Urgent advice on unfair redemption charges

Ste2412

Hello - I am after some urgent advice please...

(This is my first post, so please bear with me whilst I get into my stride...)

I am just in the process of selling my house (contracts exchanged and a completion date agreed for next week).

This is a sale that has been dragging on with the same buyer since the start of the year....

I had problems with the building society delaying the issuance of the redemption statement and have finally got this issued, but was absolutely appalled at the figures.


The building society redemption figure is around £80,000 but there is an additional figure of nearly £6,000 being applied by a solicitor who the building society had invoked due to arrears with the mortgage (approx £2,000 arrears in total).


This appointment was despite the fact that I spoke to the building society on several occasions to inform them that we had an impending sale, and they agreed to hold the account until the date of our original completion date (11th April).

The completion date then slipped by approx 3 weeks because of problems with another buyer in the chain, so that contracts were actually exchanged on the same day when completion should have gone ahead (11th April).

In addition to my numerous phone calls, it was also clear to the building society that this was a 'serious' sale offer, because our conveyancer made requests for redemption statements. (Firstly, based on the early April completion date, and then based on the start of May completion date)


I think that the redemption figure of ~ £80,000 is about right, but cannot believe that solicitors fees of nearly £6,000 can be justified or are right given that we received a single letter from them informing that they were appointed as LPA receiver (this letter was dated 16th April - 5 days AFTER our conveyancer had requested a redemption statement from the building society)


My most urgent question is this:
I am desperate for the property sale to go through but am damned if I am handing over an additional £6,000 of my hard-earned money in what I can only describe as ludicrously inflated and unspecified charges.

Can I rightfully instruct our conveyancer, that on the completion of the sale of the property, to pay the ~ £80,000 redemption figure to the building society, but not the £6,000 'claimed' by the 'appointed LPA' because I am certainly going to dispute these charges, but don't wish to have to do this from the position of being £6,000 down.

Thanks for your help,

Steve

Dan_Collins_2

I dont think he can complete and not pay it just on your say so. If it was a seperate bill then yes. They hold a charge on your property and they can stop the sale if you dont pay them.

I know this is urgent but you need to talk to the lender again, then talk to the FOS and CAB for advice. Even the Law Society, although the Law Society will only act if the solicitor acting out side of their code, then they may give them a slapped rist, if that!

Ste2412

Thanks for your quick reply Dan - appreciate it.
A little extra (hopefully relevant) info...

The information that I have received was issued to my conveyancer from the solicitor who was appointed by the building society.
The actual building society's redemption statement shows the breakdown of the ~ £80,000 with the usual breakdown of figures.

There is an additional page attached to this that states that there are nearly £6,000 of solicitor's and 'LPA reciever' costs.

From what you are saying, they have the right to print money, because any figure that they make up would be a charge on the property and could prevent the completion of the sale.

Forgive my ignorance, but what could possibly justify £6,000 of charges when they have issued me a single letter one week ago, and this was after the notification of contract exchange was made to my building society?

UK007BullDog

You can ask them what the £6K are and have it broken down for you, however your solicitor needs to pay that whole amount to the Lender or you will not be selling.

So you have no choice really.

But do go and speak to the institutions listed in the previous post for help.

Ste2412

UK007BullDog wrote: »

So you have no choice really.

Thanks for your reply Bulldog,

Seems like 'they' have you over a barrel in this situation.

I have already spoken to the FOS, who advised that they 'cannot offer advice' and will only deal with a complaint after it has been pursued with the lenderand remains unresolved (up to 8 weeks allowed for the lender to respond).

Mmmmmm, this is going to take some serious thought....

Don't worry, I don't plan to go down without fighting... I'll let everyone know if I learn any special moves along the way.

[ Money Saving Ninja, 9th kyu]