Remortage on our new build

Cath_Devon_12

Hi me and my partner and in a bit of a sticky situation and unsure what to do! Advice or help would be greatly appreciated.

We are in the process of buying a new build property off plan, it is due to be completed in October. We have paid £500 to secure the plot we then had 28days to complete. The completion day is tomorrow Friday 8th Aug.

The solicitor has sent us all the details and we are happy to complete, the 10% deposit along with the signed contract is with the solicitor. In order to buy the property we have remortaged my partners house (which he owns outright, no mortage). This has all been agreed with the post office, and they have sent the details to the solititor but they only done this on the 28th July and now our solititor is advising us not to complete until she has completed all the checks regarding the remortage, which may take upto a month.

However if we don't complete tomorrow we will lose the property, plus have to pay the solitior for the work she has completed so far. If we go ahead our solititor has advised us, if for any reason the remortage doesnt go through we would lose our 10% deposit and risk being sued by the builders.

My question is, what checks is the solititor doing on our house that is being remortage that could result in us not getting it? Is it a risk worth taking?

ethank

Have you spoken to the builder? They always say 28 days, but most are flexible if they believe everything is moving forward.

kingstreet

Cath_Devon_12 wrote: »

Hi me and my partner and in a bit of a sticky situation and unsure what to do! Advice or help would be greatly appreciated.

We are in the process of buying a new build property off plan, it is due to be completed in October. We have paid £500 to secure the plot we then had 28days to complete. The exchange of contracts day is tomorrow Friday 8th Aug.

The solicitor has sent us all the details and we are happy to exchange, the 10% deposit along with the signed contract is with the solicitor. In order to buy the property we have remortaged my partners house (which he owns outright, no mortage). This has all been agreed with the post office, and they have sent the details to the solititor but they only done this on the 28th July and now our solititor is advising us not to exchange until she has completed all the checks regarding the remortage, which may take upto a month.

However if we don't exchange tomorrow we will lose the property, plus have to pay the solicitor for the work she has completed so far. If we go ahead our solititor has advised us, if for any reason the remortage doesnt go through we would lose our 10% deposit and risk being sued by the builders.

My question is, what checks is the solititor doing on our house that is being remortage that could result in us not getting it? Is it a risk worth taking?

I've amended the word completion to exchange, as we are talking about the point you become legally obliged to buy, which is exchange of contracts.

Completion will take place when the money and the keys change hands, when the build is finished.

As ethank has said, although the exchange of contracts target is 28 days, many builders will not be too concerned if it is not met to the day, because they understand the mortgage process can be lengthy.

In addition, I cannot see what will take a solicitor a month after an offer is issued. There is very little extra work for a solicitor to do on a simple remortgage, so why they should need more than a week or so is beyond me.

Ask them to carry out these onerous checks as fast as they can so you can exchange contracts as soon as they've finished and keep the builder updated regularly.