How can I complete a house sale with the sellers second charge?

humphrey201

I have recently began the process in purchasing a property. With no chain on either side I was told that it would take 6-8 weeks.

When I was invited into my solicitors to sign the contract they told me the completion date would probably be a week that day however she said the seller had a slight issue with a second charge over the property he needed to get released.

On the day set for completion I got a phone call saying that it would not be able to exchange today as they had not receieved confirmation in writing of the 2nd charge release.

The sellers solicitor then informed that everything had been agreeded by the lender with the second charge and we just needed confirmation in writing which would be slow.

Two weeks later I get told that the lender has decided not to release the second charge on the property and the sale can no longer go ahead.
If this does not go ahead I will lose all fees paid to date.

I spoke to the estate agents and they informed me this had happened to a couple before and because they could not afford their mortgage if they didnt sell and the house would eventually be repossessed anyway, their mortgage company overruled the lender with the second charge and allowed the sale to continue anyway. They said they would look into this for us.

Does anyone have any further information about this? Anything would be helpful.

jonesMUFCforever

Until exchange of contracts have taken place this is the risk you take (of losing your costs to date).
There is very little you can do - if the house is repossessed then you may get it at a lower price at some future date.

humphrey201

I fully understand this is the risk with house purchases. I was wondering if anyone had any information about 2nd charges, getting them released and if it is infact possible for the mortgage company to overrule the other lend. If so is this an easy task?