delayed completion and drawdown

kingstreet

Did your friend use a broker who can make representations with the lender via their Business Development Manager, or go direct?

If the former, get the broker's view and ask them to speak to the BDM

I have not heard of this before as I have never had these circumstances happen to me. I have heard of people having completions delayed and money returned, but know no more than that as the stories were anecdotal only.

Other than asking each lender, how about asking the solicitor concerned if they have ever come across another lender being unable to go more than 28 days without re-sending funds?

TBH I've been a member on here for 3 years and a broker for 30 years in August and I've never come across this before, so this is very, very rare.

nigelpm

All good questions.

He seems to have struck a compromise. They will waive survey fees and put it through fast track for any re-application.

On a positive note it sounds like there's more chance of the transaction completing in the next two weeks anyway.

Thanks for taking the time to reply.

Thrugelmir

nigelpm wrote: »

I meant had you heard this being any bank's policy in the situations where you had heard of funds being returned as completion didn't happen - and how rare is this?

Can't see what the issue is. If the funds remained draw down then your friend would be incurring interest. Given there appears to be no completion date set then quite rightly the funds were returned.

nigelpm

Can't see what the issue is. If the funds remained draw down then your friend would be incurring interest. Given there appears to be no completion date set then quite rightly the funds were returned.

Yeah, the issue here is over the 28 days not the interest

Richard_Webster

Basically he was all due to exchange (17th feb) and complete on 19th feb

That's the heart of the problem. If he hoped to exchange on 17th and complete on 19th then if I was dealing with it I would have laid it in good and thick with him what a risk he was taking (in wasted costs of drawdown etc) and how it would have been much more sensible to go for a later completion date, given that exchange hadn't taken place 2 days before. (Typically lenders take about 5 working days to produce the money after request, but sometimes it can be quicker.)

If he insisted on this kind of cliff hanger approach then his solicitor would have no choice but to draw down the funds . If he had left longer between exchange and completion then draw down could have comfortably been sorted after exchange.