Bottom of chain has mortgage pulled AFTER exchange

pawpurrs

It could potentially get more complicated, as if people in the chain remarket and sell at a lesser price than previously aggreed as I understood it they can then sue for the difference. :eek:

What a nightmare! I hope that some solution can be found, and one everyone is happy with, if the FTB was honest about the BR and the bank have just got twitchy, I would be very angry with them in her shoes. I really do think that the banks should be culpable, they should be made to complete, I understand you could lose your job, get a CCG etc, but that could happen any time after completion too. If you are obligied to complete, then so should the bank be, any checking should be done before exchange.

silvercar

If the FTB was living with family, I wonder if the family would help out? 17k is a hell of a lot to watch your child lose, maybe they could increase their mortgage to fund the help fund the purchase.

The fact that all the houses are roughly the same value makes it harder to manouvre. Any chain I've ever been involved with had properties in increasing value, starting with FTB and ending with a new build or someone leaving off the property market.

vexta

silvercar wrote: »

If the FTB was living with family, I wonder if the family would help out? 17k is a hell of a lot to watch your child lose, maybe they could increase their mortgage to fund the help fund the purchase.

The fact that all the houses are roughly the same value makes it harder to manouvre. Any chain I've ever been involved with had properties in increasing value, starting with FTB and ending with a new build or someone leaving off the property market.

It probably would have got like that if our vendors had'nt made themselves top of chain as there was originally another three or four parties above them. I'm just hoping that our vendors who we have a good rapport with and seem to be good people are happy with an unexpected £17k which is probably about three or more times their costs. I'm also hoping that they're happy (with this new addition to their kitty) to keep us as prefered buyers.

GDB2222

Vexta, is your buyer's house on the market? If so, perhaps you should post a Rightmove link here? You never know, but your little old lady might find someone from here who can buy it from her (at a £17k discount of course). Similarly, your house.

The issuing of completion notices, even if it is done on Friday, does not necessarily mean litigation. It means there is a timetable for everybody to complete. If you or your old lady can find a cash buyer within that timetable, then your part of the transaction can complete. A 10% discount might be enough to swing it for a cash buyer, but if you are going to have a fire sale, now is the time to go for it.

GDB2222

I think the timetable is 10 working days, by the way.

franklee

vexta wrote: »

It probably would have got like that if our vendors had'nt made themselves top of chain as there was originally another three or four parties above them. I'm just hoping that our vendors who we have a good rapport with and seem to be good people are happy with an unexpected £17k which is probably about three or more times their costs. I'm also hoping that they're happy (with this new addition to their kitty) to keep us as prefered buyers.

Not sure how you figure 17K is three or more times their costs should the worst happen and the chain disintegrate.

Wouldn't their costs be:

1. EA fees for the new sale (the first lot are probably still due as contracts were exchanged).

2. Costs to keep the house empty till it sells again e.g. mortgage payments maybe for several months.

3. Any difference in price if they have to drop the house price.

4. Any extra solicitors fees etc.

In a falling market 3. is potentially the one to worry about.

Which is why I hope the chain can be saved one way or another.

franklee

I suppose the first thing to chew over is when do you all go back on the market? Maybe best to do that sooner rather than later in the hope one of you can get another buyer? It would not necesserialy mean the end of your current chain quite yet to do that as backup.

silvercar

GDB2222 wrote: »

Vexta, is your buyer's house on the market? If so, perhaps you should post a Rightmove link here? You never know, but your little old lady might find someone from here who can buy it from her (at a £17k discount of course). Similarly, your house.

I think in order to sell your house, you would need the OK from your buyer. You have contracted to sell to them and if they managed to rescue their purchase you would be in conflict if you had a second contract with someone else. That said your buyer may be delighted to have a route out of their purchase obligation.

Putting a rightmove link is a good idea. A lot of traffic passes through mse, so someone may be interested.

Someone in your chain could also look at bridging finance possible.

Other places to try for a quick sale are singingpig.co.uk, getanoffer.co.uk or one of the buy-your-house-in-24-hours brigade.

GDB2222

That's 3 people suggesting putting the house back on the market pretty smartish, then!

Silvercar has a point about your buyer having a right to prevent you selling to someone else. The way round that is to serve your completion notice on your little old lady a day before you get served with yours by your seller. So, do that Thursday to be on the safe side. It's a shame, but ...

vexta

GDB2222 wrote: »

Vexta, is your buyer's house on the market? If so, perhaps you should post a Rightmove link here? You never know, but your little old lady might find someone from here who can buy it from her (at a £17k discount of course). Similarly, your house.

The issuing of completion notices, even if it is done on Friday, does not necessarily mean litigation. It means there is a timetable for everybody to complete. If you or your old lady can find a cash buyer within that timetable, then your part of the transaction can complete. A 10% discount might be enough to swing it for a cash buyer, but if you are going to have a fire sale, now is the time to go for it.

New update...

A cash buyer has stepped in who's keen to possibly buy our buyers flat!!! (at 90% original price) This buyer is aware of the process and that the FTB will still have 10 days to complete, if she can, after a notice to complete has been served.
Trying not to raise our hopes too much but feeling slightly encouraged with this possibilty of a backup if FTB can't get things together by Friday.

I so hope this can work, have been in touch with our vendors to tell them about this option and they seem quite open to the idea as long as it can happen quickly. Considering whether to offer to pay them a month's rent to keep them on board. Also informed solicitor, so hopefully he can oil the wheels...

This is such a nightmare _pale_