Apportionment?

FtbEmz

Morning everyone. Just had an email from my solicitor and not sure what it means:

I am just waiting for statement from the seller’s solicitors showing apportionments to enable me to prepare your completion statement.  I have chased this morning.

We’re due to complete this Thursday and are waiting for the completion statement so we can send the deposit. 

What does apportionments mean?

user1977

Splitting the service charge (or other periodic payments) between you and the seller as at the completion date.

GDB2222

I would send the deposit now. You don’t want to miss completion because the deposit is stuck in the banking system.

Apportionment most likely relates to service charges.

GDB2222

By the way, did you not pay a deposit on exchange?

user1977

GDB2222 said:

I would send the deposit now. You don’t want to miss completion because the deposit is stuck in the banking system.

I think the point is that they don't know the required amount until the solicitor finalises the statement.

Tiglet2

There are service charges on the property.  You need to pay service charges from Thursday and your seller needs to pay service charges up to Thursday.  If the seller had already paid service charges in advance, then the solicitors will adjust the amount you owe by apportionment.  So, if the seller had paid service charges up to the end of June, their solicitor will work out a daily rate from Thursday to the end of June, which will be added to the service charge statement, so that you will be reimbursing the seller for the days that the seller has paid for, but is no longer the owner of the property.  

In terms of the deposit due, it should be 10% of the purchase price on exchange, or all fees due by completion.  You can always send over what you think it should be and the solicitor can confirm to you if there are still monies owed, once they have the service charge statement from the sellers' solicitor.

FtbEmz

Thanks everyone. I don’t know their bank details so can’t send any money yet but it will done via chaps in the bank. Thanks 

Tiglet2

FtbEmz said:

Thanks everyone. I don’t know their bank details so can’t send any money yet but it will done via chaps in the bank. Thanks 

Their bank details should have been sent to you with their original letter of engagement.  The bank details would not have changed since then, but you can telephone to check and then send £1 to confirm that they received the money.

FtbEmz

Tiglet2 said:

FtbEmz said:

Thanks everyone. I don’t know their bank details so can’t send any money yet but it will done via chaps in the bank. Thanks 

Their bank details should have been sent to you with their original letter of engagement.  The bank details would not have changed since then, but you can telephone to check and then send £1 to confirm that they received the money.

Thanks. I’m not sure of the exact amount yet.

GDB2222

FtbEmz said:

Tiglet2 said:

FtbEmz said:

Thanks everyone. I don’t know their bank details so can’t send any money yet but it will done via chaps in the bank. Thanks 

Their bank details should have been sent to you with their original letter of engagement.  The bank details would not have changed since then, but you can telephone to check and then send £1 to confirm that they received the money.

Thanks. I’m not sure of the exact amount yet.

I don't see why that matters? I would send the bulk of the money now, to make sure the solicitor has it in time. You can top it up with a Faster Payment nearer Thursday. Or, just overpay a bit now, if you have the cash?

I'm waiting, otherwise, for Wednesday's post. "The bank cannot action my CHAPS payment, because of XXX. So stressed. And, it's not my fault!"

user1977

GDB2222 said:

FtbEmz said:

Tiglet2 said:

FtbEmz said:

Thanks everyone. I don’t know their bank details so can’t send any money yet but it will done via chaps in the bank. Thanks 

Their bank details should have been sent to you with their original letter of engagement.  The bank details would not have changed since then, but you can telephone to check and then send £1 to confirm that they received the money.

Thanks. I’m not sure of the exact amount yet.

I don't see why that matters? I would send the bulk of the money now, to make sure the solicitor has it in time. You can top it up with a Faster Payment nearer Thursday. Or, just overpay a bit now, if you have the cash?

Because you're just doubling the amount of admin involved? The solicitors need all of the necessary funds before they'll complete, no point sending it in two instalments.