Financial security if chain falls apart upstream

amonty

Hello everyone,

I am buying into a chain (I am chain free myself). The property I am buy has all the papers in order and we have green flag from our solicitors. However the property my sellers are buying has some critical missing paper work. This has delayed our contract date by almost 2 months. Now my mortgage offer was originally for 3 months and this month end I will be 3 months over (i.e. my offer would have expired). Now I am always fearful of the financial loss I will have to incurr as part of this failed deal.

Is anyone aware of any protection policy or anything insurance product that can protect me against the financial loss risk. More over I have funny feeling that the sellers had their mortgage offer given to them after me so would have more time than my offer and thus dont care much for my issue. I will end up paying for the solicitor, the re-valuation fee and also possible new mortgage application. I dont have the money to pay for the above twice. Please help.

Warm regards,
Monty

DVardysShadow

amonty wrote: »

Is anyone aware of any protection policy or anything insurance product that can protect me against the financial loss risk. More over I have funny feeling that the sellers had their mortgage offer given to them after me so would have more time than my offer and thus dont care much for my issue. I will end up paying for the solicitor, the re-valuation fee and also possible new mortgage application. I dont have the money to pay for the above twice. Please help.

Warm regards,
Monty

Not aware of any policy - and to ask for one now is like getting buildings insurance once you hear cans of petrol being put down by your front door.

If the vendors do not care about your mortgage, then they are being shortsighted, because your mortgage will be as much part of their funds as their own mortgage.

You need to work out how much it will cost you if you go beyond the 3 months - consult your lender about the exact procedure for an extension. But usually a delay works to the FTB's advantage, because if your finances are right, you should have more savings to hand. But if extra costs are going to be a show stopper, you need to go to the Agent, explain the situation, but not your finances and advise him that for exchange after a certain date, your offer will be reduced by whatever it will cost you. And get your solicitor to follow up with a letter.

ETA: Susie is correct, the lender will often extend an offer, the main reason for putting a limit on is that they like to have a handle on their upcoming loan commitment - the time limit just ensures that where interest is lost, the offer money can be recommitted. Sorry, got carried away and left that out.

SusieT

I had a mortgage offer that was going to expire before completion, I called the mortgage company and they agreed to extend it so that it would be valid when we did complete.
I had to back up the phone call with a letter so they had it in writing but it was very straightforward. Well worth calling them and seeing if they will extend it for you.

amonty

I have tried to reach out to my lender and asked for extension already. Infact just noticed in my original message I typed in the offer period wrongly as 3 month but it was infact for thepast 6 months. My mortgage broker tells me that their lenders attitude is that 6 months is more than ample time to complete the mortgage, so they would not contemplate an extension on my case. My lender are Abbey Bank / Santanders. Anyone else had a experience dealing with this lot.

I am begining to think in my case Abbey/Santanders just took the mickey. Justitia help. Two reasons why I am in such a situation in the first place - (1) The Solicitors dont talk to each other (2) No one in the chain do a project plan with target deadelines and sticks to it . I am worried :mad: