About to exchange; buyer doesn't have the deposit

smartpicture

It would be breaking his mortgage terms & conditions though, there are rules about this now.

hazyjo

Call me cynical, but I'd think this was the plan from the start... Do they even realise that you dropping the price by £15k wouldn't help?

Keep us informed... I'd be putting it straight back on the market and seeing if the rest of the chain will wait, or at least give you a few weeks or so to find another buyer. Is it a long chain?

Jx

martinsurrey

steampowered wrote: »

This is really a question you need to be asking a solicitor, not the estate agents.



An unsecured loan would not give op a beneficial interest in the house.

But entirely agree I would be phoning the estate agent.

I suppose if the loan agreement had no mention of the property or conditions on its onward sale (such as if yuo sell the house repay my loan) it wouldn’t create a beneficial ownership.

But you would be a lunatic to lend someone money to buy a house and not have it in the agreement that the loan is repayable on sale of the relevant property.

And if the agreement mentions anything to do with the property, it is a beneficial ownership, and in fact would be a first charge over the mortgage, as created first even if not registered first at the land registry.

All in all though, the mortgage company would go mental if they found out!

HappySeagull

@Hazyjo, no I don't think it was planned, but I don't understand it. They're both doctors, so not stupid, but maybe financially naive. It could be an excuse/cover story, but they'll lose any fees they've already paid.

The buyer is supposed to be contacting me directly tonight, so let's hope he's motivated. Unfortunately, I suspect his priority will be the forthcoming baby.

[Deleted User]

Personally, I'm another person who suspects that either they thought they had the deposit but when it came down to it realised they couldn't raise what they thought they could.., OR they are playing hard ball and hoping some kind of rescue plan will be arranged by the rest of the chain.

I'm afraid just because they are doctors, doesn't mean they are of totally good intentions.., they are just the same as the rest of us mere mortals.., there are good ones and bad ones.

Personally I'd play hard ball back.., they have fees to lose, a incoming new arrival, tenancy coming to an end.., if they can raise the money they should. If they can't they aren't reliable buyers anyway. I'd be ringing the estate agents.

HappySeagull

deannatrois wrote: »

Personally, I'm another person who suspects that either they thought they had the deposit but when it came down to it realised they couldn't raise what they thought they could.., OR they are playing hard ball and hoping some kind of rescue plan will be arranged by the rest of the chain.

I'm afraid just because they are doctors, doesn't mean they are of totally good intentions.., they are just the same as the rest of us mere mortals.., there are good ones and bad ones.

Personally I'd play hard ball back.., they have fees to lose, a incoming new arrival, tenancy coming to an end.., if they can raise the money they should. If they can't they aren't reliable buyers anyway. I'd be ringing the estate agents.

It wouldn't surprise me if our EA didn't point out all the various costs associated with moving, but they were only supposed to send us viewers with validated funds. Even if they had the funds at the time, they don't now. But the timing of this is rather suspicious...

Our EA is already looking at their list of prospective viewers. They only took down the "Sold" sign at the weekend.

BTW, love the username!

HappySeagull

martinsurrey wrote: »

I suppose if the loan agreement had no mention of the property or conditions on its onward sale (such as if yuo sell the house repay my loan) it wouldn’t create a beneficial ownership.

But you would be a lunatic to lend someone money to buy a house and not have it in the agreement that the loan is repayable on sale of the relevant property.

And if the agreement mentions anything to do with the property, it is a beneficial ownership, and in fact would be a first charge over the mortgage, as created first even if not registered first at the land registry.

All in all though, the mortgage company would go mental if they found out!

Even if we GAVE them the money, it would have to specifically assigned to the house, or it could end up paying for another family emergency.

But we/they would probably be defrauding the mortgage company and/or the taxman, by artificially changing the sale price.

RAS

Do not even think about giving them the money (gifted deposits are a big problem with mortgage providers), or loaning it (almost impossible to mensure they pay it back).

DaftyDuck

Oh and never, ever, ever trust a doctor over financial matters. Even worse, never trust two of them. Worse still is trusting them on house buying.

I speak from experience here

Ionkontrol

They are pulling a fast one. End of.