• £6k Reserved

    By Guest on 23rd Jun 2016

    i recently sold a property for 140k with a 110k bridging loan on it , a redemption figure was obtained, and the sale went to completion , my solicitor retained £6k of the funds in case the buyers solicitors fail to release the charge from the land registry , ive never experienced this in previous sales , is this normal ?? it almost seems as though the solicitor has borrowed the money - surely not.

  • 1 Answers

    By Guest on 26/06/2016

    I'm sure the solicitor hasn't borrowed the money. The consequences of this sort of conduct breach would be fatal for the firm if they were exposed. Without knowing all of the details I couldn't comment as to why the retention was held however whilst it is unusual, it is certainly not unheard of for a retention to be held where there is some question mark over whether the lender's charge will be released. Incidentally I imagine it is the the bridging finance company's solicitor rather than the buyer's solicitor that will be removing the charge.

    The retention should be released to you in full once the charge has been removed at Land Registry.

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