help needed split up between exchange and completion

annabelle81

Hi

me and my boyfriend were buying a house in Leeds, the problem is he lied about having a job, got fake payslips printed and spent the £8000 his parents gave him to buy the house which was to be used for deposit/stampduty. As far as I now know he is in quite a lot of debt (undeclared on mortgage application) and he has no job (or no income coming in his bank account).

he spoke to our solicitor and persuaded him to arrange a bridging loan for £8000 as he said the money would def. be with him by a certain day. The solicitor did this without informing me. This meant we exchanged without having the money in place

I have sorted things out (as far as I can) having paid the money owed; moved in (without boyfriend) and can transfer the property into my sole name quite easily.

I have a few questions about the mortgage/

Should i not say anything until we complete the sale later this month or tell mortgage company and ownhome (who we got an equity loan off) or should i keep quiet until we complete (as I understand it they could pull the mortgage leaving me with a huge liability)

Will they let me keep the same rate (.99 above base tracker) if I get my parents to guarantee it?

Does this happen often?

No one seems to know what may happen- and this is very strange, but if I can keep the house at least I have got something out of all this.

Any advice?

Leon_W

Quite frankly you sound like the type that sensible advice would be completely wasted on.

annabelle81

Leon_W wrote: »

Quite frankly you sound like the type that sensible advice would be completely wasted on.

why's that? to be fair- he compeltely fooled even his parents, uni, friends etc. he went to work everyday the same time as me- and everything.

what is the point in sending a reply like that?

silvercar

Your boyfriend (or should that be ex-) lied on the mortgage application. To go ahead and get the mortgage would be fraud, obtaining money by deception. You would be a party to this as joint applicant.

I think you have to own up to the solicitor that the mortgage was fraudulently obtained. Then follow his advice, for which he would be legally liable.

annabelle81

silvercar wrote: »

Your boyfriend (or should that be ex-) lied on the mortgage application. To go ahead and get the mortgage would be fraud, obtaining money by deception. You would be a party to this as joint applicant.

I think you have to own up to the solicitor that the mortgage was fraudulently obtained. Then follow his advice, for which he would be legally liable.

the solicitor says to complete, then secure the mortgage and then get them taken off the mortgage and as an owner of the property.

If I don't complete, I will get sued for the full amount of the property.

It is a real mess. Hence why I am asking for advice.

silvercar

Also, it sounds like a bad idea to be financially linked to this guy. Getting a joint mortgage would link your credit rating to his credit record.

Do you still want to buy the house? If so, I would find a whole of market broker who can source a mortgage for you from a lender that can work quickly. (You can probably arrange for the valuation to be retyped for the new lender.) Hopefully there will be little delay. If it is not sorted by completion day, the seller can serve you with notice to complete. This gives you another couple of weeks to sort things before you enter the realm of breached contracts.

annabelle81

silvercar wrote: »

Also, it sounds like a bad idea to be financially linked to this guy. Getting a joint mortgage would link your credit rating to his credit record.

Do you still want to buy the house? If so, I would find a whole of market broker who can source a mortgage for you from a lender that can work quickly. (You can probably arrange for the valuation to be retyped for the new lender.) Hopefully there will be little delay. If it is not sorted by completion day, the seller can serve you with notice to complete. This gives you another couple of weeks to sort things before you enter the realm of breached contracts.

the other part of this is that the deal we got was through ownhome, the government equity loan scheme.

If I do complete the sale and then transfer ownership from joint to single and then tell the mortgage company that we have split up; will they insist i get a completely new mortgage deal or let me stay on my current deal? (or a likely scenorio)

thanks for all help- much appreciated.

silvercar

the solicitor says to complete, then secure the mortgage and then get them taken off the mortgage and as an owner of the property.

Its an option. I would only follow this line if I first put the situation in writing to your solicitor, so you can clearly show you followed legal advice.

If I don't complete, I will get sued for the full amount of the property.

True, if you don't complete at all. Completing late won't cost you that much. Actually you both will get sued, not you alone.

The seller would have a duty to mitigate losses. So would have to resell, you both would be liable for resell costs and any difference in price.

Transferring the property from two names to one will require the guy's signed agreement. It also relies on you being able to source a mortgage on your own. A lot of lenders won't allow remortgages within 6 months of you buying the property.

silvercar

If I do complete the sale and then transfer ownership from joint to single and then tell the mortgage company that we have split up; will they insist i get a completely new mortgage deal or let me stay on my current deal? (or a likely scenorio)

Wrong order of events. You cannot transfer to single ownership without the lenders agreement. The lender, if they are happy to lend to you alone (sufficient income/ decent credit rating etc) should allow a transfer of equity to you on your current deal.

the other part of this is that the deal we got was through ownhome, the government equity loan scheme.

Not a clue how this bit would work. Will they have a charge on your property? Would they have allowed you to have the loan if you were on your own? Will they allow the loan to be transferred to you alone?
All questions to ask them, maybe without giving your name at this point in time.

skint_chick

Are you able to change the application with mortgage lender and ownhome to sole application/guarantor with parent - if you went through a broker they should be able to advise you if this could be done. Your solicitor is telling you to go ahead with mortgage fraud? And after completion removing your ex's name is subject to ownhome, mortgage lender, AND your ex's all agreeing to it. He sounds like the kind of ***hole who would cause problems at this stage.

Speak to another solicitor - be completely honest with them. If you're a union member at work then sometimes you have access to legal advice as part of this. Mortgage fraud is very serious and when you are caught will affect you in the future. Companies share information like this with each other - it WILL come back to haunt you. And you'll be living in fear waiting for that call/letter through the door - not worth it.

annabelle81

silvercar wrote: »

Its an option. I would only follow this line if I first put the situation in writing to your solicitor, so you can clearly show you followed legal advice.



True, if you don't complete at all. Completing late won't cost you that much. Actually you both will get sued, not you alone.

The seller would have a duty to mitigate losses. So would have to resell, you both would be liable for resell costs and any difference in price.

Transferring the property from two names to one will require the guy's signed agreement. It also relies on you being able to source a mortgage on your own. A lot of lenders won't allow remortgages within 6 months of you buying the property.

i have this in emails to the solicitor; so this should be OK. I am more concerned about mortgages as I would like to stay with the same deal. Similarly with the government equity loan through ownhome- does anyone know what will happen to this.

People must split up all the time - so mortgage companies must be used to dealing with this (or so I think). Would they not allow me to keep the mortgage (I earned more money anyway) with my parents guaranteeing it?


I think i can wait six months for this to happen. I can get all the paperwork signed before;