needed to complete the purchase monies, inc stamp duty (if any) and their fees or have you paid only the deposit?

There is a CML Handbook requirement for the solicitor to have cleared funds in hand to cover all the costs in advance of completion. As it's now the day before, they would want to ensure everything is in hand by today at the latest.

Did the solicitor's draft completion statement take the cashback and val fee refund into account, reducing the amount you need to pay or have you paid it all and the val fee and cashback are in excess and would be payable to you?

amnblog

The solicitor has not put the mortgage in place yet.


I cant see that they would be in a position to advance any funds to you that form part of that deal when the deal has not yet happened.

lifegoeson2013

kingstreet wrote: »

You are completing on Friday.

Have you paid to them the balance funds needed to complete the purchase monies, inc stamp duty (if any) and their fees or have you paid only the deposit?

There is a CML Handbook requirement for the solicitor to have cleared funds in hand to cover all the costs in advance of completion. As it's now the day before, they would want to ensure everything is in hand by today at the latest.

Did the solicitor's draft completion statement take the cashback and val fee refund into account, reducing the amount you need to pay or have you paid it all and the val fee and cashback are in excess and would be payable to you?

Hi, yes, supposed to complete today, Friday.
I paid ALL the sums required on Tuesday morning and I know it was in their account by end of day Tuesday as it was a CHAPS payment. The lender paid in the mortgage funds to them on Wednesday morning.
This is Friday morning and I've not heard anything from them since Wednesday morning so I've been paying for a house since Wednesday (via the mortgage) yet I don't have the keys.
Supposed to settle today but feel very nervous about the whole thing as they suggested that completion "might" not happen for whatever reason that they cannot anticipate.
It's been an awful experience, they've not kept me updated at all and their admin skills are shockingly bad

lifegoeson2013

amnblog wrote: »

The solicitor has not put the mortgage in place yet.


I cant see that they would be in a position to advance any funds to you that form part of that deal when the deal has not yet happened.

yes, that was explained and I understood it then. However, the fact that they told me they are keeping this money (cashback and valuation refund) until next Thursday to cover "incidental fees and government charges" would make anyone ask the question - what if it wasn't a cashback mortgage and valuation refund ?