Risk of losing deposit

NachoGR

Hi,
it's my first post here - found the forum whilst I have been trying to find some answers. I am buying a property, which is a new build. Meaning that we exchanged over 6 months ago and completion has been delayed a couple of times (initial was on June) but now I am completing on Wednesday.

Issue is that in the meantime, my mortgage expired and had to apply for re-opening. Whilst the lender and my broker assured me that this is going to be an easy process , a week before the completion the lender said they wont release the funds unless they do a re-inspection (2nd valuation of the property).

Having said so, and after a number of calls and emails, the valuation is to take place on Monday morning. They all assure me that they will do things fast track and by Tuesday they would have release the funds.

But as you understand, I don't believe them.

So, what would you do? Is there a chance I lose my whole deposit? My solicitor could not get a delay on completion for the developer's solicitor - only thing they said if you delay completion you will pay a penalty and if you delay it more than 10 workings days they might forfeit your deposit.

Any heard any stories of people losing the deposit? I am trying to think positive - and believe that things will go fast track on Monday and have everything ready in a day, but it's not so easy.

Doozergirl

That is highly, highly unlikely.

And no, I don't understand why you don't believe them. What would you choose, really? To worry all weekend because you've decided on your own that it won't happen?

You've been told that they will get it done in time. It would be far better for you to look forward and enjoy it happening in advance, than to live it all going ridiculously wrong.

If you don't complete on time you will have interest on the full amount to pay, calculated daily. It isn't enough to cripple you. The annual rate will be in the contract but it's about 4% over base I think over a year. We got about £30 a day when our buyers were delayed once.

The serving of a formal notice to complete (when completion doesn't happen on time) is really a notice to terminate the contract. It isn't taken lightly and gives 10 days from the notice but no one would issue one straight away anyway.

If you have genuine reason for a delay and keep in contact with the developer, there's no reason for them to issue one at all. Everyone just wants to get the purchase completed.

Chill.


Your solicitor just needs to be on the mortgage company on Monday and Tuesday. They will pull a finger out when it's urgent and they are pushed.

anselld

Don't panic, they have told you they will fast track. Even if there is a delay there is still a procedure to follow - Vendors Solocitor will serve notice to complete etc. and they must prove actual loss to claim any additional costs.

If the mortgage Co don't like the valuation on inspection that would be more problematic, but cross that bridge if needed.

NachoGR

Thanks for the reply guys, you made me feel better. It's my first time buying a property and things got wrong at the last minute while so far had no issues that made me worry.

Thanks again for the advice, hoping to get it sorted.