Letter of Guarantee Fees Who Pays?

[Limastalled]

My Soloicitor has told me that I will have to repay my developer for all the Letter of Guarantee fees they have paid to their bank.

She states as below:

A Letter of Guarantee must be obtained when a Property is purchased by Way of a Bank Loan.

The Letter of Guarantee Fees are paid annually until the Loan is paid off or Title Deeds are transferred..

The Contract that you entered into when you purchased the Property provides that the Cost of any Letter of Guarantee shall be borne by the Purchaser

Even if this was not stated in the Contract, the Purchaser must always reimburse the Vendor for the Letter of Guarantee Fees and any other Payments that have been made on behalf of the Purchaser when the Final Statement of Account is settled.

Until the Final Statement of Account is settled in full the Vendor will not transfer the Title Deeds.

Is this correct will I have to repay the developer?

[Nigel Howarth]

The Contract that you entered into when you purchased the Property provides that the Cost of any Letter of Guarantee shall be borne by the Purchaser

I'm afraid the answer to your question is yes - it's written into your contract.

Regards,