Seller's Solictors refusing to agree retention as a policy

[flowjoh]

I'm in the late stages of a potential property purchase. The last point to agree is a £250 retention for service charge on the block, which my solicitor has explained is in case the actual service charge for the year comes in above the estimated charge.

Now the seller's solicitor is refusing to keep this retention because "As a firm, we do not agree retentions".

I was under the impression that keeping retentions was standard practice. Have I misunderstood?

Then say that if they can't accept a retention, you'll accept that amount taken off the purchase price!

That's the weirdest thing I have heard in a while. I agree with PP's response. Is it an actual solicitor firm or some online conveyancing firm?

@GU24Mum

Then say that if they can't accept a retention, you'll accept that amount taken off the purchase price!

Does that involve extra paperwork and delays? I was hoping to exchange today and if it does delay things then it's probably an option I'd rather avoid. Is there another way to achieve the same outcome?

@Dinosauraddict

That's the weirdest thing I have heard in a while. I agree with PP's response. Is it an actual solicitor firm or some online conveyancing firm?

It's an actual solicitor firm (not an online conveyancing firm).

So they want you to be £250 worse off?

No thank you. Maybe they’d like to deduct it from their fees so the Vendor can leave it on the kitchen counter in an envelope for you?

OK, so clearly I’m joking, but it does sound pretty ridiculous.

This happened in my last purchase- I just accepted the risk and, in the end, nothing extra needed to be paid. £250 is a very small amount in the scheme of a property purchase!

We would have had to pay solicitor £400 pounds just to hold a £200 retention when selling our flat, which may not have been needed. Probably the same situation for your seller.

Very odd.

I work for one of those online conveyancers. We still request and agree service charge retentions.

Personally I would not be worried about a £250 charge. £2500, may be, but not this.
But yes it's standard.

In the end my solicitor agreed to hold the retention instead and the sellers were happy with that. My solicitor seems pretty baffled by the sellers solicitor not accepting to hold the retention - said its absolutely standard practice and he's never encountered this before. Anyways, seems like that hiccup is solved now thankfully.

sold recently, my solicitor retained 250+50 fees for the service charges at the request of my buyer's solicitor.

once the yearly account are done and nothing to pay, I will get the money back.