Release of funds for completion

j_yorks

We are due to complete on our purchase on 29/3.

Our mortgage is with Barclays/Woolwich.

My idiot conveyancer told me a few days ago they'd had confirmation of release of funds so I assumed this was fine. I phoned Barclays today just to check about the direct debit payments and to check funds are set to be released.

They told me that my solicitor had reqeusted on the certificate of title that funds would be released on 28/3, a day in advance. Obviously this is a bank holiday so Barclays had contacted them - apparently on 10th March - to say that this would not be possible, and to request my authorisation (via the solicitor) for release on 29th March. They were apparently still waiting for this, so goodness knows what would have happened if I hadn't phoned today.

I have given Barclays my authorisation so apparently the funds will now be released on the 29th.

The woman at Barclays said completion on the day of release of funds should still be fine, but they will just have to run final checks on the morning of 29th and then it sholud be ok.

Can anyone advise me as to how likely this completion is to go ahead on the 29th if funds are only released by the mortgage broker that morning?

Thanks.

MortgageMamma

If everything is in order regarding the lenders and solicitors side of things its highly likely that you will complete that day, but you need to give your conveyancer notice that you are aware of their error and are not happy

j_yorks

Oh, I've sent them an email and will be on the phone at 8am on Tuesday!

Just wasn't sure what the mortgage provider meant about doing their final checks on Tuesday morning? They said they'd let the sols know if there were any problem.

There's no chain or anything so it's a fairly straightforward purchase.

I'm sure the solicitor will say it's the mortgage lender's fault - and for all I know, it might be!

j_yorks

Well, I've just spoken to someone in my conveyancers office who says that according to their system, they spoke to the lender on 15/3 who said they'd release the funds on 28/3. This seems hugely improbable and I don't see why they didn't realise this.

Anyway, funds are apparently now due to be released on 29/3 so all I can do is cross my fingers (and phone them then).

MortgageMamma

Best of luck, hope it goes smoothly for you.

j_yorks

Sorry for a further question - I'm just really worried about this and obviously not able to find out much concrete information until Tuesday.

The CML handbook says Barclays require 5 working days notice to release funds - is it therefore possible that they might require 5 working days from Tuesday to sort all of this out?

Obviously we may incur additional costs if completion is delayed, I have read lots of threads on here saying that we would not be personally liable as obviously it's not our fault, but how does this actually work in practice? Thanks to anyone who knows more about this than I do.

j_yorks

Also, does anyone know how the mortgage company transfer the funds to my bank? Is it even possible to transfer them same day? I thought CHAPS was used and would always get there the next day? Or can it be done by BACS since it's a business transaction?

sam2015_2

The funds goes through conveyancer.
My lende(not barclays) is releasing the fund on the completion day due the short notice. Fingers crossed! They asked for 5 days notice but we gave 4 and they said ok. I guess they are aware of the bank holidays.
Have you got a MA? Speak to him/her. Some times they have access to the completion department and may be able to find out more.

In my opinion.....if your conveyancer set the completion date and didn't do enough to get the funds released on time then they'd have to cover he additional costs.

Good luck.

j_yorks

I know the funds go via the conveyancer. What I am asking about is the notice required for release, and time taken for transfer. We obviously don't have 4 days - in most respects Barclays have had3 weeks' notice so hopefully it should be ok, though.

We do have a broker so I had planned to ask them to help on Tuesday morning as well. They've always been very helpful.

sam2015_2

j_yorks wrote: »

Also, does anyone know how the mortgage company transfer the funds to my bank? Is it even possible to transfer them same day? I thought CHAPS was used and would always get there the next day? Or can it be done by BACS since it's a business transaction?

From Barclays website...
"CHAPS guarantees same-day payment so long as the instructions are received by 2pm on a working day. There’s no limit to the amount of money you can send, although there is a £25 charge for this service."

Butti

I work for a housing association and we usually get the funds transferred on the day of completion. Sometimes there is a couple of hours delay but that is all. Try not to worry.