Mortgage redemption statement delaying exchange

Ycooper1

Please can somebody offer me some advice??! I am pulling my hair out!!
I am buying a property which is being held by the bank due to the previous owner having taken out a second mortgage which was not paid off before they passed away. Therefore, it needed to be sold before the family could receive any remaining funds after the settlement of the outstanding debt.
The process has been a headache from the beginning, with the seller’s lawyers seemingly delaying the process every step of the way, with ultra slow responses and provision of information. The final straw came when on 19 Feb on the day we were supposed to exchange, my solicitor informed me that the seller’s solicitor had been unable to secure a mortgage redemption statement from the lenders! Apparently, it had been requested many weeks prior, but the lenders could not provide this before a valuation had taken place on the property, which they were not prepared to bring forward and was scheldurd for 28 February! This was the day that we had all proposed to complete. Despite jumping up and down and trying to pressurise the lenders to hurry things along, it has now been 2 weeks since the valuation, and STILL no sign of the redemption statement! The seller’s solicitor is apparently chasing this to no avail, other than being told by RBS that they have a backlog due to the snow last week, and they can’t provide a timeline of how long we may have wait!!! This is a complete joke! I have a job I am due to be starting next Monday, and being that we re relocating to an area one and a half hours away, commuting will be a complete nightmare!! My buyers are getting fidgety ( understandably) and threatening to pull out if this isn’t resolved quickly, and I am sat here at my wits end in floods of tears not knowing if everything is about to collapse all around my ears or what to do about it!! Any help would be appreciated! Many heartfelt thanks in advance

hazyjo

How long has it taken so far? When did you offer?

G_M

Ycooper1 wrote: »

......... unable to secure a mortgage redemption statement from the lenders! Apparently, it had been requested many weeks prior, but the lenders could not provide this before a valuation had taken place on the property, .......

There's something more here that you aree not telling us or don't know.

Why would a mortgage redemption statement be dependant on a valuation?

My guess is that someone who is a Beneficiary of the will is wanting to ensure they inherit the right amount - hence want a Valuation. But that's just a guess.

davidmcn

G_M wrote: »

There's something more here that you aree not telling us or don't know.

Why would a mortgage redemption statement be dependant on a valuation?

My guess is that someone who is a Beneficiary of the will is wanting to ensure they inherit the right amount - hence want a Valuation. But that's just a guess.

Or perhaps negative equity, bank have agreed to settle for the net proceeds of sale but want to make sure it's a reasonable price? The solicitors might know more, perhaps something has been lost in translation.


Not much the OP can do about it in any event.

Ycooper1

I’m not 100% sure why a valuation is required to be completely honest! I assume that it’s something to do with the percentage of the property value owed(?) if it was a secured loan or equity release that was outstanding debt on the property. All I know is that there was an unpaid debt upon the death of the original owner.
It’s my guess that the seller’s solicitor left it right to last minute to apply for the mortgage redemption statement either not knowing about the valuation process or anticipating the delay !!!128533;.
I was simply needing some constructive advice as to whether there is anything else I can do, as it seems ridiculous that the whole process has been halted by what should be something that by comparison, should only take s few days or a week at most!

Ycooper1

G_M - The offer was accepted in October 2017

Amanda_Cm

There is something you don't know or they don't tell you.
What's your buyer situation? When did you accept the offer?

xylophone

Surely the house was valued (at least for probate) before the house was put on the market?

Why does RBS require another valuation? Surely their only concern is that the loan should be repaid so that whatever the house is being sold for, as long as they are satisfied on that score, they have no further interest?

And how can there be a redemption statement before redemption has taken place?

davidmcn

xylophone wrote: »

how can there be a redemption statement before redemption has taken place?

Because that's how it works. You ask the lender for a statement of how much you will need to pay to redeem the mortgage on a particular date, and they calculate it to include the accrued interest and any charges.

TBagpuss

It might be an equity release mortgage - I think they have to have a 'cap' to ensure that there is no negative equity, so the redemption figure might be affected by the value of the property.

And if it was a home reversion scheme I think those normally mean that the loan company effectively owns a % of the house so again, valuation would be needed.

Thrugelmir

xylophone wrote: »

Surely the house was valued (at least for probate) before the house was put on the market?

Not necessarily. If estate was well below the threshold for IHT. No formal valuation would have been undertaken. Perhaps probate is yet to be granted. Given that the estate's liabilities haven't yet been quantified.

The process has been a headache from the beginning, with the sellers lawyers seemingly delaying the process every step of the way, with ultra slow responses and provision of information.

Who are the Estates executors?