Help To Buy Problem

kingstreet

citricsquid wrote: »

If so, what date is completion set for?

No completion date. It's a newbuild, so it will be "on notice" as usual.

ethank

Nothing to stop your daughter getting a lodger, but Nationwide will not class the rent she receives as income.

mickflynn39

citricsquid wrote: »

Just to be absolutely clear:

1. Your daughter and her boyfriend made an offer on a property that was accepted
2. Your daughter and her boyfriend made an application for a mortgage
3. Your daughter and her boyfriend were approved for a mortgage
4. Your daughter and her boyfriend exchanged contracts on the property with a completion date
5. Your daughter and her boyfriend ended their relationship
6. Your daughters now ex-boyfriend refuses to complete on the purchase and has walked away

Does that reflect the situation accurately? If so, what date is completion set for?

If this is correct I don't think you're understanding the severity of the situation here, your daughter is legally required to complete on this purchase on the agreed date, and if she does not there are serious financial consequences. Unless completion is set for many weeks/months in the future you're going to have a huge uphill struggle to get a mortgage approved before completion, especially given the need for a non-standard mortgage.

Here is a relevant quote regarding the consequences of not completing, on time or not at all:



http://www.actlegal.co.uk/faq/buying-house-faqs/24/

Completion is set for 22.9.14. It is too late to pull out but anyway she wants to live in the house. She just wants to make sure he doesn't have a claim on the house which he does at the moment. He has found rented accommodation and has no desire to live in the house or pay any of the mortgage. As it stands she will be paying the mortgage and we will be probably paying a big chunk off the mortgage to make it affordable for her. He will still be a joint owner even though he is contributing nothing now to the cost.

Thats why we need to buy him out so he has no further claim on the property. I understand he deserves to pay a financial penalty for the way he has behaved but I need to balance that with getting him out of my daughter's life. If he feels we are being unreasonable with money he could start to make things more difficult in an already very difficult situation. I will do my best to ensure he gets as little as possible back without causing unmanageable problems.

kingstreet

The contract will have to be amended.

The HTB PIF will have to be amended, affordability re-checked and a new ATP and ATE issued. Talk to HTB Agent Monday.

The joint mortgage application will have to be cancelled and replaced with a sole one, based on whatever you can get which the lender deems affordable.

Talk to builder. This is not going to complete Monday.

mickflynn39

Pidge_jen wrote: »

Feel awful for your daughter, but she is very lucky to have parents like you. I would echo the advice of going to see a broker ASAP, and do not hand any money to the ex until you find out whether she can have the mortgage and keep the property, as there may be hefty financial consequences that will leave her out of pocket. Does your daughter have a friend who would be willing to commit to lodging with her as it may give her more of a chance with the mortgage company if she can show she is going to have guaranteed income?

If the ex comes crawling, I hope your daughter tells him where to stick it!

I'll talk to Nationwide first then try a broker if we get no joy. The ex won't get a penny until I am satisfied he has no further claim on the property. She does have a friend who will lodge with her and he has the added bonus of being gay! I think it will be a while before she wants another serious relationship.

I doubt very much she will entertain her ex anymore but fully expect him to come crawling when he realises the huge mistake he has made.

mickflynn39

kingstreet wrote: »

The contract will have to be amended.

The HTB PIF will have to be amended, affordability re-checked and a new ATP and ATE issued. Talk to HTB Agent Monday.

The joint mortgage application will have to be cancelled and replaced with a sole one, based on whatever you can get which the lender deems affordable.

Talk to builder. This is not going to complete Monday.

What's a PIF, ATP and ATE? I've been on the HTB website and under frequently asked questions it seems to suggest that as long as Nationwide are happy to let her keep the mortgage then they are happy too. I understand his name will have to come off.

The builder, Nationwide and HTB are unaware of the current situation (the conveyancing solicitor knows). I can't see why it won't complete on Monday. As far as everyone is concerned they are both moving in on Monday as normal.

The solicitor advised me to let completion take place and then to sort the mortgage out afterwards in case Nationwide pulled the plug at the last minute.

kingstreet

Property Information Form and Reservation set out the details of the purchase on which the Homes & Communities Agency agrees to offer the Equity Loan.

Authority To Proceed is the document provided by the HTB Agent to confirm the equity loan will be granted.

Authority To Exchange is the document issued by the HTB Agent to confirm contracts can be exchanged.

IMHO the solicitor is wrong. If one of the applicants does not wish to complete the purchase, the completion should not take place and the solicitor should report to the lender. Presumably the solicitor is acting for the lender as well as for the purchaser?

This should not be allowed to complete in the current circumstances.

mickflynn39

kingstreet wrote: »

Property Information Form and Reservation set out the details of the purchase on which the Homes & Communities Agency agrees to offer the Equity Loan.

Authority To Proceed is the document provided by the HTB Agent to confirm the equity loan will be granted.

Authority To Exchange is the document issued by the HTB Agent to confirm contracts can be exchanged.

IMHO the solicitor is wrong. If one of the applicants does not wish to complete the purchase, the completion should not take place and the solicitor should report to the lender. Presumably the solicitor is acting for the lender as well as for the purchaser?

This should not be allowed to complete in the current circumstances.

They are both happy to complete. My daughter because she loves the house and desperately wants to live in it. Him, because he sees it as the best way to get his money back and walk away scot free. I also see completion taking place as the best way for my daughter to get what she wants and to minimise any costs in sorting out the mess he has caused.

silvercar

mickflynn39 wrote: »

They are both happy to complete. My daughter because she loves the house and desperately wants to live in it. Him, because he sees it as the best way to get his money back and walk away scot free. I also see completion taking place as the best way for my daughter to get what she wants and to minimise any costs in sorting out the mess he has caused.

I agree.

In the short term a lodger or bank of mum and dad can help with mortgage payments if necessary. Let the dust settle, then start on negotiating with the ex to remove him from the title deeds and mortgage.

The ex has a cost in all this, he is legally obliged to complete, he then has a joint liability for a very large debt (the mortgage). Morally his timing is bad. Don't be too quick to solve his problems.

If completion is so soon, I wouldn't be notifying anyone but letting completion occur as planned. The last thing your daughter needs financially is for the lender to withdraw the mortgage and your daughter be involved in a legal action to complete.

mickflynn39

silvercar wrote: »

I agree.

In the short term a lodger or bank of mum and dad can help with mortgage payments if necessary. Let the dust settle, then start on negotiating with the ex to remove him from the title deeds and mortgage.

The ex has a cost in all this, he is legally obliged to complete, he then has a joint liability for a very large debt (the mortgage). Morally his timing is bad. Don't be too quick to solve his problems.

If completion is so soon, I wouldn't be notifying anyone but letting completion occur as planned. The last thing your daughter needs financially is for the lender to withdraw the mortgage and your daughter be involved in a legal action to complete.

You are seeing it pretty much the same way as me.