Completion date delay on my side

laguna_1

Hello all,

I need your help, I have purchased a new build property.
I have signed the missives and provided a 2.5% deposit then. The remaining needs paid on completion date.

The completion date is next Thursday but I have a shortfall in terms of the money side and I will need my pay which is paid on the Friday to make up the shortfall. Then on Friday I can transfer the rest.

The missives actually have a date within it of Friday but then the new builders were pushing for Thursday as they don't do move in on a Friday and also given it's their year end they are trying to get their sale in before the year end for their accounts. Therefore they have put the date of entry as Thursday.

My issue is, what happens if I can't complete on the Thursday and need to send the shortfall on the Friday. I'm scared to ask my solicitor as it may cause a fuss and before I do I'm not sure if I should just send what I can on Thursday and send the rest on Friday. I would need to split the amounts in two payments due to faster payment limits. I am in no rush to move in that week happy to wait but given contracts are signed. I just want to make sure I don't lose the house

I've read the missives and it talks of having to pay interest on the balance due at a rate of 5% above base rate. It then says if payment not made with seven days of date of entry, then they can resile from the property.

I worked out interest at around £50/60 a day so happy paying that. But anything I'm missing. Given all the new aml requirements too borrowing money from parents in cash would also cause more issues with evidencing the funds and hence awaiting the pay from my work
Which will be much easier. Does a one day delay on purchase of new build really cause that much pain. Please help

Can't stop stressing

anselld

If you fail to meet the contractual date you will be liable for any consequential losses incurred by the other side and by others in the chain if there are any.
However, the contractual date is what is agreed in the missives.
You need to speak to your Solicitor so they understand the position and can help you as best they can.
You also need to understand that Faster Payments is not guaranteed to be same day. In fact for large sum to a new destination it is very likely to be next working day due to "security checks".

BrassicWoman

no one is going to care about a couple of grand extra from mum, just get her to pop it into your bank, then trasfer the money - I am assuming you've already had to rovde evidence of where your savings are from?

davidmcn

laguna_1 wrote: »

The completion date is next Thursday
...
The missives actually have a date within it of Friday
...
Therefore they have put the date of entry as Thursday.

So what is the contractual date of entry? Are they just saying they would prefer to settle on Thursday but you wouldn't actually be in default if you paid on Friday? If you're not sure then ask your solicitor.

My issue is, what happens if I can't complete on the Thursday and need to send the shortfall on the Friday.

As you've already worked out, you pay interest for the days you're late (if Thursday really is the date of entry).

I'm scared to ask my solicitor as it may cause a fuss

Don't be daft. This is what your solicitor is meant to advise on.

I would need to split the amounts in two payments due to faster payment limits.

Can't you make the payment by CHAPS?

I just want to make sure I don't lose the house

The sellers can't pull out until the period specified in the missives has expired i.e. 7 days.

Does a one day delay on purchase of new build really cause that much pain.

No.

davidmcn

BrassicWoman wrote: »

no one is going to care about a couple of grand extra from mum, just get her to pop it into your bank, then trasfer the money

The solicitors ought to care given they need to check the source of the funds. Doing that will just add to the complications.

SuboJvR

Those checks have probably already been done though? Evidence of funds beforehand. My solicitor even wanted to see evidence of the money we were using for fees etc not just deposit.

Not that I'm advocating that you do borrow short term.

I think that the best thing would be to discuss with your solicitor. It sounds like you should be able to meet completion date if you go into the bank/ring them first thing on the Friday after your pay is in to do the CHAPS payment, but your solicitor definitely needs to know that's what will happen ahead of time as to be honest they will probably be expecting the money a bit sooner.

The developer has given you a completion date which for their own interests they are now trying to accelerate but you are not in a position to do so.

Let your solicitor know, they will sort things with the developer I'm sure.

And try not to worry. As you say they want to make the sale - they won't be able to pull the house from you and need to go through the entire process with a new buyer for the sake of a Day, especially a day they already agreed to!

davidmcn

SuboJvR wrote: »

Those checks have probably already been done though?

