chelsea

[katemax]

can anyone help?we are in process of selling house and going into rented to clear debts,the chelsea building society are going to charge us £2900 because we are finishing before the 3 year period is up.the period is up december so for the sake of settling 3 months early we are bieng charged £2900,this seems like robbery and over excessive at the least!is it lawful?is there anything we can do,how can they justify such a charge?any help would be gratefully recieved.we would wait till dec but we may loose our buyer and we need the money asap:eek:

[zootscoot]

Redemption fees are a penalty for breach of contract so therefore theoretically unenforceable. As of yet this is a relatively untested area, although, several people have started the process recently.

 

It may be worth asing your solictor to negotiate your way out of paying. Your difficulty is that if you refuse to pay this may hold up the sale. Alternatively, you may have to pay up and then recover later.

[craigamc]

Hi

 

I am new to this forum and felt the need to respond to your post.

 

I obtained a new mortgage which completed two weeks ago and I too was charged an amount of around £2,900 as a redemption penatly. I only had 6 months left on the tie in period, but needed to move due to there unhelpfulness in my circumstances. I also had numerous charges for arrears and late payments, which I feel I need to try and reclaim after reading articles on this forum.

 

I certainly will try and reclaim the £2,900 redemption fee.

 

Ta

Craig

[chelsea]

After reading this site, I have also decided to get a refund of £12,000 paid to a bank when we changed mortgages, as a redemption charge. I have issues them with the prelim letter requesting a refund on 8th Aug, and will keep you informed.

 

Chelsea

[Claudie]

Just bumping this up to see if anyone has been sucessful in reclaiming the penalty?

 

We are emigrating next month and are just in the process of selling our home - I am writing to Chelsea but was looking to see if anyone has been lucky so far. I am feeling slightly nervous as I don't want to hold up our sale at all.

 

Advice welcome

[craigamc]

I'm still trying!

 

You?