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Completion halted due to IVA charge on house
flashnazia
Posts: 2,168 Forumite
Hi
I'm writing on behalf of my sister.
She was about to complete on a house as a FTB. All seemed fine.
The vendors are separated. Doesn't sound amicable. The wife was the one arranging the sale.
So things are running smoothly (we thought). Vendors moved out, no chain etc.
The money went into the solicitor's account but then bang. Solicitor says there is an IVA charge on property. It's related to the husband and apparently wife didn't know.
The house cost them 118k in 2006. My sister was going to purchase for 98k.
That's all I know. I think this sale won't be able to proceed (hope I'm wrong). She's going to lose her fees.
Is there anything she can do?
I'm writing on behalf of my sister.
She was about to complete on a house as a FTB. All seemed fine.
The vendors are separated. Doesn't sound amicable. The wife was the one arranging the sale.
So things are running smoothly (we thought). Vendors moved out, no chain etc.
The money went into the solicitor's account but then bang. Solicitor says there is an IVA charge on property. It's related to the husband and apparently wife didn't know.
The house cost them 118k in 2006. My sister was going to purchase for 98k.
That's all I know. I think this sale won't be able to proceed (hope I'm wrong). She's going to lose her fees.
Is there anything she can do?
"fools and fanatics are always so certain of themselves, and wiser people so full of doubts." (Bertrand Russell)
0
Comments
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Her solicitor should have ensured before exchange that unencumbered title would be available on completion and that clearly is not the case. It sounds like there may be mortgage negative equity as well as the second charge, looking at the £118k/£98k situation.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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isnt this sort of info ironed out etc long before this stage?!Never, under any circumstances, take a sleeping pill and a laxative on the same night.0
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Usually, the vendor's solicitor will ensure the vendor has spoken to any chargeholders and established they will be happy to lift the charges on completion day to allow the sale to go through.
If the vendor has not done so, this is going nowhere, with the purchaser unable to complete and out of pocket and unlikely to sue the vendor for breach of contract as they probably have nothing.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Her solicitor should have ensured before exchange that unencumbered title would be available on completion and that clearly is not the case. It sounds like there may be mortgage negative equity as well as the second charge, looking at the £118k/£98k situation.
That's what I was thinking unless the charge was slapped on the house at last minute? If not I think a reduction in legal fees are in order.
Will hopefully know more later."fools and fanatics are always so certain of themselves, and wiser people so full of doubts." (Bertrand Russell)0
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