They ought to be checking where the funds actually used came from - otherwise what's to stop you from sending them money from a "dirty" source instead of the nice legitimate account you showed them?

DumbMuscle

A quick note to the solicitor along the lines of "here is the situation, here are the options I have considered, what would you advise? please don't pass this on to the seller until we have agreed what we are doing" is never a bad thing. Advice on this kind of thing is what you are paying them for.

Also, pop into the bank and make a CHAPS payment, it will make the whole thing go smoother.

laguna_1

Wow, you guys are a credit to the boards - thanks for all the information everyone. I am going to email the solicitor today.


Some answers to questions posted and some last help required before I get my head in order to send the solicitor the email.


Faster Payment/CHAPS


I unfortunately don't have access to CHAPS at my bank. I historically opened up a basic bank account and therefore no CHAPS, which is also complicating matters. Therefore faster payments is the only way to go, which may cause a delay in itself as you say, may stretch out to Monday if I make the payment on Friday.


The contractual date in missives is Friday however there is mentioned of a 'mutually' agreed date of entry which would take precedence, so sense this will mean the Thursday,


Good to know sellers cant pull out though, would the interest be payable on the weekends too do you think, eg if I extend to Monday and contractual date is Thursday, trying to minimise what they could charge as a worst case.


At the moment, the solicitor is expecting the money the day before completion ideally with evidence by way of chaps receipt...the solicitor hasn't done any checks on the funds yet, however the morgtgae broker has done all of that separately. The solicitor wants to ensure its been in one place for 90 dyas (which it all has) however the shortfall of the £2k wont have been. Once I'm paid then that'll be the evidence.


The £2k shortfall is more in relation to the overall pot of money due, I have enough for deposit and most of stamp, the lawyer fees and some of the stamp is where I'm short.


As some of the money is also a gift from my wife (decalred with letters written), this also needs to be CHAP'd to my account first and then onwardly to the solicitor. She is also £300 short of the figure she needs to send and with her pay going in on the Thursday too, she is in a similar boat to me.


In summary, the best timeline for me would be:-


Option 1


Friday am (+1 day of date of entry) -
Wife sends me CHAPS money in morning
I then send what I can via faster payments (£25k limit).
Send the rest on Monday


Option 2


Friday am
i) wife sends to solictiors directly the gift money due via chaps
ii) I send the full amount due via faster payments
iii) If all goes through miraculously, then happy days. if Not will go on Monday.


Solicitors have also asked that they need evidence of 90 days of the gifted money being in wifes account. I have all her statements too but they also want to see it 'leaving' her account. I can only think a online banking screenshot will be the best way to evidence that, as the next statement wont be produced by then. Or when she goes to the branch to do the chaps for me, she could get a stamped list of transactions, what do you guys think is best.


Sorry for all the confusion and probably making something quite simple, quite complex.

SuboJvR

Hm, if Thursday needs to be "Mutually" agreed it seems you're not in a place to do that. So they can't really push too hard on this, can they?

Additionally if you have everything bar say, Stamp duty and solicitors fees, I wonder whether your solicitor would accept being paid over the weekend if it were really that much of an issue to complete before the weekend from the developer standpoint. Similarly stamp duty is due within 30 days of purchase I believe, so potentially they may be willing to accept your salary payment on the Friday for this.

All comes back to asking the solicitor though! Outline the issue, outline exactly which costs you can cover (e.g. deposit, and x% of solicitor fees) on what day, and explain what you would be then paying in subsequent days

SuboJvR

Probably would be easiest to get your wife to CHAPS the payment to the solicitor BTW - one less thing for you to evidence, and they will have the evidence of it leaving her account as it comes into theirs?

I'll be using a gifted deposit and I am assuming the easiest way is going to be to get the giftee to transfer direct to solicitor, as they are fully aware that's where it'll be coming from.

Not sure how acceptable online banking print outs/screenshots will be, may be fine. So far for us, no one has batted an eyelid a printout of an online bank statement provided it had the full web address at the bottom. This is in stark contrast to the Home Office who insist that all bank statements must be originals for visa purposes!