Anyone else had their surplus funds withheld for months? Need advice

notappy58

Hi all,

I’m posting because I’m at the end of my patience and want to know if anyone else has been through this — and how you got it resolved.

My mortgage company has been holding on to my surplus funds from the sale of my repossessed property for six months now. We’re talking £85,854, not a small amount, and I’ve been chasing constantly.

Every time I ask for an update, I get the same vague responses:

• “We’re still investigating a third‑party claim”
• “We’re waiting for our solicitors”
• “We’ll update you soon”

But no evidence, no documents, no progress, and no explanation for why this is taking half a year.

I’ve already:

• Raised a formal complaint
• Escalated to the Financial Ombudsman
• Sent a Letter Before Action
• Started the court claim process
• Asked repeatedly for proof of any alleged third‑party claim

Still nothing. Just silence and delays.

At this point I’m wondering:

• Has anyone else had their surplus funds withheld for this long?
• Is this becoming a common issue with lenders/solicitors?
• How long did it take before you finally got paid?
• Did anything specific trigger movement?

I’m not asking for legal advice — just real experiences from people who’ve been through this. It’s incredibly stressful having this amount of money withheld for no good reason, and I’d appreciate hearing from others who’ve dealt with similar.

Thanks in advance.

silvercar

Email the CEO of the lender is another avenue to try.

What did the ombudsman say?

ACG

What did they say in their final response to the complaint?

What has the financial ombudsman said?

MattMattMattUK

Were there any other debts secured against the property, did you have any CCJs etc?

user1977

If they said they were "investigating a third‑party claim" I'd assume there has in fact been a third party claim and they haven't just fabricated it as an excuse.