legal help please?

rammster

In the process of buying a house but my valuation being 2k less than the agreed sale price, the mortgage company has put 2000 pounds in retention (for some works that needs doing to the property). I am willing to pay that 2k out of my own pocket.

Should I confirm with lender first that they can reduce the mortgage amount by 2000 pounds or should I phone the solicitor first that this was happening. (Considering today being a friday , the chances of getting the solicitor are zilch). This way I can pass the remaining 2000 pounds into deposit to seller

The way I see it the solicitors only pen down the transaction into legal text .

Debt_Free_Chick

rammster wrote: »

The way I see it the solicitors only pen down the transaction into legal text .

Not quite - they also call the money from the mortgage company. Why not send an email to both? But definitely tell the solicitor.

dmg24

DFC is right, you need to contact both! Mortgage company first, just to double check everything, then the sol ... but quick, before they head off for their early weekend! x

Gorgeous_George

I wouldn't bother with either. That way, if you change your mind you can still claim the retained £2,000. If not, do nothing and nothing changes.



GG

rammster

Debt_Free_Chick wrote: »

Not quite - they also call the money from the mortgage company. Why not send an email to both? But definitely tell the solicitor.

Will just an email suffice for the solicitor. Or do I need to talk in detail over the phone as she is already aware that the valuation has come back 2k less than the agreed sale price.

What I am really scared about is me making that phonecall to the lender and then the solicitor coming back to me that what I have done isn't the way things are done and jeopardise the house buying process.

Debt_Free_Chick

I would have thought a simple email telling your solicitor ...

The mortgage will be 2k less than requested
The deposit will be 2k more

Your solicitor should accept instructions by email - check the Terms of Engagement letter, though.

When are you planning to exchange?

rammster

The solicitor has come back to me saying that the above is simply not possible, i.e i cant reduce the mortgage by 2000 and increase deposit by 2000.

She says this because the lender has given only 2 options according to her
1. get the defects surveyed by specialists / and get written estimates for lender to consider
2. that the seller reduces 2k straight off and then the purchase progresses without report. According to her there is no 3rd option

She also thinks its ridiculous for seller not allowing the specialists to look at the property as it is necessary to be arranged as I need to comply with the conditions of my lender.

She has told me that she will have a word with seller's solicitors who will in turn have a word with seller regarding this.

Meanwhile I have explained to my solicitor that the lender is willing to knock off 2k from the mortgage and proceed without the reports. but the solicitor insists that I cant simply pay 2000 pounds cash to the seller.

So as it stands everything has been put on hold.