House sale falling through after exchange of contracts

iammumtoone

Jon_B wrote: »

What's remarkable is how reasonable and accommodating the chain are being. Rather refreshing.

What else can they do? its only a 2 week delay. I don't suppose anyone in the chain wants the hassle and expensive of having to sue their buyers, let alone have to start again with putting their houses back on the market and losing the house they wanted to buy

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mrschaucer

"No idea but the EA said a bridging loan will cost her 5-8k. In the short term that seems allot - but if she pulls out and breaks the chain after we have exchanged - she is facing 70k + in law suits"


And she will hopefully be aware that if she has another property and is late completing on this BTL (ie if she fails to complete by your new deadline of 31st March) she will be liable for the additional new 3% stamp duty applicable from 1 April! Might just concentrate her mind. Hope you get it sorted. Do keep us informed.

stator

franklee wrote: »

You make it sound easy but winning a case and actually getting paid are two different things. Given the OP is in a chain the bill could get quite big and if the OP's buyer cannot afford to pay it all the OP gets left to make up the shortfall. Besides which how does the OP's cashflow work in the meantime. I wouldn't go there unless there was no other alternative. I'd have thought the best outcome for the OP is to get the sale through within the ten days before others up the chain can start rescinding contracts.

Indeed, the risks are still there for everyone involved.

What happens if the person at the bottom declares bankruptcy?

It's best if they either complete quickly or start voluntarily unwinding the whole processes. A huge sue ball will be fun for no-one except the lawyers who pocket the fees.

If I were the OP I wouldn't be letting some random builder into my house.
But I might agree to a legitimate professional company doing the works, subject to your solicitor getting an agreement in place.

Also remember not to believe or act on anything an estate agent says. If their lips are moving....

silvercar

If I were the OP I wouldn't be letting some random builder into my house.
But I might agree to a legitimate professional company doing the works, subject to your solicitor getting an agreement in place.

I wouldn't. Allowing the work to commence guarantees a delay, refusing restricts the solutions that are available and means the buyer is moving to source alternative finance quicker.

AnotherJoe

How on earth is the OP meant to distinguish between "some random builder" and "a legitimate professional company" ?

They should simply insist the buyer completes or cough up damages, which as said will be substantial. They dont need to get involved in a drama over a kitchen and bathroom being refitted why should they suffer that disruption when its all down to the OP who can simply have a few weeks of bridging loan payments rather than impose on the OP.

And as someone else said, refusing to let builders in will enable them to focus on a workable solution. And ensures the OP doesn't get involved in wrangling over what happens to the new works. Supposing something breaks or is broken in the purchasers new kitchen and the buyer blames the OP?? The buyer needs to come up with a solution that is entirely down to them and not involve the OP in the drama.

Since the buyer has managed to get a BTL mortgage that indicates they ought to have enough equity in their residential property house to be worth suing.

ruggedtoast

stator wrote: »

Indeed, the risks are still there for everyone involved.

What happens if the person at the bottom declares bankruptcy?

It's best if they either complete quickly or start voluntarily unwinding the whole processes. A huge sue ball will be fun for no-one except the lawyers who pocket the fees.

If I were the OP I wouldn't be letting some random builder into my house.
But I might agree to a legitimate professional company doing the works, subject to your solicitor getting an agreement in place.

Also remember not to believe or act on anything an estate agent says. If their lips are moving....

The person at the top will enjoy the sue ball.

They are king of the ball.

Daletoon7

Update - had a builder in to look at the kitchen and bathroom. They say there is no issues but have prepared a quote for my buyer to put in a new kitchen and bathroom. resurvey tomorrow so hopefully they change the retention to either 10,000 retained until work done or even better lift the retention. Then we may be able to complete before 31 March

Hoploz

The mortgage co would have put the retention on because they didn't want the deal. It would not be common practice to go in and do renovations before the mortgage completes, so I feel the lender will not be happy to proceed.

The buyer needs to find another lender. I think you said there's another valuation survey booked in already, so hopefully they will do the decent thing and just get the place bought so they can fanny around with it to their hearts content once they have the keys.

AnotherJoe

Good luck Daletoon7 !

j_yorks

Good luck!