Failed to complete - Penalty Issued - Help needed with some advice

davidmcn

NETACCT wrote: »

No, they are still continuing with their inquiries. As of now, bank's solicitor is still waiting for some confirmation from bank re Sub-Sale structure

Is it something they would claim you should have declared?
Bank's solicitor raising CML and Sub-Sale structure which bank were aware of since begining and I have proof.

Well, either the bank haven't told their solicitor that they're already aware of this complication (which often happens), or the bank may have been "aware" but are only now having the risks explained to them properly.

My solicitor said, its very common for new build as the completion can be after few months or even years. And the mortage offer can become invalid. So advised me to exchange without formal mortgage offer.

This is true. In which case you're adding to the risk that your funding won't be available.

Two solicitors involved. Therefore Exchange should not take place till BOTH say everything is in place.
Is this the legal position which I can argue and claim against my solicitor?

Not a legal position, just a recommendation. Your solicitor should at least have explained to you the penalties which would apply if you failed to come up with the money. I'm sceptical that there's a £19k penalty suddenly applying if you're a day late in completing so I'm not sure where you've got that idea from.

NETACCT

Its firm based in Central London.

davidmcn

G_M wrote: »

It appears the bank's solicitor was satisfied (so the mortgage was offered

No, the mortgage offer (usually) comes before the bank's solicitor has done any due diligence, often before they're even aware that the transaction exists.

NETACCT

Re penalty of about £19K - I have asked them to get the details from the Investment Company's solicitor.

Following is the condition in the contract signed by me with the Investment Company.

10.2 Completion of the sale and purchase of the Property shall be effected by completion of the Lease in the Buyer’s own name following the nomination by the Seller to the Developer of the Buyer as the tenant under the Lease in accordance with the provisions of clause 20.1 of the Contract provided that if the Buyer does not complete on the Completion Date then the Seller may complete the Lease in the Seller’s own name and completion shall then be effected by a transfer of the Lease to the Buyer in such form as may be agreed between the Seller’s conveyancers and the Buyer’s conveyancers (each acting reasonably and promptly).

davidmcn

sparky130a wrote: »

Bloody hell. You're making a simple house transaction hard work.

To be fair, if there's a subsale involved then this isn't a simple transaction.