property "not lendable"

davidmcn

kk20 wrote: »

Even if a component is in place for a get out clause, asking a person for exchange of contracts on a property over 1 year away is very suspect.

But not that unusual when developments are being sold off-plan. Here's a current thread about a development not scheduled for completion for three years: https://forums.moneysavingexpert.com/discussion/5709877

So the developers are (presumably) expecting everyone to sign up well in advance of a date anybody could get a suitable mortgage offer

I would also imagine a contract that is being drawn up for you as instructed on your behalf should be working for your interests.

Buyers have very little negotiating clout - pretty much take it or leave it.

And no matter how strongly solicitors advise clients, often their clients have pound signs in their eyes and are convinced nothing can go wrong (or at least that the risks are worth it).

drivebysighting

Rich2808 wrote: »

Have your brokers tried Natwest - they are allegedly more flexible on this front?

...
Property types - acceptable
Flats over or immediately alongside business premises.

thanks for your suggestion! appreciate it :-)

drivebysighting

David_White wrote: »

Who's suggestion was it to exchange contracts before having a formal offer in place i.e did the developer/conveyancing team push you into doing this or were you eager to exchange yourself?

We were not aware of what is the best approach, and the Builder setup a launch day where he invited two solicitor companies, and then we were encouraged to sign and exchange moments after providing holding deposit. The Solicitor we were pointed to was already there, he pointed out the various documents and key highlights of the contract and then encouraged us to sign. We assumed this is normal process for a new build launch event.

drivebysighting

davidmcn wrote: »

Nowhere has the OP told us what advice they received before entering into the contract. If they were told in black and white that they'd be obliged to come up with the money on completion day then I can't say they'd have much of a case. The fact that solicitors tend to be very cautious these days doesn't mean that it's negligent to "allow" clients to exchange contracts - at the end of the day the decision is the client's, and many have no need to be concerned about having a mortgage offer or otherwise finding the cash when the day comes.

We were not highlighted the risks involved especially the ones outside of our ability to borrow. As in we knew we were very eligible for mortgage, and thus assumed that getting the mortgage would not be difficult, we also had mortgage in principle ready. But what we were completely not expecting was the mortgage to be turned down because of reasons different from our eligibility, in this case, the eligibility of the property itself.

davidmcn

drivebysighting wrote: »

We were not highlighted the risks involved especially the ones outside of our ability to borrow. As in we knew we were very eligible for mortgage, and thus assumed that getting the mortgage would not be difficult, we also had mortgage in principle ready. But what we were completely not expecting was the mortgage to be turned down because of reasons different from our eligibility, in this case, the eligibility of the property itself.

But you were told that the contract obliged you to pay the balance of the price on completion?

Time2go

Are you sure you have exchanged and not just reserved as searches would have had to be done and even to exchange normally takes weeks.