House Buying Complications

sacphil

Hi All,

I'm currently experiencing complicaitons with the purchase of my first house with my partner and wanted to try and gauge opinion/garner some advice.

We found the house that we wanted to purchase around the middle of September and, after a few attempts, had our offer accepted about a week later. The vendor advised us that he was currently going through divorce proceedings (his OH had moved out already) and was looking to move relatively quickly as he had already had a new place lined up for a while - the house we are buying had sold before but the buyers pulled out last minute without giving a reason). Since then we have gone through the process of mortgage application, valuation/home buyers report, solicitors searches etc. and reached the point where we were ready to exchange contracts last week.

It was at this point that, after chasing solicitors & estate agents, we find that the seller and his OH cannot agree on the divide of funds from the sale of the house (despite numerous offers from him) and we have now been advised that it is looking more and more likely that it will need to go to court to be sorted. This leaves us in limbo, because until the funds are allocated, the current occupier of the property cannot afford to move.

We have since advised all parties that we are going to start looking at other properties (we have our first baby on the way in Feb and need to try and put down some roots), although ideally we would like to carry on with the purchase of this one if timescales allow.

Anyhow, now you've had the background I have some advice to ask and a more general point to make (there is one!).

Firstly, where do we stand if we find another property that we want to purchase. Can our current mortgage offer be transferred across to the new location (I know we will need new valuation/HBR etc.) or will we need to re-apply - in which case how will this be affected by the previous mortgage search on our credit files?

And secondly, my more general point to make, is it fair or appropriate for people to market their properties when they are not in a position to be able to sell? By this I mean, should vendors in this kind of situation be made to agree on the split of funds BEFORE the house is listed for sale. This would potentially save prospective buyers (I.E. little old me) spending large amounts of hard earned money on searches/HBRs etc. only to find that the seller is not in a position to proceed?

I'd be really interested in any advice/thoughts anyone may have!!

Pixie5740

Definitely start looking at other properties as you don't want to rely on these clowns sorting things out any time soon.


Ask your lender about transferring your mortgage to another property.


No, people shouldn't market properties when they're not in a position to sell. Some people market properties that they have no intention of selling...maybe that's how they get their kicks. However, they can and so people, like yourself, will continue to be shafted by these timewasters.

PasturesNew

It is annoying if they're agreed on the price that you can't buy it and their money pay off the mortgage, with the balance going into a holding account until they sort their squabble out. Could be worth looking into whether that's a potential route, although clutching at straws.

"Happens all the time" with divorce sales though ... they squabble.

sacphil

Thanks for the responses already guys.

We've started sifting through the usual sites/estate agents again yesterday/today so fingers crossed. We'll get onto our mortgage company and see where they stand with it all as well.

We already spoke to our solicitor to ask whether they could just go ahead with the sale and then divide the cash between them afterwards when they come to an agreement (whenever that may be!), and that would be possible if neither of them were reliant on the proceeds from the sale to move to their new property.......

It makes me so angry that people would do this. You would have though that they would have resolved this dispute ages ago (especially considering they'd already sold the property once before the sellers pulled out - back in June).

somethingcorporate

C'est la vie.

They won't be thinking rationally like you, they probably hate each other right now so even if they had previously agreed how it was split it may now be communication via solicitor only!

Good luck with your search but there will always be another house.

getmore4less

sacphil wrote: »

Hi All,

I'm currently experiencing complicaitons with the purchase of my first house with my partner and wanted to try and gauge opinion/garner some advice.

We found the house that we wanted to purchase around the middle of September and, after a few attempts, had our offer accepted about a week later. The vendor advised us that he was currently going through divorce proceedings...........

dingaling. that should have put you on alert(as should probate sale).

These are notorious for having issues

you need to find out how motivated they both are to sell and if you pulling out will encourage them move forward.

Tell them you are not waiting if they don't sell by the time you have found something else they can forget it.

moneyistooshorttomention

Surely its possible in cases like that, ie where they are arguing about "dividing the spoils" for you to go ahead and complete purchasing the house and those "spoils" get lodged with a solicitor until their division has been agreed?

That way, neither of the divorcing couple could get at the money until such time as its been agreed what their respective shares of it are.

In the process, this seller will presumably lose the house he himself is hoping to buy ....but that isn't your problem. If he loses it, he loses it and he will just have to stay with friends or rent somewhere until he gets himself sorted out with another one.

sacphil

Thanks all,

Originally we were'nt worried by the divorce proceedings as when we spoke to the vendor he was certain that this would speed things up rather than having the opposite affect. The Estate Agent backed his opinion as well, but in hindsight (such a lovely thing) we probably should have been more wary.....won't be making that mistake again.

We have already told them that we are looking for a new place and will pull out if/when we find one although that doesn't seem to have had much effect as yet.....although dare I say it, we are still 'hopeful'.....

caley

I don`t have a mortgage but i thought your mortgage in principal was valid for 6 months so you don`t have to keep applying for one everytime you find a different house. think you need to tell him that if you can`t agree a sale within 14 days we will pull out and look elsewhere you haven`t got time to wait around for people. too much of this time wasting going on now it costs money to keep being let down

sacphil

Thanks Caley

The mortgage in pronciple is valid for a certain length of time (can't remember off the top of my head how long ours is but 6 months seems correct), but as far as I've been informed, the actual credit searches etc. don't get done until you take your mortgage to the next step (I.E. the full application). Even with a mortgage in pronciple, if we changed the property we wanted to buy we would potentially have to undergo another credit search and I'm not sure how that would go so soon after the first search.

There is a chance that we may be able to amend the property details on our already approved mortgage (although we would need to provide new valuation/HBR/searches etc.). I'm waiting to hear back from the mortgage provider about this though.

sacphil

Apologies for the spelling errors by the way....it's early in the morning and I'm not fully warmed up yet! I am fully aware that I am talking about mortgages in PRINCIPLE, not a mortgage in pronciple!!