Exchange and Redemption Statement

earthquakebird

Hi,

Last week my solicitor indicated that it would take 2-3 weeks before exchange of contracts could take place (despite me having submitted all required paperwork and transferred exchange deposit). Then I received an email from her 2 days ago notifying me that it would be possible to exchange on that day. After not hearing from her for a couple of days, I called and she said that perhaps we could exchange next week - she is currently waiting for the vendor to provide a redemption statement before anything can go ahead. She mentioned that there may be a delay because the vendor lives abroad.

1) Could someone explain exactly what a redemption statement is and whether it could cause any issues or significant delays, particularly how living abroad might have an impact?
2) Is it normal for a solicitor to go back and forth with estimates of exchange dates? It seems a bit like she's pulling dates out of thin air! Bit annoying as I had immediately purchased home insurance when I received the email telling me that exchange would go ahead on that day... now it looks like it'll be at least a week early!

Grateful for your insights as a FTB! Thanks in advance.

G_M

earthquakebird wrote: »

Hi,

Last week my solicitor indicated that it would take 2-3 weeks before exchange of contracts could take place (despite me having submitted all required paperwork and transferred exchange deposit).

this was just her best guess.
There are many other factors in addition to your paperwork/deposit. Naturally it helps if she has the money ready but it also depends when the seller is ready, as well as the seller's seller and the entire chain!



Then I received an email from her 2 days ago notifying me that it would be possible to exchange on that day.

and you said......?

After not hearing from her for a couple of days, I called and she said that perhaps we could exchange next week - she is currently waiting for the vendor to provide a redemption statement before anything can go ahead. She mentioned that there may be a delay because the vendor lives abroad.
Ah! So she jumped the gun a bit 2 days ago - or more likely the seller's solicitor jumped the gun and misinformed her


1) Could someone explain exactly what a redemption statement is and whether it could cause any issues or significant delays, particularly how living abroad might have an impact?
This is confirmation of the exact amount of money the seller needs to pay off their existing mortgage on the property you are buying.
Naturally you don't want this mortgage to remain, so your solicitor must be satisfied that the seller will pay it off
The timeframe should be a few days, but it depend of course on the mortgage lender/bank involved.
If the seller is abroad, communication may be slower, especially if the seller has to write a letter eg to their bank etc.





2) Is it normal for a solicitor to go back and forth with estimates of exchange dates?
Yes. In this case it seems the redemption statement had not been obtained, so when your solicitor asked the seller's solicitor for an 'undertaking' that the mortgage would be removed, the seller'ssolicitor suddenly realised they did not know the amount..... at least that is my guess to what happened

It seems a bit like she's pulling dates out of thin air!

no. She is
a) trying to Exchange for you but at the same time
b)protecting you (eg ensuring the mortgage is rmoved) AND
c) negotiating dates with others in the chani
Things change.
Until Exchange actually takes place, there is no way of knowing when it will take place. Just guesses!

Bit annoying as I had immediately purchased home insurance when I received the email telling me that exchange would go ahead on that day... now it looks like it'll be at least a week early!

Well that is your fault!
You should not have bought it till Exchange was confirmed!


.

hope that clarifies.

earthquakebird

Thanks, yes all makes sense. There is no chain at all and I was a bit perplexed, since it was the vendor who was pressing me and my solicitor to complete (yes, complete!) by the end of this month. Now it seems like it's them who are causing the delay! Fingers crossed all will fall into place soon. Thanks!