Funding of residential mortgage - grounds to force completion?

jayson043

After the 9th March when your BTL mortgage offer expires you won't have a deposit, therefore the developers will be interested in how you will fund the residential part of the mortgage. As you state, the BTL equity will be your deposit. Are you going about this the right way? Personally if you think this is complex situation, how will you manage being a landlord and handling the finances around that. You should consider backing out, reconsider if this is right for you now.

Thrugelmir

Blackter wrote: »

They are not prepared to compensate either, even though after completion their scaffolding will be on our land.

How much are you seeking for this inconvenience?

Blackter

I said the situation was complex, not the finances. The deposit is currently with my solicitor, this is being funded from savings. The rest of the money for the residential mortgage is coming from the BTL.
I always maintained that I never wanted to move in with the scaffolding there. They kept on hassling me, and very convincingly stated the scaffolding would be down by the end of February or pretty soon after. I agreed to an exchange date of 20th February with completion on 27th February and they would have comp'd us all the extras a total of £1700 (obviously wouldn't cost them that much, so I thought win-win). The 20th came and went, my solicitor was getting nowhere with their solicitors. There was a problem with gas supply to the house. The NHBC were due to sign the house off on Wednesday, then Thursday, which was when they asked me for the letter (so the NHBC were obviously sceptical about signing it off). Then on the 27th February itself the NHBC inspected the house and in light of letter refused to sign it off. I had clarified earlier in the week that the compensation offer would expire after 27th February, even though it was them who failed to meet the deadline! My patience with the scaffolding expired along with the offer, as it's still there and they are now saying it will be at least 2 weeks before its removed.
Even if we complete on the BTL mortgage on the 9th March, it doesn't then follow that we would complete on the residential mortgage, we could move into temporary accommodation. We thought until about 24th February that we were completing, so have only just started to reapply for BTL mortgage, this could take 2-3 weeks, so there be a period of time where we are not covered, however we could take out a bridging loan.

jayson043

Ok, do you need the money raised from your BTL to proceed with the residential mortgage? if so that's why they would be interested in you getting the BTL before the offer expires. Perhaps the wind and rain from the last few days has affected the scaffolding? It's to be expected things get delayed but you are against deadlines. So either you can delay and apply again for a new BTL etc or just accept the scaffolding and move in! Don't make the situation complex by wanting everything your way. Compromise!

Thrugelmir

jayson043 wrote: »

Compromise!

Sums matters up succinctly.

Thrugelmir

Blackter wrote: »

Even if we complete on the BTL mortgage on the 9th March, it doesn't then follow that we would complete on the residential mortgage,

When does your tenant move into the BTL property?