Mortgage withdrawal

Concernedhousebuyer

I have just had an offer accepted on a property. There is no chain involved but the property has tennets with two months notice so the seller wants to exchange two months before completion.

My concern is that if I lose my job between exchange and completion (a possibility in this environment) will the building society withdraw the mortgage offer?

I have three months notice so in theory I would still be employed and I also have unemployment insurance which would almost cover the monthly mortgage payment. Does this make a difference?

Also I can't seem to find a policy to insure my deposit should the offer be withdrawn.

Any advice gratefully received.

caeler

My advice would be to not exchange whilst the tennants are still in situ. They may have been served notice but that doesn't mean they will leave and if you exchange you are duty bound to complete which you'll be unable to do without vacant position. What does your solicitor say about this request?

G_M

Concernedhousebuyer wrote: »

I have just had an offer accepted on a property. There is no chain involved but the property has tennets with two months notice so the seller wants to exchange two months before completion.
Do not under any circumstances Exchange contracts till the tenants have actually left (and you have been round to check!)
Bear in mind in can take up to 6 months to evict reluctant tenants.

My concern is that if I lose my job between exchange and completion (a possibility in this environment) will the building society withdraw the mortgage offer? I doubt if you have a mortgage offer yet - you have a mortgage in principle only

I have three months notice so in theory I would still be employed it would be a material change in your circumstances which you would have to declare. When the mortgage lender wrote to your employer the employer would say you were being made redundant.and I also have unemployment insurance which would almost cover the monthly mortgage payment. Does this make a difference?Is the insurance a fixed amount or is it linked to your mortgage? If the latter, the mortgage is not yet in place so....

Also I can't seem to find a policy to insure my deposit should the offer be withdrawn. Stop looking. You won't find one

Any advice gratefully received.

Hope this helps..

thelem

Agreed. Your vendor should have already served notice to his tenants as he isn't really in a position to exchange except to a buy to let investor.

Concernedhousebuyer

Thanks all

Sounds like the only thing I can do realistically is try and get the exchange and completion dates moved more closer together.

Yorkie1

The seller wants to have his cake and eat it by getting you to sign on the dotted line and then gamble on the tenants actually a) leaving at the end of the notice period, and b) leaving it in a decent condition.

Depending on the version of the contract you sign, it is possible that the risk of the condition of the property may pass to you on exchange - meaning that if you sign early, and the tenants leave it in a right state, you have the responsibility for putting it right rather than the seller.

As G_M says, you must refuse to exchange until the tenants have left and you have checked the condition of the property. There is nothing to stop completion thereafter being within a week or so.

You are right to be concerned.

Lavendyr

Concernedhousebuyer wrote: »

I have just had an offer accepted on a property. There is no chain involved but the property has tennets with two months notice so the seller wants to exchange two months before completion.

NONONONONO - do NOT do this!

There is no guarantee that the tenants will move out in the two-months notice. They can stay until forced out by a court order. If you exchange before the tenants are out, you run the risk of completing without vacant possession and having to get the tenants out yourself. Not to mention that I'd be highly surprised if your lender would be OK with this. If your solicitor doesn't wave HUGE red flags at this I'd be concerned about their level of competence.

Concernedhousebuyer wrote: »

My concern is that if I lose my job between exchange and completion (a possibility in this environment) will the building society withdraw the mortgage offer?

Quite possible as well. If your circumstances change you would need to inform the lender and they could withdraw the offer. Are you sure you want to be contemplating a house purchase if this is a realistic possibility!?

ruggedtoast

Concernedhousebuyer wrote: »

I have just had an offer accepted on a property. There is no chain involved but the property has tennets with two months notice so the seller wants to exchange two months before completion.

My concern is that if I lose my job between exchange and completion (a possibility in this environment) will the building society withdraw the mortgage offer?

I have three months notice so in theory I would still be employed and I also have unemployment insurance which would almost cover the monthly mortgage payment. Does this make a difference?

Also I can't seem to find a policy to insure my deposit should the offer be withdrawn.

Any advice gratefully received.

They would if you told them.

Thrugelmir

Concernedhousebuyer wrote: »

Thanks all

Sounds like the only thing I can do realistically is try and get the exchange and completion dates moved more closer together.

Between 1 - 4 weeks is the norm.

keyser666

Concernedhousebuyer wrote: »

Thanks all

Sounds like the only thing I can do realistically is try and get the exchange and completion dates moved more closer together.

Sounds like you are not following the advice you have come here to listen to?

ruggedtoast

Yeah you would be nuts to exchange on a property with tenants in situ. I cant imagine your lender would allow this anyway.

If you're concerned about losing your deposit exchange and complete on the same day, not 2 months apart.