This relates to an Income Support appeal, I'm too weary to go into too much detail... Lets just say that deprivation of capital is at issue.

Is it possible that during a house sale the deposit would be paid in July, the mortgage provider having paid out the majority of the money for the sale in the preceding April?

My mortgage didn't work that way and niether did anyone else's in the office but in these arcane areas you never can tell.

The hearing's on Wednesday so if anyone can conceive of a credible explanation quickly I'd be grateful (I think. A free afternoon on Wednesay would be nice instead).

Had a colleague once who paid her deposit by credit card, then emptied her (high interest) account some time later to pay it off. It worked out that the CC interest was less than the penalty if she'd withdrawn the savings earlier to pay the deposit with.

Don't suppose this fits your facts...

Only thing I can think of is if there were restrictions on the mortgage following a survey, ie. the roof needs replacing on the property, we will release 90% of the mortgage on completion and the remaining 10% when the roof has been repaired.

just thought of something else! I bought a house that needed work, I got the vendor to agree to pay for the work and it was by way of a reduction in the deposit, then I paid the builder when the work was done!

regards

On a house sale the deposit is (or certainly ought to be) paid on exchange of contracts. The mortgage is paid out later - on completion of the sale. You say the majority of the mortgage was paid out in April - when was the rest paid out, and why was it not all paid together? - perhaps because of some money being held back awaiting work to be done, as suggested above.

However, I cannot see how the deposit can come to be paid after the majority of the mortgage. I do not see how or why the mortgage lender would pay out before completion (if they did, they would be paying out on a property their borrower did not own!) so the deposit would then be being paid after completion of the sale.

You need the sale contract and documentary evidence of all the payments and their dates to substantiate what you are apparently being told.

agree with Derek. may wel be worth asking the conveyancing solicitor (with client's permission....) for the sequence of events - with proof!

i can only think of a mortgage retention situation, as others have pointed out - relevant amounts retained by lender pending satisfactory completion of specified works, then they produce the rest.

Think you're being told a very odd story here, and the legal chair won't believe a word of it - either that, or your client really has no idea of what has in fact happened and completely misunderstood the entire process.

there may be something yo havent' told us that would clarify it all...

"the legal chair won't believe a word of it "

was what i told the client in effortlessly weary tones, I just thought I'd fish in case someone might be able to suggest something credible.

This is a classic last minute job, and not, might I say, on my part; wool pulling efforts seem to have failed at the last hurdle and time's very nearly run out. Oh well, that free Wednesday afternoon looks welcoming.

On a different note, I reckon, as in a canal related forum I frequent, that this site needs a virtual pub, closed to public eyes, where we can whinge vocifercously and tell lurid jokes.

Shaun!

It does seem a little odd however there are two possibilities:

1. Lenders advanced the mortgage funds early in return for a solicitors undertaking to hold the funds in the solicitor's client account, only apply them to the purchase and to ensure that hte relavent charge was created on the property on completion. This might have happened for example if the client had no other way of fuding the deposit or if it was anticipated that exchange and completion were expected to happen either very quickly or even on the same day, perhaps there was some subsequent last minute delay.

2. Lenders made an unsecured advance prior to the mortgage.

Should be easy enough for the conveyancing solicitors to be able to confirm the order of events

Cheers all but client, on being presented with the incredibility of their overall account has withdrawn.