Lender reneged on mortgage offer

alumlilly

Hello this is my first ever post so forgive me if I seem like i'me rambling. Also concentration out of the window with stress :{
Several weeks down the line Our lender has renaged on it’s mortgage offer and has put a condition that the loft alteration is complete and signed off before they will lend (35% ltv)
It seems their surveyor did recommend this in the first place but the offer to us came out with no condition. It did however state we were buying a 3 bed with no off road parking so I informed our financial advisor and solicitor of this (a MONTH ago) and that it should say we were buying a 2 bed (as loft room not complete and we only want it as a hobby room anyway) with 2 off road parking spaces. Financial advisor said no prob shouldn’t affect the mortgage, but mention it to your solicitor, who said we’ll get that changed. Now this new mortgage has come to light our financial advisor said go back to solicitor and say you are buying a house marketed as 2 bed and loft room shouldn’t come into it. I said we’ve done all that and the issue is the lender will not lend money on a property with unsigned off work and don't do conditional mortgages. The solicitor is trying to get sellers to agree to complete the work at a cost to us which is fine, but their solicitor has recommended we go back to estate agents to re negotiate price of property. Financial advisor has emailed mortgage people to try and renegotiate mortgage
On top of that our buyer wants to complete by 27th of this month and our solicitor she will not wait any longer so we have agreed to this as we don't want to lose sale (been on the market since September.)
Thanks.

stator

To confirm, you haven't exchanged contracts yet?

Might be quickest to find a new mortgage lender.
Is your financial advisor a whole of market broker or are they based at the estate agent or somewhere else?
So some work has been done to convert the loft, pressumably it has a staircase?
But they don't have a building regulation certificate for the work that has already been done? That's probably the biggest problem. If the sellers could get the work signed off then you might find a lender. I don't think you will have much luck asking them to finish the conversion, that would probably be expensive and take ages.

AnotherJoe

alumlilly wrote: »

On top of that our buyer wants to complete by 27th of this month and our solicitor she will not wait any longer so we have agreed to this as we don't want to lose sale (been on the market since September.)
Thanks.

You cant complete without a mortgage offer. Did you mean exchange? Even thats dodgy. Dont do that until you have a confirmed mortgage offer. Will the lender agree subject to withholding funds and could you live with that? Say you got a 45% LTV and they withheld 10%?

Anyway your vendor is in no position to force your hand. First she'd have to find another buyer,and then that buyer would need to get a survey done and that might bring up this issue anyway.