Bad advice , promised to complete and didn't!

dilleybmw

The problem with the loan is that the application was put in at the last minute, val/survey not carried out yet. Plus the terms are the worst I have ever seen!

JQ.

Not what you want to hear, but ultimately you should not have exchanged without finance in place - that's your responsibility not the brokers. Commercial property finance is much much harder to secure than residential, I'm surprised they said it would be easy. Meanwhile development funding is by far the hardest form of commercial lending to secure, no banks wants to do it.

What has the lender you have applied to said about the application? Do they think it will go through, as there are many many commercial lenders out there who would not touch a pub redevelopment with a barge pole, you need to make sure you've not applied to one of them.

Obviously I'd be taking issue with paying the broker a fee on the basis of what has happened. I'd also try and get a broker who knows what they are doing and gives you honest opinions and get some more applications asap.

GDB2222

You can't do much about the loan terms, but the mortgage brokers owed a duty of care to you as a client. If they overstated their abilities, they probably have breached that duty. Of course, if you can get out of this with your shirt on, you probably don't want to get involved in a legal dispute that could drag on for years.

dilleybmw

It looks as if the funding is a major issue, a bridge loan is just horrendous. I need to tell my solicitor that I am not going to be able to complete.....I understand that I will lose the deposit of 15k but, what are the chances of the vendor that happens to be a pub chain, sueing me? the property has not dropped in value.

GDB2222

They are very likely to sue you for any significant losses. They have a legal department, and so it's quite likely they'll sue if they think it worthwhile.

Care to give a link to the property?