They have just said they are keeping the money as they rented the property to us but we have no tenancy agreement and no documentation. We gave them the money to hold the property until we got the mortgage and that money was to be deducted from the property value
Did you move in?
How much money? Who is arranging the mortgage?
Have you got a mortgage now?
No we never moved in as we didn't want to just in case the mortgage was not approved (which it hasn't been). They transferred the council tax into our name though and we have been paying that and any bills (elec and gas etc) even though we were not in the property. We gave them £32k. My husband has the mortgage company information, I will find out for you now. And no we did not get the mortgage hence why we would like the money back. They are saying we won't get it back as we essentially rented from them, although we have no tenancy agreement and never lived in it.
You are entitled, on these facts, to the fullamount of money back because there is no contract to you to buy the house andthis is merely a deposit.
Under the Law of Property Act 1925, there is novalid contract and therefore you are entitled to full refund.
However, being entitled to it and getting it aretwo different things. If you paid it to the builder and the builder is alimited company and the limited company goes down the tubes, then you arehanging out to dry for £32,000.
I assume that your Solicitor had no indication thatyou parted with this money.
If they won't pay up, you are simply faced withissuing legal against the company. You then have to enforce against it
That really is all there is to it. You are in avery precarious situation if the company has no assets.
A mortgage should never take more than 6 to 8 weeksto arrange in any event.
Can I help further?
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Thank you so much for that answer and your help so far. I have a couple of questions more if possible too please? Would you say it was worth our while to find a solicitor to deal with this and that it would not take more than the money we paid to resolve? Also, my husband just said to me he transferred the money from his account into the builder's account (which is a well established company with good assets), if they are saying we have rented from them should they have declared that money to a landlord deposit scheme or something? Thanks
Sorry, this slipped off my radar.
There is no deposit scheme for this. There is forlandlords holding tenants deposits, but not for a purchase deposit. It wouldhave been good practice to place it on deposit in a separate account nominatedas a trust account for you. However, it is not a legal requirement.
I think it absolutely essential that you find a solicitorbecause they may just take more note of the solicitor. If you'd had thesolicitor before he would have advised you not to part with this money underany circumstances.
I do hope that you get sorted.