Mortgage issues between exchange and completion

MR_HOUSEBUYER

Some URGENT advice needed!

After exchanging contracts there was a burst pipe at the property we were due to complete on.
The current owner has an insurance claim in progress - the benefit of this claim has been signed over to us - the (potential) new owners. The damage to the property purely superficial.

HOWEVER - the mortgage company are now re assessing the property and the damage caused. We've been told they could well pull their offer. This would obviously loose us a substantial deposit on the property as we have already exchanged.

We are also under extreme time pressure as only have a few days left of our 10 day completion extension.

We have been extremely stressed - not only the above but - in order to keep the purchase we had to brake the chain; so we sold our property and are staying with friends/family (with our child) until (if!?!) we move into the new property!

Any advice?

davidmcn

MR_HOUSEBUYER wrote: »

the mortgage company are now re assessing the property and the damage caused. We've been told they could well pull their offer.

Told by whom? And why, if the damage is superficial?

Bottom line is yes, they can pull their offer if they want. But it would seem odd if things are as you state.

MR_HOUSEBUYER

davidmcn wrote: »

Told by whom? And why, if the damage is superficial?

Bottom line is yes, they can pull their offer if they want. But it would seem odd if things are as you state.

Our solicitor and mortgage broker have both said they may pull the offer. The other issue is even if they don't pull the offer our completion extension may well run out prior to them coming to a decision, therefore forcing us out of the sale.

I believe it's due to the fact the title report issued on exchange no longer stands due to burst pipe.

davidmcn

MR_HOUSEBUYER wrote: »

Our solicitor and mortgage broker have both said they may pull the offer.

Yes, they may pull the offer - in theory they can do so, for no reason at all, any time up to completion. Part of your solicitor's job is to warn you of worst-case scenarios. But does anyone think it likely?

I believe it's due to the fact the title report issued on exchange no longer stands due to burst pipe.

Something lost in translation - the title report has nothing to do with burst pipes. But it's possible they would want the surveyor to go back and check it's been fixed.

MR_HOUSEBUYER

davidmcn wrote: »

Something lost in translation - the title report has nothing to do with burst pipes.

Do you have any thoughts on what the issues may be around the title report? As I'm not sure exactly what the title report covers and why this may cause issues to be honest.