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  • FIRST POST
    • R.o
    • By R.o 10th Jan 18, 3:05 PM
    • 16Posts
    • 0Thanks
    R.o
    New Build Solicitor Advice??
    • #1
    • 10th Jan 18, 3:05 PM
    New Build Solicitor Advice?? 10th Jan 18 at 3:05 PM
    Good afternoon all,

    Anyone come across the below issue with exchange on a new build?

    Reserved new build with estimated completion of FEB/MAR/APR. Solicitor has just informed me that they have exchanged BUT with estimated completion date of 31st May. Well my mortgage offer runs out beginning of May. Spoke to my broker who confirmed the lender will extend offer up to a month and beyond that I will have to re-apply again (offer was issued just before rates went up)

    Just wondering if anyone's solicitor contacted them prior to exchanging? Just looking at worse case scenario as it sounds like a big risk or is this normal?

    Thanks in advance.
Page 1
    • YHM
    • By YHM 10th Jan 18, 3:09 PM
    • 439 Posts
    • 155 Thanks
    YHM
    • #2
    • 10th Jan 18, 3:09 PM
    • #2
    • 10th Jan 18, 3:09 PM
    When did you apply for the mortgage?

    Why has your solicitor exchanged when the offer document, that they will have been sent, expires before completion?
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • R.o
    • By R.o 10th Jan 18, 3:15 PM
    • 16 Posts
    • 0 Thanks
    R.o
    • #3
    • 10th Jan 18, 3:15 PM
    • #3
    • 10th Jan 18, 3:15 PM
    1, Applied middle of October,


    2, Have no clue, as far as we were aware the latest date of April 18 for which offer was valid. Is this concerning to you?


    I am a FTB
    • YHM
    • By YHM 10th Jan 18, 3:34 PM
    • 439 Posts
    • 155 Thanks
    YHM
    • #4
    • 10th Jan 18, 3:34 PM
    • #4
    • 10th Jan 18, 3:34 PM
    I would expect the offer to have lasted for 6 months, and yes it potentially will have an extension on it, especially for newbuild.

    My concern would be the solicitors not flagging the expiry of the offer document up with you, before exchanging contracts.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • kingstreet
    • By kingstreet 10th Jan 18, 3:39 PM
    • 32,620 Posts
    • 17,560 Thanks
    kingstreet
    • #5
    • 10th Jan 18, 3:39 PM
    • #5
    • 10th Jan 18, 3:39 PM
    It's unusual for a solicitor to exchange contracts where he doesn't have a mortgage offer valid for the anticipated legal completion date.

    The solicitor may feel he can trust the lender's extension policy.

    Is there any chance you could tell us the lender's name so we don't go all round the houses covering every eventuality?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • R.o
    • By R.o 10th Jan 18, 3:48 PM
    • 16 Posts
    • 0 Thanks
    R.o
    • #6
    • 10th Jan 18, 3:48 PM
    • #6
    • 10th Jan 18, 3:48 PM
    Thanks so far guys,


    Lender is NatWest, broker has already requested a months extension so I have until beginning of June to complete.


    Offer expires 5th May, in my solicitor's email they mention it could go past 31st. To be honest our transaction has been a complete nightmare and we are currently negotiating a refund on our legal fee's. We had no clue about new expected completion date.


    If I have to re-apply and say I was on the edge of affordability and the rates went up which they have....Am I correct in saying the bank wouldn't lend as much? not sure if it works like that.
    • kingstreet
    • By kingstreet 10th Jan 18, 4:02 PM
    • 32,620 Posts
    • 17,560 Thanks
    kingstreet
    • #7
    • 10th Jan 18, 4:02 PM
    • #7
    • 10th Jan 18, 4:02 PM
    Yes, NatWest permits one 30 day extension then a new application would be needed.

    Affordability doesn't necessarily change as rates change, but you may face a higher rate. Builders with whom we work would expect to face a bill at completion for increased mortgage costs/fees as a result of their inability to get the build completed on time.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • YHM
    • By YHM 10th Jan 18, 4:05 PM
    • 439 Posts
    • 155 Thanks
    YHM
    • #8
    • 10th Jan 18, 4:05 PM
    • #8
    • 10th Jan 18, 4:05 PM
    Solicitors aren't versed enough to understand which lender will extend offers and which won't.

    I'd be having words with them as to what they were playing at....
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • R.o
    • By R.o 10th Jan 18, 4:36 PM
    • 16 Posts
    • 0 Thanks
    R.o
    • #9
    • 10th Jan 18, 4:36 PM
    • #9
    • 10th Jan 18, 4:36 PM
    Thank you for all the reply's, appreciate it. Seemed concerning to me and looks like I was right.


    Anyone wish to add please feel free.
    • ValiantSon
    • By ValiantSon 10th Jan 18, 5:48 PM
    • 232 Posts
    • 217 Thanks
    ValiantSon
    Your solicitor should have asked for consent to exchange. They cannot just exchange contracts without your authorisation. Double check that they have actually exchanged, rather than said that a completion date of 31st May would be acceptable. If they have then it is time to make a formal complaint and pursue it with the relevant bodies. What your solicitor has done is grossly negligent and not acting in the best interest of their client.
    • R.o
    • By R.o 10th Jan 18, 6:10 PM
    • 16 Posts
    • 0 Thanks
    R.o
    I have now spoke to a manager who basically referred me to the review on title and advised me the date would of been on there. So I reviewed it and there is no date whatsoever, it only specifies that completion will be done within two weeks notice from the seller. As far as I was aware it was Feb/mar/Apr. I'm waiting back to hear if a long stop date has been put it but do they write that in to every contract? Or does it need to be requested to be put in?
    • R.o
    • By R.o 10th Jan 18, 6:15 PM
    • 16 Posts
    • 0 Thanks
    R.o
    They requested to exchange for which I authorised but I had no idea about the expired mortgage offer before completion.
    • ValiantSon
    • By ValiantSon 10th Jan 18, 7:16 PM
    • 232 Posts
    • 217 Thanks
    ValiantSon
    They requested to exchange for which I authorised but I had no idea about the expired mortgage offer before completion.
    Originally posted by R.o
    Ah, that does change things a little. If you authorised exchange then your solicitor hasn't done something overtly wrong in exchanging, but you should be aware of the completion date that is written on the contract that is exchanged as this is legally binding and is set at the point of exchange. When you authorised exchange you were authorising it with a specific completion date. Your solicitor should have advised you of this, but it will be harder to prove that they didn't. Nonetheless, you could still argue that the solicitor has not acted in your best interests by exchanging a contract with a completion date that is later than the expiry of your mortgage offer.

    I think you need to push this with your solicitor and seek further advice from professionals. You may have a case against the solicitor for their failure in the above regard, but you may not.

    Hope you manage to get this sorted.
    • Dolly123
    • By Dolly123 10th Jan 18, 11:13 PM
    • 113 Posts
    • 8 Thanks
    Dolly123
    Explain to your developer that your MO runs out and they may be to help by either giving you a reduced noticed period or switching the build program a bit so that your house gets priority and is finished earlier
    • R.o
    • By R.o 11th Jan 18, 9:18 AM
    • 16 Posts
    • 0 Thanks
    R.o
    Thanks all, just a quick update for anyone that happens to be in the same situation in the future. I have contacted the legal ombudsmen who have confirmed this is a case they would take on and investigate. I now have to raise a complaint with the solicitors first which I will be doing shortly.
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