Solicitor problems

Surrey_EA

I understand that it is possible for solicitors to request mortgage monies from the lender prior to exchange taking place, but the solicitor cannot hold on to the funds if exchange/completion does not take place as planned, and some lenders apply financial penalties if the money needs to be returned to the lender. As such, some solicitors are reluctant to request mortgage funds until such time as exchange has taken place.

Kingstreet may be in a better position to confirm whether this is the case. As Kingstreet says, exact policy is likely to vary from lender to lender.

Guest101

Ithaca wrote: »

From the OP: My solicitor is now saying it is too late for completion this Friday as they need 7 days to draw down the funds from our lender.

Sounds like OP's solicitor was waiting until exchange to draw down funds, with a min. 7 days between exchange and completion to allow the funds to transfer?

Oh I see yes, it's another person in the chain with the query, but the OPs lender, thanks for clarifying

ST1991

I have just completed (2 weeks ago or so) with Natwest as my mortgage lender.

my solicitor applied for mortgage funds in ADVANCE of exchange/completion. This meant she applied for funds to be with her in 5 working days, and we could then exchange any point up until then, including on the day if needed.
The first time she did this we could not exchange in time, and so we had to send funds back to Natwest.

However, did the same on the second time (we were very short for time) and it was fine.
Applied for draw-down of funds on Friday, to come through the following Friday. Then, we exchanged on the Monday afternoon, and completed on the Friday as agreed,

It can be done with Natwest... wonder if they are being awkward?

Guest101

ladymarmalade222 wrote: »

My lender is Natwest. Can the funds be rushed through for an extra cost?

There is a small link road currently being built over 200m away, there is a motorway between us and the new Road (almost finished) which he only pulled this query out late on Friday. He asked the buyer if she was aware and happy. Then he told us late yesterday he needs to make sure her lender is ok.

Guest - I don't care if it was factually correct, there was no need for that comment about go fund me. It was obvious I was looking for advice not charity!

Thanks everyone else.

Xx

I'm not going to get into an argument about it. Your OP had one question: How do people manage to exchange and complete if that is the case?



If you want to be offended go ahead, honestly it's not going to bother me. My point was until exchange - book nothing.

Ithaca

ladymarmalade222 wrote: »

Yes Ithaca. My solicitor is adamant she has to exchange before funds can be requested. Hence my question about how people manage to exchange and complete the same day.

Thanks for your help.

Xx

We exchanged at 5pm on a Wednesday and completed at 2pm on Thursday. Our solicitor requested the funds on the Thursday morning and they arrived 2-3hrs later in time for a lunchtime completion. We had already paid in our deposit etc so that had time to clear into the solicitor's account (although that was instant bank transfer too).

Our solicitor said that was the norm for her these days, most of the big lenders (and I would have thought Natwest qualify) do it all electronically so there's no reason it should take a week to move funds around.

davidmcn

Surrey_EA wrote: »

I understand that it is possible for solicitors to request mortgage monies from the lender prior to exchange taking place, but the solicitor cannot hold on to the funds if exchange/completion does not take place as planned, and some lenders apply financial penalties if the money needs to be returned to the lender. As such, some solicitors are reluctant to request mortgage funds until such time as exchange has taken place.

As a conveyancer I confirm this is an accurate summary.

Also, I can't remember the last time any lender actually needed 7 days notice - most of them can turn the requests around pretty much immediately.

G_M

Like Guest, I sometimes respond with an element of humour, which is also misinterpreted or resented from time to time. When one posts very regularly it helps keep one interested and is a defence mechanism against topics that recur regularly, or queries that seem to have no point.

But like Guest, I try to be factual. In this case, Guest made it clear that any help could not possibly come from this forum - possibly only from your solicitor and lender.

As you are not new to the forum, you'll be aware that buying/selling is commonly frustrating, and there is always uncertainty until Exchange has actually taken place.

I suspect your over-reaction to Guest was in part a result of the extra pressure your medical issues place on you, but Guest had no information about this from your first post.

As to your other question:

How do people manage to exchange and complete if that is the case?

I have done this simultaneously in the past.

As a cash buyer, and prepared to accept the risks and pressure involved.

BJV

Firstly so sorry to hear. Moving is always stressful and things can go wrong. You can exchange and complete on the same day and banks can transfer the money within hours. So anything is possible. I know because this happened to me after a terrible house move.

In a ideal world everything would be done ahead of time and there would be lots of time in-between each process. Everyone would be upfront and tell the truth. But this is not an ideal world.

First you need to talk to your solicitor, also you need to talk to your bank. I would also talk to your doctor ref medical bits. Call your removal company as well. This is not ideal but???? well things happen. All you can do is be upfront and honest.

P.s my solicitor requested the money before exchange and my bank manager authorized them to hold the money on the understanding that if we did not complete that the money had to be sent back by a certain date so it is possible.

Make the calls and try if possible to take a deep breath. Really sorry for you I genuinely know how horrible this can be.