Buying flat - after completion date, still not complete

readyto_2

Hey everyone,

I was due to complete on buying a flat 8 days ago. I transferred the money to the solicitor on the day of completion (though it took 3 phone calls for them to acknowledge they had received the money on the agreed day).

After a couple of calls to and from the estate agent and solicitor I learn that the seller is ready to complete though the lender wants some queries regarding the leasehold answered before they release the funds (my understanding is that it basically does not exist for this property).

From what I can gather my own solicitor has been largely incompetent in dealing with this purchase (it took 5 phone calls over 3 days to finally speak to him last week after continued promises of 'he's in a meeting, he'll ring you back', this was after we passed the completion date). Also though, the seller of the property is the one who has converted it into 2 properties from 1. So I understand that he is at some fault for bodging the legal side of things.

My question is that who should I be ringing next week to try to get things sorted?

I'm at a bit of a loss here, not 100% what the correct thing to do is. It's not a problem for me to wait a bit longer, though I obviously would like to get moved in.

I am thinking I should speak to my lender first - find an explanation, solicitor second, then estate agent last if I don't get a satisfactory explanation of where we at from the first two.

Thanks for any help or advice you can offer.

G_M

It sounds like you have a problem with your solicitor so stop ringing and write a letter asking

* for a full explanation as to why Completion did not take place
* whether it was the seller's fault (yes I know you know it wasn't!) and what compensation he is going to extract from the seller if so
* whether it was the mortgage lender's fault and what compensation he is going to extract from the lender if so, or
* whether it was a legal problem, and what compensation he is going to offer you if so

if/when you do not get a satisfactory reply, or adequate compensation, write (yes, a letter again) to the Senior Partner at the firm (or check their Terms of Business for their Complaints procedure).

if/when you do not get a satisfactory reply, contact the Solicitors Regulation Authority and/or The Legal Ombudsman

Meanwhile keep track of all your costs (eg hotel bills since the planned Completion date; cancellation fee for removals company etc) and keep all receipts.

smartpicture

If it's your mortgage lender that is holding things up, then surely it is you who will be expected to pay compensation up the chain for failing to complete on time?

thelem

Have you exchanged? The above advice assumes that you have exchanged, and that a completion date was set when you exchanged.

If you have yet to exchange, then you basically have no rights.

G_M

thelem wrote: »

Have you exchanged? The above advice assumes that you have exchanged, and that a completion date was set when you exchanged.

If you have yet to exchange, then you basically have no rights.

Sorry - good point.

I assumed Exchange had taken place. If not, ignore my advice above!

Ivana_Tinkle

OP, are you saying that nobody has yet seen the lease for the flat ("my understanding is that it basically does not exist for this property")? If that's the case, then surely you can't possibly have exchanged yet. It also sounds like you don't have your formal mortgage offer yet ("the lender wants some queries regarding the leasehold answered before they release the funds"). I think you may have misunderstood the property-buying process, as it sounds like you're nowhere near ready to exchange, let alone complete.

If, however, you have exchanged contracts, then it sounds like your solicitor has been massively negligent - if you can clarify then someone here will be able to advise you further.

readyto_2

Ivana_Tinkle wrote: »

OP, are you saying that nobody has yet seen the lease for the flat ("my understanding is that it basically does not exist for this property")? If that's the case, then surely you can't possibly have exchanged yet. It also sounds like you don't have your formal mortgage offer yet ("the lender wants some queries regarding the leasehold answered before they release the funds"). I think you may have misunderstood the property-buying process, as it sounds like you're nowhere near ready to exchange, let alone complete.

If, however, you have exchanged contracts, then it sounds like your solicitor has been massively negligent - if you can clarify then someone here will be able to advise you further.

No, I have the mortgage from the lender that was due to start on the 16th of November.

I have been to the solicitors and signed various forms regarding the purchase of the flat. I was told I'd signed all the necessary contracts and all that was left was the completion.

On the completion date I paid the solicitor the full bill (the deposit for the property, solicitor fee, mortgage broker fee, lender fee).

I spoke to the estate agent on the day of completion and they said the sellers solicitor were still waiting for some paperwork from my solicitor. My own solicitor said they hadn't had some queries answered from the sellers solicitor adequately.

Just to add as well: the last time I spoke to my solicitor, they said that the lender had had a problem regarding the leasehold (I've seen a leasehold in the documentation that was meant to have 997 years left to run I believe - the solicitor related there was some problem when he divided the properties). They added that it was a complicated legal situation and that the lender wanted the seller to take out some form of insurance.

I'll clarify further if you have any questions, but I'm not entirely sure of the problem myself.

Kynthia

Sorry, can you confirm when you exchanged?

smartpicture

The first thing you need to clarify is whether you have exchanged or completed. Check your understanding of the terminology here, it is very important: http://www.fool.co.uk/Property/guides/Solicitors-Exchange-And-Completion.aspx

Thrugelmir

Completion day isn't set until all other matters are dealt with.

So who set the date and when?

thelem

readyto wrote: »

On the completion date I paid the solicitor the full bill (the deposit for the property, solicitor fee, mortgage broker fee, lender fee).

That sounds very much like exchange and completion on the same day, as you would typically (although not always) pay a 10% deposit at exchange. If so, then you're still at the stage of all parties getting the paperwork in order, and any party could stop the sale at any point if they found something they didn't have.

I'd be asking for details of exactly who and what is holding things up - is the freeholder proving difficult to get hold of?