Response to Full and Final Settlement

Marne,

I don't know what you put in your settlement letter but you may find the following solicitor's advice of interest,.....

We need to make a distinction between a letter which is negotiating a full and final and a letter confirming the terms of a full and final which has been agreed.

After an agreement has been reached but before any money is handed over, I usually suggest that a letter is written along theses lines:

"Further to our agreement on full and final settlement of my mortgage shortfall liabilities for the sum of £xxx (+ spell out in words), I am now ready to pay over the money on an 'ex gratia' basis. Also make sure any letter has "Without prejudice" on it.

Before I do this I would be grateful if you could confirm in writing that the sum is acepted in full and final settlement and full satisfaction of all liabilities under and relating to the mortgage, however arising. Please also confirm that you will make an entry on my credit reference file and the mortgage possession register to the effect that the debt has been satisfied, and that you will forward to me a certificate of satisfaction following receipt of the agreed payment".

Mark.

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