Vendors pull out AFTER exchange of contract

CharleneUK

Sorry to bump this thread, but I'm just SO pleased for you!! I'm sitting here grinning like a cheshire cat!! It may not be till a few months till you settle into the new property, but wow, what a result after all those months of stress and nightmares I'd imagine!!

All the best for your future!!

xx

leaky5

Sorry to bump this after so long, but we have come across an interesting situation in our sale.

We exchanged contracts on Tuesday of this week, we have a very short chain.

Our current house, or more correctly the ground around our house suffered from heave a few years ago.

This was mentioned to the surveyor and his report to the Nationwide BS mentioned this.

Our purchaser received a mortgage offer from Nationwide and we thought all was OK.

Then our purchaser tried to get Nationwide to insure the property. Which BTW we currently have mortgaged and insured through Nationwide.

Nationwide have now turned round and said that they are not happy with something in the survey and they may withdraw the offer.

Can they do this after they have made an offer and contracts have been exchanged based on these funds having already been approved ?

Our solicitor thinks they may be able to do this and that our buyer could end up in breach of contract.

pawpurrs

Unfortunelty yes they can, decide not to lend at any time :eek:
However that does not mean that the buyer wont get a mortgage elsewhere, although it could delay the sale, if the sale is delayed or there is a breach of contract then they are liable.

pawpurrs

What doesnt make sense however, is that it is currently mortgaged through Nationwide, they are therefore lending on it at the moment, and if they stop the sale will carry on being the mortgagee untill you can resell, unless they decide to call in your mortgage as well? Which is unlikely, if you are a good customer and pay on time etc, so its all a bit silly as they are not being asked to take on something new. I have to say I have recently found Nationwide to be a pain in the provobial.

DVardysShadow

leaky5 wrote: »

Sorry to bump this after so long, but we have come across an interesting situation in our sale.

We exchanged contracts on Tuesday of this week, we have a very short chain.

Our current house, or more correctly the ground around our house suffered from heave a few years ago.

This was mentioned to the surveyor and his report to the Nationwide BS mentioned this.

Our purchaser received a mortgage offer from Nationwide and we thought all was OK.

Then our purchaser tried to get Nationwide to insure the property. Which BTW we currently have mortgaged and insured through Nationwide.

Nationwide have now turned round and said that they are not happy with something in the survey and they may withdraw the offer.

Can they do this after they have made an offer and contracts have been exchanged based on these funds having already been approved ?

Our solicitor thinks they may be able to do this and that our buyer could end up in breach of contract.

Yes, offers can be withdrawn, but it is rare.

If anything happens on this, please start a new thread, because your situation does not have a lot in common with the thread you have tacked on to. This is your willing buyers being thwarted, the thread is about stroppy sellers changing their minds.

leaky5

pawpurrs wrote: »

Unfortunelty yes they can, decide not to lend at any time :eek:
However that does not mean that the buyer wont get a mortgage elsewhere, although it could delay the sale, if the sale is delayed or there is a breach of contract then they are liable.

There is a possibility it could work in our favor.

We are due to complete on the 30/4, but our new house which is still being built is not going to be ready until June or maybe into July, so we were planning to rent for 6 months.

Our purchaser is very keen to have our house and might be willing to wait until our new place is ready and it could give them time to obtain another mortgage.

John_Pierpoint

Has anyone pointed out the stupidity of the situation to Nationwide?.
Presumably your buyer needs a bigger mortgage than you have outstanding with Nationwide?
(ie Nationwide is increasing its risk?)

silvercar

The new business arm may not be aware that the existing customer arm already lends and insures on this property. Even if it is aware, it knows you are selling so will soon be rid of this property from its books.

Often, when a property proves difficult to insure, the buyer or the seller on the buyer's behalf, asks the current insurer if they will provide cover to the new buyer, so the chances are that Nationwide could continue to be the insurer.

neverdespairgirl

Ian_W wrote: »

I've never known circumstances where I'd show a counsel's opinion to the other side - they could sleep with my wife first!! Opinions cover the strengths and WEAKNESSES of your case and the TACTICS you should adopt.

It depends what Counsel is asked to advise on, though. Of course, a routine opinion is exactly as you state, but Counsel acts on instructions.

neverdespairgirl

franklee wrote: »

Yes, Surely their surprise at the EA's bill tells us that they haven't been properly advised.

I don't think so - it could equally be the case that they aren't listening to the advice.