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Letter of comfort
NYClaire
Posts: 41 Forumite
A few issues have raised today in the process of us selling our house.
We knocked down a wall which we were told at the time was not a supporting wall. This has been flagged up now. Our solicitor advised us that we could obtain a title indemnity policy which our sellers are not prepared to accept, They would prefer to have something from the Council to confirm that the alteration was exempt. If the property is exempt, they may ask for photos/ plans with a view to issuing a Letter of Exemption. If they think it may not be exempt, a Building Standard’s Officer may attend at your property in order to inspect the alteration with a view to issuing a Letter of Comfort. This can cost a couple of hundred pounds.
Issue 2 is that we accepted an offer of 63k based on the fact that we didn’t want to lose our new property and the fact the heating would need serious updating. (Currently white metre storage heaters. Our home report valued the house at 70k. It is an investment property for our buyer.
Our buyers solicitor is now wanting us to sign a declaration to say we are not going bankrupt and this is not the reason we are selling for 7k under value. I am confused at this. Why are we being asked this?
Our solicitor feels that as we are seeking for 7k less our buyers should cover the fee for the letter of comfort.
I am worried out buyer may pull out. Would it cost him this far in?
Any advice would be appreciated.
We knocked down a wall which we were told at the time was not a supporting wall. This has been flagged up now. Our solicitor advised us that we could obtain a title indemnity policy which our sellers are not prepared to accept, They would prefer to have something from the Council to confirm that the alteration was exempt. If the property is exempt, they may ask for photos/ plans with a view to issuing a Letter of Exemption. If they think it may not be exempt, a Building Standard’s Officer may attend at your property in order to inspect the alteration with a view to issuing a Letter of Comfort. This can cost a couple of hundred pounds.
Issue 2 is that we accepted an offer of 63k based on the fact that we didn’t want to lose our new property and the fact the heating would need serious updating. (Currently white metre storage heaters. Our home report valued the house at 70k. It is an investment property for our buyer.
Our buyers solicitor is now wanting us to sign a declaration to say we are not going bankrupt and this is not the reason we are selling for 7k under value. I am confused at this. Why are we being asked this?
Our solicitor feels that as we are seeking for 7k less our buyers should cover the fee for the letter of comfort.
I am worried out buyer may pull out. Would it cost him this far in?
Any advice would be appreciated.
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Comments
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A few issues have raised today in the process of us selling our house.
We knocked down a wall which we were told at the time was not a supporting wall. This has been flagged up now. Our solicitor advised us that we could obtain a title indemnity policy which our sellers are not prepared to accept, They would prefer to have something from the Council to confirm that the alteration was exempt. If the property is exempt, they may ask for photos/ plans with a view to issuing a Letter of Exemption. If they think it may not be exempt, a Building Standard’s Officer may attend at your property in order to inspect the alteration with a view to issuing a Letter of Comfort. This can cost a couple of hundred pounds.
Issue 2 is that we accepted an offer of 63k based on the fact that we didn’t want to lose our new property and the fact the heating would need serious updating. (Currently white metre storage heaters. Our home report valued the house at 70k. It is an investment property for our buyer.
Our buyers solicitor is now wanting us to sign a declaration to say we are not going bankrupt and this is not the reason we are selling for 7k under value. I am confused at this. Why are we being asked this?
Our solicitor feels that as we are seeking for 7k less our buyers should cover the fee for the letter of comfort.
I am worried out buyer may pull out. Would it cost him this far in?
Any advice would be appreciated.
What did your solicitor say when you asked him why the buyer's solicitor wants you to sign a declaration regarding sequestration?
It probably won't cost much for your buyer to withdraw this offer. A couple of hundred in solicitor's fees maybe but that's about it.0 -
In case your creditors claim that you were disposing at undervalue and try to claw back the property. Your solicitor can explain, though it is pretty pointless (if you were bankrupt you'd sign anyway), and if you're selling on the open market for merely 10% less than HR value I don't see the concern. Do you have a difficulty in signing it?Our buyers solicitor is now wanting us to sign a declaration to say we are not going bankrupt and this is not the reason we are selling for 7k under value. I am confused at this. Why are we being asked this?
Yes, probably. Not vast amounts. Probably all just their solicitor being risk-averse.I am worried our buyer may pull out. Would it cost him this far in?
Bear in mind the risk that as soon as you contact the council about the alteration, you can't then get indemnity insurance - so you'd better be sure that they're not going to ask you to carry out any further works.0 -
"indemnity policy which our sellers are not prepared to accept"
Do you mean BUYER ?
"It is an investment property for our buyer."
So has the buyer paid for a survey or is he/she going to drop the offer price at the last minute???
Major works needing to be done so will struggle to get a " Normal mortgage" ?0 -
"indemnity policy which our sellers are not prepared to accept"
Do you mean BUYER ?
"It is an investment property for our buyer."
So has the buyer paid for a survey or is he/she going to drop the offer price at the last minute???
Major works needing to be done so will struggle to get a " Normal mortgage" ?
This is Scotland so the OP will have paid for the Home Report and the buyer cannot drop the offer price at the last minute. He can continue with the sale as the agreed price or he can withdraw from the sale.0 -
Sorry yes I meant buyer.
What do you mean by major works in order to get a “normal mortgage”?0 -
In case your creditors claim that you were disposing at undervalue and try to claw back the property. Your solicitor can explain, though it is pretty pointless (if you were bankrupt you'd sign anyway), and if you're selling on the open market for merely 10% less than HR value I don't see the concern. Do you have a difficulty in signing it?
Yes, probably. Not vast amounts. Probably all just their solicitor being risk-averse.
Bear in mind the risk that as soon as you contact the council about the alteration, you can't then get indemnity insurance - so you'd better be sure that they're not going to ask you to carry out any further works.
No we don’t have a problem signing, I just wondered why it seemed an issue.0 -
What did your solicitor say when you asked him why the buyer's solicitor wants you to sign a declaration regarding sequestration?
It probably won't cost much for your buyer to withdraw this offer. A couple of hundred in solicitor's fees maybe but that's about it.
She just said that our buyers solicitor was quite old school.0
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