MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
The law is probably different south of the border.
My flat has a factoring company looking after the block and they asked for a £150 "float". Which i think i understand and have no real problem with.
Question is when i come to sell (hopefully soon) when i get teh £150 back should i expect interest? As this has effectively been used as a deposit against works carried out.
No you wont get interest, the deposits should be held in an interest free account otherwise it gives the factors a world of tax and client money issues.
ROFL. From land agents ? Mine keeping bumping the day they pay me the rent back and back yet the day the tenant pays remains the same. Will ask them for interest that could be fun...
And the "float" will notionally be used from time to time, so it's not really the same £150 you gave them (one could argue)
Interest on £150? Over what sort of period are we talking?
So what interest would you get in an instant access a/c? 3% at best? So £4.50 lost assuming the cash sat unused in the factor's a/c all year.
In the big picture of house expenses it isn't worth worrying about.
Or do you want the factor to add interest to the bills instead if he pays them up front?