Have we actually exchanged???

Lbarn

jamesd wrote: »

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.

Hi Jamesd,
The correct amount is not being paid tuesday thats the problem, its the original amount we were borrowing not the new amount (so shortfall of 3.5k)
Our mortgage broker confirmed verbally wed i believe that lender had confirmed new purchase price and new lending amount and neither was an issue.

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.

Looking at the T&Cs they do talk about a notice being served, and talk about interest and a fine of £150 + VAT.

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.

Its been so manic and crazy, I am starting to wonder if solicitor just exchanged assuming all would be well as we were calling them/visiting office constantly over the past few days.

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.

Thank you James, you have really put my mind at rest.... your answer does correspond with what the terms say, i was just so worried as because when your buying a repossession the conditions and expectations are so stringent from the seller, its made blatantly obvious there is no leeway for the buyer.

Lbarn

Thrugelmir wrote: »

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.

Yes we have been screaming to exchange as we kept getting outbid at the last minute, on the day of exchange.... you may have seen a previous thread where I was becoming increasingly suspicious of the EA.

Its been a rough ride, like I said to kingstreet maybe our solicitor as done it in our best interests not expecting paperwork to be incorrect?

jamesd

Assuming you have the money it's best to have the difference available to send to your solicitor on Tuesday, just in case the mortgage company has another glitch. There is one certainty: the sale won't complete on time unless the vendor gets all of the agreed price paid to them on completion day. It'd still get sorted out later, just best to be ready.

You are also entitled to serve a notice to complete if they were reluctant to complete now the contracts have been exchanged, so they can't just pull out now either.

Thrugelmir

Lbarn wrote: »

Yes we have been screaming to exchange as we kept getting outbid at the last minute, on the day of exchange....

Then your solicitor has taken your instructions and acted upon them.

Any consequences of exchanging and failing to complete on the prescribed today will rest entirely on you.