Am I entitled to refund?

CMB93

We were in the process of remortgaging from Halifax to Barclays to get a better rate. When we bought our house, we used the Scottish Help to Buy equity loan, because of this, when remortgaging we needed to get all parties signature on a Ranking Agreement to say that Barclays was first, and the Scottish Ministers second to get their funds back. (note - Scottish HTB rules are different to England/Wales)

Due to COVID-19, the Scottish Ministers lawyers office closed at the start of this week, and they have no way to get the letter to sign. This is all understandable given the current climate, so we're going to take a new deal with our current lender.  

However, we paid a fee last week of £240 (via Barclay's conveyancer) payable to the Scottish Ministers lawyers to sign and release the ranking agreement. Now that they are unable to proceed, and have taken no action, I believe this fee should be refunded. However, we're getting told it might not be possible because 'conveyancer have had to phone them, so we've technically used their time to clarify that they can't action for the foreseeable future'.

We were told that the fee was for signing and releasing the agreement, and I have this in writing. 

Am I being unreasonable, or am I entitled to a refund of the £240?

davidmcn

You're being unreasonable. It's you who has decided to abandon the original transaction, and if you hadn't then you wouldn't have had to pay anything extra.

CMB93

davidmcn said:

You're being unreasonable. It's you who has decided to abandon the original transaction, and if you hadn't then you wouldn't have had to pay anything extra.

I think you have misunderstood. The fee is not because we've 'abandoned' the transaction. It was for them to sign and release the ranking agreement.

They are unable to do this at the Scottish Ministers and by the time they can, our fixed rate will have expired and we'd be on an extortionate variable rate. 

The Scottish Ministers have taken no action whatsoever, I feel like we're paying them for doing nothing. 

davidmcn

CMB93 said:

davidmcn said:

You're being unreasonable. It's you who has decided to abandon the original transaction, and if you hadn't then you wouldn't have had to pay anything extra.

I think you have misunderstood. The fee is not because we've 'abandoned' the transaction. It was for them to sign and release the ranking agreement.

They are unable to do this at the Scottish Ministers and by the time they can, our fixed rate will have expired and we'd be on an extortionate variable rate. 

Yes, I understand that's why you've chosen not to proceed, but nevertheless you take on the risk of that happening when you undertake to pay third parties' costs such as this.

Thrugelmir

CMB93 said:

davidmcn said:

You're being unreasonable. It's you who has decided to abandon the original transaction, and if you hadn't then you wouldn't have had to pay anything extra.

They are unable to do this at the Scottish Ministers and by the time they can, our fixed rate will have expired and we'd be on an extortionate variable rate. 

Stay with Halifax and a lock in to a fixed rate now? 
As you are unlikely to get movement on this anytime soon. 

CMB93

Thanks, Thrugelmir. We're getting a new deal with Halifax. 
This post was more around the fee we paid, but will not be going ahead with due to the office closure. 

dunstonh

Am I being unreasonable, or am I entitled to a refund of the £240?

What do their cancellation terms state?  When you enter into a contract, it should state what happens if either side wishes to cancel the contract.     Normally, there will be a cost.   As you created work, you would expect to pay something.  So, a 100% refund is unlikely.  However, it really boils down to your contract terms.