withdrawing offer after winning auction

trebor1980

Hi, About 3 months ago I won a property at auction, paid 10% and got my mortgage sorted. Everything was supposed to be completed within 30 days but due to land registry problems which i have no control over it has been dragging on and my mortgage offer has expired...Is there anything I can do to withdraw the offer or any other advice to get the sale sorted quickly as this is costing me a lot of money?
Thanks in advance

Doozergirl

I'm sorry you've landed in this situation but you can't withdraw your offer. You have legally commited to purchasing the property. If you don't complete you will immediately forfeit the 10% deposit. You are currently in breach of contract for non-completion if you have gone past the agreed completion date - interest is therefore charged daily on the full purchase amount (usually at 4% over base).

The issues you have had were within your control. At the point at which you exchange contracts, you are declaring that you have done any research and are happy to buy. Any problems were your own responsibility to find before signing on the line and therefore if you haven't completed then it's going to be your own fault - you are in breach of contract.

If you try to withdraw from the sale, the vendor can pursue you for their associated costs - this will be, on top of the 10% deposit and the interest, their solicitor's fees, the auctioneers fees and then, most importantly, the difference in the price you agreed and any shortfall from selling to someone else.

You need to find a way of funding this purchase and keeping it or of funding it and then re-auctioning it yourself.

It's too late now but if you ever buy at auction you need the mortgage offer on the table already and I'd suggest another back up source of funds - bridging, auction finance.

Another chat with your solicitor I think, if you are still under the impression that you can pull out

What is the problem with the Land Registry? Were you waiting for a mortgage offer or was there a firm one on the table? It's odd that you can have a firm offer but an outstanding issue that prevents you from completing. Not being able to complete to me means that the property couldn't satisy the mortgage criteria.

PasturesNew

What Doozer said.

Richard_Webster

If the "Land Registry problems are the seller;'s fault, e.g he doesn't have his name registered at the Land Registry then you might have a legitimate reason for refusing to complete and asking for your deposit back.

However, unless we know that these problems are it is difficult to say much more about it.