Lender refuses move

sjc1971

Strange one this -

Can a lender in effect cancel your move between exchange and completion if they know of a change in the buyers circumstances ie job loss?

2nd question - can you buy and complete on the same day, but not move in (if you have other property) to allow your sellers to pack and move? Then on an agreed date move in??

marksoton

sjc1971 wrote: »

Strange one this -

Can a lender in effect cancel your move between exchange and completion if they know of a change in the buyers circumstances ie job loss?

2nd question - can you buy and complete on the same day, but not move in (if you have other property) to allow your sellers to pack and move? Then on an agreed date move in??

a) Yes absolutely. It's a material change.

b) Yes, but there's a lot of risks.

It doesn't sound strange, just dodgy!

glentoran99

marksoton wrote: »

a) Yes absolutely. It's a material change.

b) Yes, but there's a lot of risks.

It doesn't sound strange, just dodgy!

not sure it can be possible as most lenders would insist on vacant posession

marksoton

glentoran99 wrote: »

not sure it can be possible as most lenders would insist on vacant posession

Very true. But given the context i doubt they'd be made aware.

AnotherJoe

sjc1971 wrote: »

Strange one this -

Can a lender in effect cancel your move between exchange and completion if they know of a change in the buyers circumstances ie job loss?

2nd question - can you buy and complete on the same day, but not move in (if you have other property) to allow your sellers to pack and move? Then on an agreed date move in??

1st question yes which is why a long gap is not recommended
2nd question yes really that's no different to letting some random people stay in your house, you have effectively invited squatters in, why would you do that ?

always_sunny

marksoton wrote: »

a) Yes absolutely. It's a material change.

b) Yes, but there's a lot of risks.

It doesn't sound strange, just dodgy!

for A), doesn't the offer becomes biding at exchange? So if the lender withdraws their offer then the buyer is liable for compensation? I thought once exchanged, everyone was committed (buyer + lender and seller)

scottishblondie

always_sunny wrote: »

for A), doesn't the offer becomes biding at exchange? So if the lender withdraws their offer then the buyer is liable for compensation? I thought once exchanged, everyone was committed (buyer + lender and seller)

The buyer and seller are, the lender is not. In reality it is unlikely that they will withdraw the offer, but if something changes it is a possibility. This is why people are advised to avoid doing things like taking out loans or new credit cards after they've had a mortgage application approved.

glentoran99

always_sunny wrote: »

for A), doesn't the offer becomes biding at exchange? So if the lender withdraws their offer then the buyer is liable for compensation? I thought once exchanged, everyone was committed (buyer + lender and seller)

Lender is not committed until they actually hand over the cash, Its possible that a mortgage offer can be pulled between exchange and completion

agrinnall

sjc1971 wrote: »

2nd question - can you buy and complete on the same day, but not move in (if you have other property) to allow your sellers to pack and move? Then on an agreed date move in??

I think your solicitor would strongly advise against it. Why can't your sellers be packed and ready to leave on the day, which they would have to do anyway if you intended to move in straight away?

elverson

Assuming you haven't already exchanged, when you sign the contract (the day of exchange) it will include a line about vacant possession if your solicitor's on the ball.

Kynthia

The lender can decide not to give you the money right up until completion. This is really bad timing as the buyer is contractually obliged to purchase the property once exchange takes place but if their lender pulls out they need to find the money elsewhere ASAP or forfeit their deposit and pay any other costs the vendor and tge rest of the chain incurs.

Your mortgage will not allow to to complete on the purchase if the vendors don't give 'vacant possession' on completion. As your solicitor is probably representing you lender as well they would inform them. So the only way to do it would be by deceiving your solicitor and lender. Even if you were buying without a mortgage your solicitor would advise against it but there wouldn't be anything stopping you from doing it.