New Build Solicitor Advice??

R.o

Good afternoon all,

Anyone come across the below issue with exchange on a new build?

Reserved new build with estimated completion of FEB/MAR/APR. Solicitor has just informed me that they have exchanged BUT with estimated completion date of 31st May. Well my mortgage offer runs out beginning of May. Spoke to my broker who confirmed the lender will extend offer up to a month and beyond that I will have to re-apply again (offer was issued just before rates went up)

Just wondering if anyone's solicitor contacted them prior to exchanging? Just looking at worse case scenario as it sounds like a big risk or is this normal?

Thanks in advance.

YHM

When did you apply for the mortgage?

Why has your solicitor exchanged when the offer document, that they will have been sent, expires before completion?

R.o

1, Applied middle of October,


2, Have no clue, as far as we were aware the latest date of April 18 for which offer was valid. Is this concerning to you?


I am a FTB

YHM

I would expect the offer to have lasted for 6 months, and yes it potentially will have an extension on it, especially for newbuild.

My concern would be the solicitors not flagging the expiry of the offer document up with you, before exchanging contracts.

kingstreet

It's unusual for a solicitor to exchange contracts where he doesn't have a mortgage offer valid for the anticipated legal completion date.

The solicitor may feel he can trust the lender's extension policy.

Is there any chance you could tell us the lender's name so we don't go all round the houses covering every eventuality?

R.o

Thanks so far guys,


Lender is NatWest, broker has already requested a months extension so I have until beginning of June to complete.


Offer expires 5th May, in my solicitor's email they mention it could go past 31st. To be honest our transaction has been a complete nightmare and we are currently negotiating a refund on our legal fee's. We had no clue about new expected completion date.


If I have to re-apply and say I was on the edge of affordability and the rates went up which they have....Am I correct in saying the bank wouldn't lend as much? not sure if it works like that.

kingstreet

Yes, NatWest permits one 30 day extension then a new application would be needed.

Affordability doesn't necessarily change as rates change, but you may face a higher rate. Builders with whom we work would expect to face a bill at completion for increased mortgage costs/fees as a result of their inability to get the build completed on time.

YHM

Solicitors aren't versed enough to understand which lender will extend offers and which won't.

I'd be having words with them as to what they were playing at....

R.o

Thank you for all the reply's, appreciate it. Seemed concerning to me and looks like I was right.


Anyone wish to add please feel free.

ValiantSon

Your solicitor should have asked for consent to exchange. They cannot just exchange contracts without your authorisation. Double check that they have actually exchanged, rather than said that a completion date of 31st May would be acceptable. If they have then it is time to make a formal complaint and pursue it with the relevant bodies. What your solicitor has done is grossly negligent and not acting in the best interest of their client.

R.o

I have now spoke to a manager who basically referred me to the review on title and advised me the date would of been on there. So I reviewed it and there is no date whatsoever, it only specifies that completion will be done within two weeks notice from the seller. As far as I was aware it was Feb/mar/Apr. I'm waiting back to hear if a long stop date has been put it but do they write that in to every contract? Or does it need to be requested to be put in?