ERC Charges - Where do I stand?

Thrugelmir

Your solicitor wrote:

'The buyers Solicitor has advised us that their client’s mortgage offer expires at the end of October. They have agreed to draw down their mortgage funds at this time but wait to complete after 1st November to ensure that you do not have to pay your early redemption fee.'

Whereas it doesn't it's actually

I've had no contact with my solicitor since September and was contacted by the buyer today advising that as the offer expires on the 29th of October it must be completed by that date.

29th October is a Friday. Which means that funds have to be drawn down on 28th. As then

The lender will not allow the funds to be drawn down and then completed any longer than 24 hours after doing so.

With Monday being the 31st you are a day out. November 1st being Tuesday.

Perhaps someone simply got the number of days wrong in October. Strange for a mortgage offer to expire on a non working day though. One wonders who is telling the truth.

The_Architect

A product fee would be a whole lot less than the 4% ERC.

The buyer is using an intermediary and liaising with them regarding this, is it likely the intermediary will be much happier getting it all done before the mortgage offer expires rather than asking for extension of a few days? I don't know how much work this would require.

Also how likely is it that it's just another product fee required and no need to go over checks and surveys etc once more?

Should I ask the buyer to speak with the lender direct? Will they deal with the buyer or only the intermediary?

Sorry for the 20 questions!

stator

If 4% is a lot of money then offer them a discount on the price if they agree to the later completion date.

The_Architect

Hello all, I've been speaking with my solicitor today and it looks like all will be okay. It turns out the buyers solicitors had been told they could only hold on to the funds for 24 hours when in the mortgage product handbook it says 3 working days which will allow us to complete on the 1st of November and avoid paying 4%.

It seems that the lenders (HSBC) solicitors who needed to be involved for some part weren't perhaps being completely truthful over the phone, we'll never know but I'll be back when the next problem arises...

Thanks very much!

muhandis

That's good to hear, hope it goes smoothly from here on!

The_Architect wrote: »

...when in the mortgage product handbook it says 3 working days which will allow us to complete on the 1st of November and avoid paying 4%.