12k non-refundable deposit for loft conversion...?

moneymark

Hello,

I'm planning on having a lloft conversion done for £60k.

The company I am planning to use are asking for a 20% deposit now upon signature of the contract which is non-refundable. Is this a standard amount, as £12k seems pretty steep to me?

Their references and reviews online on the whole look good and the company and it's financial accounts look to be in good order.

In the times we are living in when anything could happen with covid, cost of living crisis, recession, war etc I'm obviously a bit nervous about parting with such a large amount of money 4 months before they have scheduled it to start.

Would be good to know peoples thoughts.

Thanks in advance

comeandgo

No way, a non refundable deposit, no way.  

FreeBear

comeandgo said: No way, a non refundable deposit, no way.  

Assuming the company is managing the whole project from design to finish, there will be some fixed costs before builders are on site - Architect drawings, planning permission submissions, building control notification, possibly party wall surveyors - These would all be fixed costs which a deposit would reasonably cover depending on what point the project was cancelled.

I would want to see the small print of the contract and details of what monies would be non-refundable in the event of cancellation. But I wouldn't accept a £12K deposit as totally non-refundable unless it was in London..

comeandgo

FreeBear said:

comeandgo said: No way, a non refundable deposit, no way.  

Assuming the company is managing the whole project from design to finish, there will be some fixed costs before builders are on site - Architect drawings, planning permission submissions, building control notification, possibly party wall surveyors - These would all be fixed costs which a deposit would reasonably cover depending on what point the project was cancelled.

I would want to see the small print of the contract and details of what monies would be non-refundable in the event of cancellation. But I wouldn't accept a £12K deposit as totally non-refundable unless it was in London..

I do know about the pre build costs, I had assumed those would be paid for prior to building starting as and when these charges were applicable, not by a 20% non refundable deposit.  Non of the companies I deal with ask for deposits.  

moneymark

I am providing them with the plans I've already had drawn up and structural calculations and am just outside of London.

plumb1_2

I would ask for a clause to be put in the contract that if the builder doesn’t start on agreed date or before hand the the deposit would be refundable. Plus pay by CC