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Failed Completion - At what point does interest start being charged?
pimento
Posts: 6,243 Forumite
As per the title, asking for a friend.
Exchanged contracts on November 1st, should have completed yesterday but didn't. Solicitor is holding 10% of the purchase price.
Solicitor says they're going to 'try to complete today' but no news so far.
At what point can my friend start expecting to be paid interest?
Exchanged contracts on November 1st, should have completed yesterday but didn't. Solicitor is holding 10% of the purchase price.
Solicitor says they're going to 'try to complete today' but no news so far.
At what point can my friend start expecting to be paid interest?
"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
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Comments
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What was agreed in the contract? Mine gave a daily rate.0
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I think the rate is 4% above base but would that run from midnight last night?"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair0
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4% above baserate per annum, not per day0
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Interest starts accruing as soon as completion is late. But given how low interest rates are at the moment, I wouldn't get too excited about one day's interest here or there (e.g. 4% above base on £250,000 = £30.82 a day).0
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Interest starts accruing as soon as completion is late. But given how low interest rates are at the moment, I wouldn't get too excited about one day's interest here or there (e.g. 4% above base on £250,000 = £30.82 a day).
Yes, I know it's peanuts. I assume my friend can also claim for any expenses on top.
I'm hoping they manage it today because although not inconvenient in this case, it would be a very different story if there was a chain and removal vans involved. As it is it's an investor buying and no chain. Fingers crossed.."If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair0 -
Isn't the interest just on the held 10% deposit ?Interest starts accruing as soon as completion is late. But given how low interest rates are at the moment, I wouldn't get too excited about one day's interest here or there (e.g. 4% above base on £250,000 = £30.82 a day).
On £500000, the 10% would be £50000, so interest at 4.5% only about £6/day.0 -
It is calculated on the balance outstanding, i.e. the sale price minus the deposit already paid.
Unless otherwise specified the rate in the Standard Conditions of Sale is currently 4.25%.
The buyer can claim for his actual loss if it exceeds that amount.0 -
Is there a cut-off time? If completion should have been yesterday does the clock start ticking at the time the solicitors closes or at midnight?
Still no word, BTW."If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair0 -
It is all daily, not to the second!0
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