Sellers stalling over settlement

Norris667

Hi,

I'd just like to get some advice as to what leverage I have in the below position, i'll outline simply below:

1. 5.5 Months to get to point of exchange
2. Seller has shifted exchange date 3 times
3. Finally agree on a date however on day of giving consent, sellers (Husband & Wife) go quiet
4. Continue trying to contact them for a week, no one can get through, except their solicitor who when pushed for info says due to confidential nature of issue they cant divulge.
5. Finally on Saturday we uncover that they sellers are getting divorced and the issue with the exchange/completion is that they can't agree on the split of money from sale. The divorce being the reason the property was on the market in the first place.

To top this off, out mortgage offer expires in two weeks, and my wife is due to give birth in 3 months, so we are no longer able to get the same level of mortgage from a lender.

What can be done, if anything to push the seller for a resolution in this situation? Does the fact that the settlement still need resolution this late on give us any leverage on at least settling our legal fees so far?

Any insight appreciated!

Cheeky_Monkey

To be honest, I don't think you've got any leverage at all.

Apart from threatening to pull out but then you have to mean it. In your situation, I don't think that's likely.

It's a shame that you didn't know a lot earlier that they were divorcing as that situation generally causes problems.

If you do pull out, you will not be able to recoup your legal fees from them as you haven't exchanged yet.

Norris667

Thanks for your quick reply, I thought as much.

Appreciate you taking the time to respond.

Surrey_EA

No leverage at all I'm afraid.

My experience with situations like this is that one party is typically keener to sell than the other. If they haven't got to a position where a mutually agreeable settlement is on the table in nearly 6 months, the chances of it being resolved before your mortgage offer expires is slim.

If they haven't already, get your solicitor to confirm the date your offer expires to the sellers solicitor.

TBagpuss

I don't think you have any leverage.
You can ask your solicitor to point out to their conveyancer that the funds could be held by their conveynacers until they reach agreement, but I would guess that one (or both) of them doesn't want to to that.

I'd suggest that you start actively looking for alternative properties and let them know you are doing so.

Norris667

Thanks all, unfortunately, we won't be able to look for a new property as we have just 2 weeks on our offer and won't be able to complete on a house in that time.

We will wait until our mortgage term ends in January and then look towards a lender who views maternity with less scrutiny such as NatWest.

Davesnave

Cheeky_Monkey wrote: »

It's a shame that you didn't know a lot earlier that they were divorcing as that situation generally causes problems.

It's even worse when they go to Relate and make-up.



As we found, the house is then pulled from the market altogether!

davidwood681

Norris667 wrote: »

Thanks all, unfortunately, we won't be able to look for a new property as we have just 2 weeks on our offer and won't be able to complete on a house in that time.

We will wait until our mortgage term ends in January and then look towards a lender who views maternity with less scrutiny such as NatWest.

My son was engaged to a Natwest mortgage advisor. She always said it was best to keep quiet about any future family expansions do to affordability.

ReadingTim

davidwood681 wrote: »

My son was engaged to a Natwest mortgage advisor. She always said it was best to keep quiet about any future family expansions do to affordability.

I hope she made an exception for your son though....:D

avacapri

re the legal fees lots of firms of solicitors offer a no purchase no fee if its not your fault so check with them, also with the mortgage check to see what you need to do to reissue, iam thinking survey you may need a reinspection rather than a full survey if you do it now, i would advise making sure your ducks are in order sods law says they give the go ahead and your not ready.

re-leverage only thing you can do is threaten to pull out .... start looking for something else (or rent for 6 months you are going to have your hands full soon)

xylophone

Presumably the sellers are not quibbling about the price of the house.



Could the sellers not reach an agreement that their solicitor will hold the money on their joint behalf and release it to them in the proportions agreed in their divorce settlement?