Buyer can't complete

Ames

We were due to complete tomorrow but my conveyancer called this afternoon to say it won't happen. She said it was because the buyers mortgage application didn't have the house valuation on it so funds couldn't be drawn down but couldn't give me any more details. Is this a big deal? Will it cause a huge delay?

My dad and sister are buying out my half share of my late mum's house, We agreed a valuation on the house of 145k, paying over 98k for my share plus debts, and getting a mortgage of 100k.

I'm worried that the issue is really that they've taken on extra debt since getting the AIP and have been totally declined, but that could just be paranoia due to my mental illness.

TBagpuss

If this is your dad and sister buying your share of the house, can you ask them directly what the hold up is?

Do you have a linked purchase?

Ames

If linked purchase means a chain then no, they're getting a BTL mortgage, dad owns, sister and I both rent.

I can't ask them, we're estranged and I can't trust a word they say anyway.

DTDfanBoy

Have you already exchanged or were you due to exchange and complete tomorrow

Ames

I don't know. I signed the contract weeks ago, and I'm told dad and sister did too. I don't know if they've been exchanged yet though.

G_M

Well until you know if you've exchanged no on can tell you what will or might happen!

Surely if you'd exchanged Contracts you would know?

indeed, how can you possibly not know either way....??!

Ask your solicitor?

Ames

Because I've never bought or sold a house before and I'm completely out of my depth with all this stuff. I've been leaving everything to the probate solicitor and conveyancer as far as possible.

I'll email the conveyancer in the morning. Is there anything else I should be asking other than whether or not we've exchanged?

pjread

I'd guess either they can't get finance or they've not actually sorted the valuation out yet... From the sounds of it, you should call your solicitor and ask them to ensure completion ASAP. If completion is totally off the cards, I'd hope there's a 10% deposit with someone's solicitor that you'd be entitled to...?

TBagpuss

If you have not exhcanged, then there is nothing you can do as they are not contractually obliged to buy. You would need to speak to the probate lawyer about getting the property put on the market to sell. The executors have a duty to get in the assets and distribute them so even of your dad or sister is the executor they cannot hold up the sale indefinately for their own benefit.

If you have already exchanged then they are contractually obliged to complete and you may be entitled to keep their deposit and to recover any consequential losses you have from them. This is a specilised area and your conveyancing solicitor may not be able to advise about all of the detials.

The first step is to find out from your solicitor whether or not you have exchanged, and go from there. As this is a probate sale to 2 of the beneficiaries it may well be that the plan was to exchange and complete simultaneously.

Ames

It seems it's something to do with the purchase price going up by a grand because dad and sister want their legal fees added as a debt to the estate, which I've had to agree to to stop the sale falling through.

pjread, there's no deposit being held.

TBagpuss, I'm sole administrator. Only me and sister are beneficiaries, not dad.

As above, no deposit to keep.

Waiting to hear back about whether or not we've exchanged.

Thanks for all the replies.

Ames

Heard back from the conveyancer, we haven't exchanged because dad and sister are insisting on exchange and completion being at the same time.

So true to form they've made sure they have me over a barrell and can insist on whatever they want and I have no choice but to agree.

Putting it on the market again isn't an option. We had one offer in 18 months for 14k more than dad and sister are offering, sister turned it down and didn't tell me for weeks that it had been made, and they've done various things to lower the value of the house.

Plus if I don't agree to their demands they'll go to court to have me removed as administrator and report me for benefit fraud as I'd be deliberately depriving myself of capital.