mortgage lender has played a blinder

bigduckinasmallpond

Hi there folks don't know if this is the right section or not but here goes.

Me and the wife are first time buyers seen a property liked it ticked all the boxes, went and spoke to a lender advised them there was a mine close to the house, the estate agent showed us a copy of a mining report showing the mines got a mortgage in principal as the lender was happy to consider the mines, all good put our offer in and was accepted, we then had the mortgage offer all great, the wife started packing things, the estate agent sorted the solicitor for us and the Conveyancing, had all searches done and house was valued,by the lender they valued it a a grand less so not to bad, so all things going great, was then advised the mining search we had done wasn't specific to the property and a coal authority one was needed, got that done had the contracts turn up to sign then had a call from the lender saying the mine according to our report is under the house not at the side and so isn't worth the value and they will only lend a %age on it, but looking at the 2 reports mine and the one from the estate agent the mines are in the same place as they have the same numbers on it, but the pictures are of different scale.
Now as I've had the final statment from my solicitor saying they have received the full sum from the lender and now need our deposit and there fees.
Can the lender do this and if it all falls through can I clam any of the money back I've already spent on searches etc..?
Any advice is appreciated with thanks.
A worried buyer.

Thrugelmir

bigduckinasmallpond wrote: »

Now as I've had the final statment from my solicitor saying they have received the full sum from the lender and now need our deposit and there fees.

Are you sure they've received the funds? The solicitor may not be aware of the change to the mortgage offer.

bigduckinasmallpond

Thrugelmir wrote: »

Are you sure they've received the funds? The solicitor may not be aware of the change to the mortgage offer.

Well according to the statment letter it says amount transferred then amount received, spoke to the solicitor today and they were not aware of the change to the mortgage offer and they advised not to sign the contract, but we have already signed it just not posted it yet as the lender told us to hold off signing it and not to post anything to the solicitor.
I am going to call the lender tomorrow to see if I can get the decision reversed if the mine is not under the property, hoping a interpretive report from the coal authority will confirm this.

hcb42

you need to ring the lawyer tomorrow and find out exactly where you are at.

bigduckinasmallpond

hcb42 wrote: »

you need to ring the lawyer tomorrow and find out exactly where you are at.

We are at the point of signing contracts and getting a moving date sorted, solicitor is now asking the seller where the report has come from and if they now have any more info on the location of the mines or if the seller wants to contribute on further mining reports so the sale can be saved, the solicitor also asked if I wanted to pull out of the sale.

hcb42

not sure what you are asking tbh?

anything you spend prior to exchange, you cannot claim back, to answer the main question in your first post.

not sure how they have the full monies if you havent exchanged either.

kingstreet

The only report a lender will rely on is a Coal Authority report done on the specific property within three months of the mortgage application.

If the mineshaft, adit or entry is within 5m of the property, a lender will usually advance only upto 75% of the purchase price/value as it is considered riskier lending.

An estate agent represents only the vendor. Your interests have not been well served by accepting the advice and information provided by someone who does not have your interests at heart.

I suspect you will be unable to proceed with this purchase. Given the possible issues insuring the property and future resale issues, this may be a very lucky escape.