Please note that if you fail to complete, you will be liable to pay interest at 4.25% (correct as at 13.03.20) per annum on the outstanding balance plus all of the other party’s losses. By way of example, on a £500k transaction where 10% was paid, this would be £52.40 per day interest plus losses which can easily and quickly run to several thousands of pounds. You can also lose your 10% deposit 2 weeks after a failed completion (based on usual terms – check your contract which may be different). The effects of the coronavirus will not be a valid reason not to complete and you could still be sued, but all solicitors would hope to appeal to the other party’s human side in limiting losses. It is always vital to let your solicitor know as soon as you know that you will have problems completing as negotiating with the other party is much easier a few days before completion as opposed to when they are sitting in their removals van having packed up their whole lives.
Finally, it is an unfortunate truth that fraudsters may take this opportunity to take advantage of the situation to commit fraud. Therefore, whatever happens with the coronavirus, you should be reassured that we would never change our bank details and would never ask you to send funds to another party in the chain or otherwise. If you are asked to do this, it is a scam and you should not send funds and should report this to us and Action Fraud.
This blog is not to be taken as legal advice and you should contact us with full details of your own circumstances so we can advise you.
Specialises in: Residential Property
If you require any further information regarding the impacts of Coronavirus, or any other matter related to Residential Property purchases and sales, please contact Angela Neale in the Residential Property department at Comptons Solicitors LLP. (firstname.lastname@example.org / 020 7482 9506).