Help - problem with completion now!!!!!!!!

goldbyron

Help - this was an e-mail I have just received from my solicitor:

I can't believe this...he has advised they find a bridging loan.


We have exchanged contracts for completion this Thursday, 12 October.

On Friday I received a telephone message from our buyer's solicitors who are at the bottom of the chain.

They have a mortgage offer valid until December 2006, but the product has just expired and Platform Home Loans will not agree to an extension of the product. A new product has been agreed but involves a new offer being made, which they have been told should be available by Wednesday this week. However, Platform Home Loans require formal acceptance of the offer, and the hard copy in their hands before they will deal with the matter. Once the new offer is received the solicitors must formally apply for the funds again with a new certificate of title, release of the funds will take a week.

In short, my clients' buyers will not be able to complete this matter for at least a week after the contractual completion date.

As we previously informed you, Mrs M's father suffered a heart attack in September and was not expected to survive. I have been told today that he passed away yesterday. Mrs M is obviously very distressed and I do not wish to add to her distress with problems with her sale and purchase.

Mr M informs me that they would be prepared to delay the completion date to a date later this month.

Whilst I appreciate that if the completion date is not met notices can be served giving 10 working days to complete, this does mean that the chain would have to complete once the bottom of the chain was ready and a new date agreed at short notice.

Would it not be preferable for the parties in the chain to vary the terms of their contracts to agree a new completion date so everyone can re-arrange their removals?

Do you agree?

I would be most grateful if you would take your clients' instructions and get back to me as soon as possible. Our buyer's solicitors are chasing Platform again today and will get back to me later this afternoon

pawpurrs

Oh my goodness, what incompetance of Platform! Surely they should honnour the mortgage product! Crikey and you normally feel ok when you have exchanged!
I think the best answer is to all complete together, if they will not/cannot bridge.

silvercar

They have a mortgage offer valid until December 2006, but the product has just expired and Platform Home Loans will not agree to an extension of the product.

This sentence is a contradiction. Either they have a valid mortgage offer or they don't. If they don't then why did their solicitor allow them to exchange? Sounds like their solicitor screwed up and is now trying to use excuses to persuade you to agree a delay.

If it is the solicitor that screwed up then he should put it right without bothering his client during a stressful time. Or maybe the client (understandably) doesn't want to move house during a period or mourning and they are using this mortgage offer thing as a reason to delay.

linlin_3

I agree with silvercar and smell a rat!

Either way, they have exchanged and agreed completion. This should be adhered to without passing the problem onto others.

goldbyron

Yes I didn't understand at first, but the offer has not expired, just the product (interest rate etc).

It is the buyers buyer if you like and not Mr and Mrs M who is the vendor of the property below us.

I have stated the bottom should get a bridging loan as I do not see why I should absorb the additional costs (interest, storage, rent) - I don't live in the property I am selling.

Hoping they agree to this.

silvercar

goldbyron wrote:

I don't live in the property I am selling.

Which is why they think you will be acommodating.

To be honest, if they meet your out of pocket expenses (loss in interest) would it inconvieniance you to agree a delay? I don't see why you have to but would it affect you?

mjfusent

As I understand it most contracts only allow for recovery of interest in the event of late completion. i.e. you recover it from the party below you in the chain and are liable for it to the party above you (if there is one). So although your buyer has done nothing wrong you can claim lost interest on the sale price from them, they would in turn cliam from their buyer.

If the bottom of the chain won't bridge their vendor then has the option of either giving them 10 days notice then seeking whatever remedies the contract provides. As your contract is with your buyer you have the same options but only against them.

Alternatively as others have said you can just agree to wait if the bottom of the chain refuses to bridge.

Please someone correct me if I'm wrong...

pawpurrs

That sounds correct, although its all a bit fishy, normally your deal expires with your mortgage offer? No?
Maybe as silvercar daid the solciter exchanged by mistake somewhere, you never really get to the bottom of things sometimes.
As you dont live in the property, the only inconvienance is a material one, so as silvercar says make them give you your out of piocket expenses which is more than fair. Silvercar you speak sense!
Only problem is its the bottom of the chain (isnt it allways) and not your buyer causing the problems.

goldbyron

My ex partner is living in the property and is in a chain however. My ex assaulted me 2 weeks ago so there is an additional reason for wanting to sell.

Yes my main inconvinience is material. Thanks for this advice. I will ask my sol about recovering the lost interest from the buyers. Also would the buyers or myself be eligible for buildings insurance?

Thanks everyone.

pawpurrs

Insurance is a grey area, in actual fact the buyer and seller should have the property on risk between exchange and completion (another way for insurance companies to make more money)
Good luck, hope it sorts itself out, I remember now re Ex, bet you will be glad when this is all over. I remember your buyers caused a problem re going back recrntly, what happened over that did your ex let them in?

goldbyron

Oh blimey that was another issue!

Eventually after 3 weeks of wrangling my ex agreed to let them in on the morning of completion after they continued to threaten to withhold money. Although completion date is now a mystery event!

Haha - I just don't know whether to laugh or cry really. It really has been eventful and if this is resolved I will be amazed and in shock!