Solicitor exchanged before mortgage valuation back

marthaw4

I wonder if someone might be able to help me. I've exchanged on my current property with no problems. Last Friday, my solicitor said we were ready to exchange on my NEW property, which is then what happened.

However, this morning I've heard from my bank manager who says that the mortgage valuation survey has only come back today and it has revealed some movement on the house and they want to send a structural surveyor in.

I had my survey done and nothing onerous came up - it identified a few cracks, which I spoke to the surveyor about, but nothing bleak. However, I now have a nail-biting few days until the structural survey is back.

I am terrified that I will lose my deposit and/or won't be given the mortgage offer.

What are my rights? I have an email from my solicitor sometime last week/week before saying that she had received the mortgage offer subject to the mortgage valuation, but it would appear she didn't wait for this to come in. I had no idea otherwise I would never have exchanged.

Any advice would be gratefully received. Thanks

G_M

Did you instruct the solicitor to Exchange>

Did the solicitor ask to Exchange and did you agree?

marthaw4

I did instruct her to exchange but surely the onus is on her to only allow me to exchange once she's satisfied all the relevant paperwork and information is in place?

A mortgage valuation offer is a big bit of relevant paperwork, surely?

SpottyWellies

But surely you too were waiting on hearing what the valuation said? I remember that part being a nail biting wait as it meant yes or no for the mortgage, surely you would of noticed if you had not heard? I couldn't imagine only my solicitor knowing what it was meant to of said and myself not worrying about it.

I am not saying any of this is your fault, I just honestly do not understand how you, yourself did not notice that the lender valuation was not back?

marthaw4

I see what you're saying, but no - I'd signed paperwork at the bank saying it was approved subject to survey but that as my survey had been fine they were sure their's would be, too. So I guess I kind of read it that it was all going through smoothly. And when I asked if there was anything else we needed and that I could chase, the solicitor said to me that all she was waiting for were the local searches and something about the boiler. I didn't for a minute think she was also waiting for the mortgage valuation report.

gogo2013

Without local searches report, you still instructed the exchange? It is unprofessional from my point that your solicitor even missed the mortgage valuation report. But I don't know legally what responsibility she should take.

G_M

You employ a solicitor. They work for you. They do what you tell them.

You instruct them to Exchange, they Exchange.

Having said that, yes, they have a professional duty to advise you / caution you where relevant - and this seems relevant.

If they are also acting for the mortgage lender (are they?) then they have duties to the bank too, as the bank is also their client.

marthaw4

No, the local searches were back, and it seemed everything else was, but not the mortgage valuation report. I'm not sure what legal responsibility she should take, but my assumption would be that a conveyancer should be there to ensure that all the relevant paperwork is in place before exchange of contrats occurs. As a layperson, I'm not sure that that is my responsibility, but this is what I'm trying to discern.

SpottyWellies

I really feel for you as this must be so stressful, it does seem like something has somehow gone horribly wrong here, I really don't know what the next step would be, hopefully someone will be able to advise you soon!

marthaw4

G_M Yes they are also acting for the mortgage lender. They are acting for both of us in this instance.
I emailed her previously to ask if there was anything else we needed in order to exchange and all she said were the local searches and something about the boiler - at no stage did she say 'the mortgage valuation survey'.

kingstreet

Presumably, the solicitor has also exchanged without a mortgage offer?

BTW please don't describe a "mortgage report & valuation" as a "survey" the two things are completely different and can cause confusion when the terms aren't used correctly.