A confusing one - please help!

holly_hobby

getmore4less wrote: »

What if the tenents don't move out?

They will be in breach of the AST and a court order will be required for their removal (if they effectively become [STRIKE]squatters[/STRIKE]) . Stike the S word - not correct term for their position re NDG's subsequent post to this).

Obv the current owner will need to fund and organise that as the AST agreement (and its contractual breach) is between him and the tenants.

But it could take a while if he needs to go the court route .... and the prop could be trashed (if the tenants are feeling impish !) ... but again down to the current owner to sort it out. (take note wouldbe landlords these are the hazards that you can be faced with when renting )

As exchange of contracts have taken place, under normal circs - neither party may withdraw without penalty. (not withstanding the personal agreement that has been effected in this situation, which was a wise move OP !)

Hope this helps

Holly

Chin

holly_hobby wrote: »

I thought that you could not exchange contracts, unless you had a completion date in place/agreed ?

technically you can't, however because of this unusual situation we're in the two parties solicitors have made a revised contract that says if we don't get a solid completion date before our mortgage offer expires the deal is off

kingstreet

holly_hobby wrote: »

I thought that you could not exchange contracts, unless you had a completion date in place/agreed ?

Completion "on notice" is pretty common in the new-build world where they want instant exchange followed by completion at a point in the future they can't guarantee.

Chin

it's a sticky situation and is all based on 'worst case scenario' but upon reflection it was a wise move to have this clause put in place, thanks Holly. I'd love to take credit for it but it was our solicitor.

Fingers crossed they do find somewhere to live before our mortgage offer expires so this will all be not applicable - otherwise we'll be begging for an extension.

one final question - can a mortgage 'product' be changed at any time prior to completion (when funds are then drawn)? i've already changed product once with the lender given their rates have dropped during this whole process and will probably do it again if they remain this low before we complete, just don't want to leave it too late!

beachie

Along time ago back when things were "different" but in Sept 2006 I got a mortgage offer which they kept extending and extending till I got my flat in May 2007.

It is worth pushing for it - go and visit you bank manager/mortgage advisor and normally that leads to better results than calling them.

holly_hobby

You should be able to switch between deals until you complete (I did this myself on my own mge), but if you have paid a reservation fee (i.e reserving the funds at the given rate) on any product you subsequently want to switch, you will probably lose this fee. And if you do this a few times ... well the costs will start to mount up !!

If there is a res fee that will be forfeited on the switch, depending on the new rate, it may still be a worthwhile move, but obviously you shall have to bear this in mind when comparing the rate and the impact the lost reservation fee may make.

Hope this helps

Holly

The_Palmist

Chin wrote: »

doing it direct with YBS...of whom I've just noticed their 5 yr fixed has dropped to 4.24% which I'm keen to change to (we applied at the time of when it was 4.79%) but I'm reluctant to give them any more cash just yet in case the whole deal falls through.

our solicitor spoke to YBS who said that we can't apply for an extension until two weeks prior to the mortgage offer expiring.
so we are kind of in a strange situation of having exchanged contracts without a completion date.

RE not exchanging till the tenants leave this was out of the question - not possible as the landlord/seller would not give them notice till we exchanged in case the deal fell through. It was either accept this or walk away. We chose to accept which would have been fine in any other circumstances except we're cutting it so close to when our mortgage offer is on the table till.

I would suggest you call YBS and ask for your deal to be changed at no extra cost. Just say you are interested in this product and they should be able to change it for you. I recently did that with Halifax.
Assuming they will do that, you new offer will probably be valid for a little longer.

Chin

The_Palmist wrote: »

I would suggest you call YBS and ask for your deal to be changed at no extra cost. Just say you are interested in this product and they should be able to change it for you. I recently did that with Halifax.
Assuming they will do that, you new offer will probably be valid for a little longer.

Thanks - have tried but they won't change product without a new fee :-(
Have to pay £195 product fee each time they drop the rates but the savings per month are worth it!

neverdespairgirl

holly_hobby wrote: »

They will be in breach of the AST and a court order will be required for their removal (if they effectively become squatters) .

they don' t become squatters at all, in any sense of the word. A s.21 notice is an intention to seek possession of a property, that's all.

Thrugelmir

getmore4less wrote: »

What if the tenents don't move out?

I would consider the greater danger being the potential state of the property.