Have we actually exchanged???

GMS

The fact that you are needing to ask a forum if you have exchanged does not reflect well on your solicitor.

The lender shoudl have issued a re-offer for the higher loan which they appear to not have done. It is possible they have issued it to the solicitor by fax with a postal copy on the way to you.

Your broker should know if the higher offer has been issued. Can you not get in touch with the broker today to put your mind at ease?

Which lender is it?

Lbarn

GMS wrote: »

The fact that you are needing to ask a forum if you have exchanged does not reflect well on your solicitor.

The lender shoudl have issued a re-offer for the higher loan which they appear to not have done. It is possible they have issued it to the solicitor by fax with a postal copy on the way to you.

Your broker should know if the higher offer has been issued. Can you not get in touch with the broker today to put your mind at ease?

Which lender is it?

We have exchanged, our solicitor confirmed yesterday morning, he confirmed by telephone and email and sent a copy of completion notice from sellers agent. My header is basically because our broker said he would not have been able to exchange without the correct figures, but our lender (santander) has confirmed figures are incorrect.

The re-offer has come through, but with old figures... but new purchase price.

Spoke to broker yesterday and he said not to worry it would have been a simple admin error and paperwork could be re-issued, but lender have told me this morning it will take a week as needs to be re-written (again!) and funds sent back to them by our solicitor.... then full amount sent back again (instead of them sending the deficit)

Our mortgage advisor got all the mortgage raised, requested re-valuation etc last week when we had to raise bid and this had to be confirmed before exchange.... i am guessing verbally as he was chasing for 2 days. But then paperwork comes through wrong and lender has confirmed there is a 3.5k shortfall??!!?

Lbarn

If everyone is in agreement that the very worst that may happen is we have to find the shortfall, I can live with that...... its not ideal but as long as won't lose the house

GMS

Solicitor is at fault for exchanging with a shortfall.

Broker should get on to Santander first thing Tuesday and explain the position emphasising the urgency as completion imminent.

Common sense should hopefully prevail and additional funds can be sent rather then return and re-requesting of funds.

Completion may be delayed slightly or you can pay the shortfall.

kingstreet

Your solicitor should not have exchanged without a penny accurate offer and all other documentation completely correct in his/her hands.

Lbarn

Is there any consequence if he has exchanged without documentation or with incorrect figures?

I think that the point I was trying to get to in a round about way, has he potentially forfeited our exchange when this comes to light.

I am really worried now.........

kingstreet

No. The problem as you identified earlier is that he may not have the necessary funds to honour the agreed completion date, leaving you to make up the difference.

If he hasn't waited for a corrected offer, was he aware the price has changed and the contract would require amendment?

jamesd

Your purchase will complete. Your lender has agreed that the terms in the letter are wrong and that they will pay the correct amount on Tuesday. That's enough to get the purchase done but don't be surprised if your solicitor wants you urgently in their office to sign corrected paperwork, even on the day of completion.

Assuming that the standard conveyancing contracts are being used, if you don't complete on the day agreed at exchange the seller's solicitor will probably send your solicitor a "notice to complete" and you are liable for interest at the agreed rate and are required to complete within ten business days of the notice being served. The interest cost might be annoying but your deposit is not threatened with loss until the ten days have expired if the normal contracts are being used.

By exchanging without a valid mortgage in place your solicitor has at least made themselves liable for the interest that you'd have to pay the seller if a notice to complete is served.

Those ten days of margin are part of why I can be sure that your purchase will complete, even if it doesn't happen on the expected day.

Lbarn

kingstreet wrote: »

No. The problem as you identified earlier is that he may not have the necessary funds to honour the agreed completion date, leaving you to make up the difference.

If he hasn't waited for a corrected offer, was he aware the price has changed and the contract would require amendment?

Hi Kingstreet, yes he was well aware the purchase price had changed and contract was being amended, as we were all on the phone together chasing the surveyor to amend valuation, mortgage offer etc.

Thrugelmir

Lbarn wrote: »

Would our solicitor not have agreed all this with lender at exchange thats what we don't understand?

What were your instructions to your solicitor?

Did you confirm that exchange should go ahead. On the basis that your agreeing an increased mortgage offer with the lender.