Offer-Exchange-Completition & Potential redundancy

nickjdunkley

Hi all,

As we near the final stages of our first house purchase (Abbey mortgage offer, survey & evaluation complete) my fianc! has reason to believe the company she works for may be going into administration. Worst case being that she looses employment.

We are at the point where we would exchange contracts in the next week or so. I would appreciate some advice on how best to approach this situation.

My wage would (just!) cover us for the mortgage and outgoings. Our families would be happy to support if we need & also support in allowing us to complete and exchange as quickly as possible by paying rent (currently rent with 60 days notice not served as waiting for exchange before give notice).

If my fianc! were to loose employment, she would be able to obtain a similar job title and pay in an offshoot company.

Advice appreciated:beer:

gazfocus

It's a tricky one because your fiance doesn't 'KNOW' she is about to lose her job, she just suspects it.

There have been many times when I've thought a company I worked for looked bleak, but they pulled through and several years on, they're still going.

What makes your fiance think that the company may be going into administration? Has she been told that this is the case?

ethank

I would go ahead with the purchase, and not inform anybody until I formally was told that the company was in administration

TBagpuss

If you are confident that ou will be able to afford your new home on just your income if you have to, then you can go ahead - I don't think you have any duty to disclose what it, at present, a suspicion.

If your fiancee is told officially that the company is in administration and that she is at risk of redundancy then the situation may change.

gazfocus

TBagpuss wrote: »

If you are confident that ou will be able to afford your new home on just your income if you have to, then you can go ahead - I don't think you have any duty to disclose what it, at present, a suspicion.

If your fiancee is told officially that the company is in administration and that she is at risk of redundancy then the situation may change.

Exactly. Even if the company goes into administration, there's nothing to say your fiance's job is on the line so until she's told she's out of a job, I think you'll be fine.

Wh05apk

Strictly speaking once you have "official" notice you should advise the lender, who more than likely will withdraw the offer. You should consider carefully whether you proceed, have you got any redundancy cover in place?

nickjdunkley

Thanks for your input all - appreciate the immediate feedback

It is clear enough that ahead of it being official (no letter outlining this), her boss has alluded to making an offer of purchasing. Potentially another company too.

So within the next two weeks or so, she 'could' have a new owner who may still make her redundant? I am simply thinking worst case.

That would mean between now and exchange (within the next two weeks) I could end up having the mortgage offer pulled and a 10% liability to fore fill?

I was advised by my current mortgage advisor that redundancy insurance is not being advised. Would it even cover between now, exchange, completion?

EDIT**
We have not exchanged, we are likely to in the next 2 weeks. We had planned 45 days (we have 60days notice on rent) between exchange & completion but this may change to ASAP for the topics reasons.

jackomdj

Assuming you think you are ok I would go ahead, but I would exchange and complete on the same day to stop your mortgage from being pulled between the two.

gazfocus

As jackomdj says, I would go for exchange and completion on the same day. I would generally do this anyway because there's nothing to stop the mortgage lender withdrawing an offer after exchange of contracts, at which point you lose your deposit.

Yorkie1

Slight aside, but why do you think you have to give 60 days' notice on your rent? Are you in England / Wales? If so, are you still in your fixed term or on a monthly rolling contract?

nickjdunkley

OK - so today we heard this coming Wednesday they will be confirming the status of the company.

If the company goes into Administration - I inform the MA/Bank, is this likely to affect the Mortgage or we better off sorting out a new job now (same job role and money(+))? Tbh I dont understand her position when they do go into administration, is she still employed?

Our rental agreement states 60 days notice to be served at any time. No getting out of that! We have been here for a year so past the 6 month minimum term.