Heavens above ... heading for catastrophe

DoubleOhScrimp

Buying my first house. Set to complete on Friday. Was supposed to cash in £4500 of investments this morning to make final completion funds. Only to be told ***Drumroll*** that it will be next week before those funds are in my account.

Phoned solicitor ... he said I would be liable for 4.5% interest on the purchase price prorata. I also have to be out of my rental by Thursday next week so dont exactly have much wiggle room.

I'm in a flat panic! :eek::eek:

Cant believe I've put myself in this position despite trying my damnedest to get everything right.

Guest101

Cant anyone lend you £4500?

Also your solicitor was quite inept in not following up fund locations with you.

But yes you could be liable for some interest. Remember its 4.5% annual rate, not daily or anything so you wont be paying out a huge amount extra

Lemoncurd

Fingers crossed it will come through sooner. I had to do similar and was told to allow 14 working days but that it should be in my account much sooner.

ian103

can you not get the money faster by paying a penalty? we were given the option recently when cashing in investments - fortunately ours weren't time critical. From memory the penalty was £20-25 so wouldn't have been a major issue.

DoubleOhScrimp

Guest101 wrote: »

Cant anyone lend you £4500?

Also your solicitor was quite inept in not following up fund locations with you.

But yes you could be liable for some interest. Remember its 4.5% annual rate, not daily or anything so you wont be paying out a huge amount extra

Waiting for dad to return my message on his mobile. "Hey dad ... I £!*!£*!£% up can you lend me £4.5k for a week". This all went down about 15 minutes ago.

Its not the solicitors fault. I should have checked how long the encashment period of my investments were. Bloody hell.

The interest penalty isnt the worst its more that I must clear out of my rental by Thursday or presumably face an extra months rent.

Deeply frustrated that I've tried so hard to get everything right and then let this happen.

Fellow FTBs ... don't do what I just did ... get your funds cleared WELL in advance.

*bites nails*

DoubleOhScrimp

God another thought just struck me. What if my mortgage company sees all these funds suddenly pop into my account with no explanation. *shudder*

Dave_the_Ginger_Cat

Even if you bank with the same firm and they choose to look this week, they will be expecting you to be collecting funds up. £4.5k into a current account a week before completion won't surprise them at all

DaftyDuck

Depending what the investments are, it may be the transfer to bank that occupies much of this time. Two things may be possible, depending on investment type. One is an expedited transfer of funds to the bank. You would be charged for this, and it would probably cost more than the interest (I was charged ~£70 for a fast-track transfer of funds recently while winding up some of my ex-ma's affairs). Another possibility that might shave a day or two would be to have the cashed assets transferred directly to your solicitor's account rather than yours.

Really not sure either are viable, but they might be worth discussing with the investment co. Just trying to think laterally for you.............

I agree with others: the mortgage company won't blink at this money transfer... they's be more concerned by a "loan from dad", if they knew.

Not easy, but try not to panic. These things tend to work themselves out with less hassle than one imagines.

G_M

Just to add to the horror, your vendors may be able to claim any costs they incur as a result of your not Completing on time.

This in addition to the 4.5% interest charge.

Suppose THEY are relying on this £4.5K topay for THEIR new home. They can't Complete either, so THEY will have to pay a penalty - which they can pass on to you.

If it is a long chain, there could be many people in this position.

Some of them may have booked removal firms, which may charge cancellation fees. More costs incurred because of.... errr..... you.

If dad can't help, can you get a bank loan? Do you have a credit card? What's the limit?

Newly_retired

Your funds may still come through in time, but it is a lot to risk.
I hope your dad can help, or you can use your credit card.
You could try getting the investment sent by Chaps, for a fee, or straight to solicitor client account instead of via yours.
I am in the opposite position.
After a previous similar panic, our completion dates have been put back 3 or 4 times now. Meanwhile the investment funds paid out earlier than expected,
a complaint letter, and the funds are all ready, but losing interest!

DoubleOhScrimp

DaftyDuck,

Ive phoned and tried to expedite. No go.

G_M

Dad is literally driving to his bank now. I have >10k available on cc's but surely I cant do that as that would be mortgage fraud?! You cant use cc money to pay for a house deposit or any other loan for that matter???