Bank Not Releasing chaps (Property purchase) Payment

gg234

Hi,

We are in the process of buying new build property and we have exchanged contracts on nov 2015 now we have received 2 weeks completion notice from our builder unfortunately we were not able to complete our existing flat sale (Sale still going through).We have asked our friends to give money to deposit remaining amount to complete the transaction.When i went to bank they have asked questions and i have answered where the money came from supplied friends bank statement to support the money still they are not happy to release my chaps payment to my solicitor

I have also supported documents why we have requested money from friends.

Is there anything i can provide the from my side to release these funds

Thanks for your help

betmunch

Most banks do not accept a loan from friends as a source of deposit.

The best thing you can do is get the sale on your flat completed ASAP

AnotherJoe

Yes you'd need to see your solicitor and might need to get your friends to state this is a gift without any reservation.

This is very non standard, normally you'd arrange matters so that your property sale exchanged at the same time as your purchase. What are your plans if your flat sale doesn't go through at all ? I'm presuming it hasn't even exchanged yet ?

You could be needing a bridging loan, if you can get one.

kingstreet

Some lenders only accept gifts from blood relatives, not friends. However, this sounds like a loan until your property is sold. This is potentially just as unacceptable.

Your new mortgage will normally be dependent on your old mortgage being repaid on or before completion. Was this delay agreed, or is there no mortgage?

Have you exchanged contracts on the newbuild without exchanging contracts on your sale? If so, why?

davidmcn

Not sure the above answers are relevant - this appears to be the OP's bank having money-laundering concerns about the cash passing through their account, nothing to do with mortgage lending criteria (though that will be the next problem).

kingstreet

I suspect solicitor has reported source of deposit and possibly existing mortgage not being repaid prior to completion and this has caused the case to be returned to underwriting.

If it was money laundering requirements it would be between client and solicitor, not client and lender.

Edit - sorry, wrong end of the stick. You think it's the deposit money going from the client's account, rather than the mortgage money to the solicitor.

Possibly.

AnotherJoe

davidmcn wrote: »

Not sure the above answers are relevant - this appears to be the OP's bank having money-laundering concerns about the cash passing through their account, nothing to do with mortgage lending criteria (though that will be the next problem).

Re-reading the OP you could well be right, and I agree, next step, the mortgage company / solicitor being unhappy about the source of the funds being a loan.

betmunch

I read it as he has asked friends to add to his deposit as his sale isn't going through in time.


Hes told the bank and they are not happy with this so wont release the money.


Maybe the OP should clarify this