Breached Missives (Scotland)

phyds1

Any advice appreciated

My house sale was due to complete this Friday (missives were signed in late oct). I found out today that the buyer was pulling out as they have been unable to get a mortgage. The buyer is therefore in breach of contract and I have been told that they will be liable for reasonable losses. However, I'm not sure the chances of me recovering any loses.

To make things even worse I agreed to purchase a new property and signed missives for it (after the missives for my sale were signed). I'm now in a position were I'm unable to complete (on monday 2nd) as a result of my sale falling through. This means that I will be liable for the loses that the sellers of that property inccur.

My lenders will not allow me to run two mortgages at the same time or allow me to take a bridging loan. Therefore, letting my property out is not an option. I'm in the process of re-marketing my property but not hopefull that it will sell.

Has anyone experienced a similiar situation or have any advice on what I should do next?

GDB2222

I think you should think about getting a bridging loan for the new place. I don't see how your existing lenders can stop you? Affording both places is more of a problem.

I'm sorry, but you've done everything by the book and still got screwed.

FingersCrossed_2

Hey,

Really sorry you're going through this.

I'm in Scotland too. I 'sold' my house last year, missives were signed and guy pulled out day of exchange - grrr. I wanted to seek compensation but solicitor advised it would be very difficult. The guy 'disappeared' so to get money back I would have to hunt him down through the courts costing me a lot of money and mega stress. You can't take what someone doesn't have so even after all that he could have ended up agreeing to pay me back at £10 a month or something ridiculous. So, I just took the blow. House still hasn't sold....

I realise this isn't encouraging - sorry. I would still check with the solicitor as you obviously have more at stake and risk having the sellers pursuing you.

Totally understand how awful this is. Best of luck.

Crazyjoe

We are going through a similar problem. Our lender does not do bridging loans but said that as long as the property was being actively marketed, they would allow us to run with 2 mortgages for 3 months. They have actually allowed this for much longer as we have been keeping up the payments. We are pursuing the buyer for losses. How did you get on?