• Late Redemption Payment By Solicitor

    By Guest on 15th Jun 2015

    Selling my propoerty with a date of entry for the new buyers on 05/06/15. On that date, i was informed that i had to wait a week to collect my cheque for the sale. My mortgage redemption date was 05/06/15 however this was not settled by my solicitor until the sale cheque had cleared. THis resulted in ME being charged 7 days interest charge. Is this correct and why should i be paying this charge?
    Any help would be gratefully received

  • 3 Answers

    By Guest on 15/06/2015

    If the property you sold was in England or Wales then your solicitors should have insisted on having cleared funds from the buyer's solicitors on completion and should not have completed until they had cleared funds. It is normal practice and has been so for decades for the buyer's solicitors to transfer the funds by CHAPS transfer (which is a same day electronic transfer) to the seller's solicitors. The mortgage is then repaid by the same method on the same day. You should ask for a full explanation as to why completion was allowed to take place without your solicitors being in receipt of cleared funds and you should ask for compensation equal to the extra interest. This assumes of course that you had not been made aware of the planned arrangement in advance and given your informed consent.

  • By Guest on 15/06/2015

    The property was sold in Scotland. Does this change the outcome of the above

  • By Guest on 15/06/2015

    Possibly. This site is about English law and Scotland has its own laws and procedures.

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