Buying a repossession - weird clause in contract

neilmk

I think my biggest worry in all this is signing the contracts, letting our solicitors exchange and then for some reason our mortgage lendor turning round and saying that they will not release the funds.

Although they have been written to informing them of the situation with the deeds, at present they have not replied so im reluctant to return signed contracts to the solicitor for safe keeping just in case our mortgage lendor does not approve. I would rather wait until they have in writing from our mortgage lendor that everything is approved before we hand over signed contracts. Our solicitor has said that they will not exchange the contracts until this information is confirmed but still, im gonna hold off for my own peace of mind.

sdf368

This is interesting..

Evee2000

MegS wrote: »

HIPs are not required to include planning permissions etc only local authority search and drainage search. When our clients have bought repo's it is usual that a lot of information is missing and that the solicitors acting for the lender will not pay to provide any such information. The lenders are usually of the opinion that if you want the property then you do all the extras as they don't care whether the property is sold now or later in auction. We have also had the Transfer clause before. Something new is the inspecting of the property after completion. Can't help you there I'm afraid, may be worth querying that one. As it is only two days (I presume you mean in the same week for reconnection of services) between exchange deadline and reconnection then you may be able to delay things but be prepared for the property to be pulled if you do decide to brazen it out. Depends how hard nosed the solicitors are, I'm sure the lender would be reasonable as what you are paying is undoubtedly more than they are probably going to get at auction. As I said depends on the solicitors.

Sorry, this is incorrect. A HIP must provide details of planning permission, building regulations and highways information - some Local Authorities will refuse to provide this information without an additional charge (nevertheless it is still a requirement to include it in the HIP). Along with a drainage and water search and official title documentation. If you know that your HIP is missing this information, the HIP is not fully compliant. Many Local Authorities have online portals where a check of planning consents can be made, as a belt and braces approach to confirming your HIP is correct.

Premier_2

neilmk wrote: »

Thanks Jenner, our problem is the 28 day deadline is up on Wednesday, and the contract states across the top in bold that NO AMENDMENTS WILL BE AGREED. So it seems we accept what they are saying or walk away...

This is the norm when a lender is selling the property. Any amendments are extremely difficult to get agreed ... but there is nothing stopping your solicitor trying.

After all, if the terms of the sale are so onerous as not to be acceptable to anyone then they'll have to amend them if they want to sell. Some people have already stated they wouldn't be happy with such terms and I don't think I would be either.

Follow the advice of your solicitor. If you're unhappy with the terms and your solicitor advises you not to agree to them, then walk away from the deal - you'll find another property you like without such onerous terms attached.

Catti

Although the Local Search gives information about planning matters, it will not contain actual copies of any consents.

Evee2000

Catti wrote: »

Although the Local Search gives information about planning matters, it will not contain actual copies of any consents.

Yes, thats correct. All that is needed is the planning reference and a description of the work requested/undertaken.

neilmk

Hi, by way of update our solicitor is requesting new copies of the planning permission, the warranty from NHBC and has submitted local searches.
Does this mean that if we come to resell the house in the future the HIP pack would then be complete?

mouseymousey99

I've heard of this once before - in that case someone's ashes had been scattered in the garden. I've always beleived the dead can't hurt you - only the living!!

Evee2000

neilmk wrote: »

Hi, by way of update our solicitor is requesting new copies of the planning permission, the warranty from NHBC and has submitted local searches.
Does this mean that if we come to resell the house in the future the HIP pack would then be complete?

It would depend on when you remarketed the property. Whilst the HIP is valid for the life of the existing marketing of the property, if the property is removed from the market, the HIP will only be valid for 1 year. If the property is remarketed within the year, the HIP will again no longer be timebound. The searches on the other hand may no longer be accepted by your buyers lender if they are over 6 months old - however, you, as the vendor, will have complied with the HIP regulations and it will be up to the buyer to update the searches.

Charmagne

Hi

How did things go with this? We are also buying a repossession and my solicitor called today to say that there is an unusual clause in the contract about accessing the property after completion. She has gone back to ask for it to be removed as she considers it odd. Did you ever find out why your similar clause was required?