Mortgage offer expiring - Solution oriented route to exchange possible?

Buyer_K

My mortgage offer expires tomorrow. There will be no extension unfortunately - this has been made very clear by my mortgage broker. She is investigating my eligibility for another application as we speak.

The delaying factors (apart from poor inter-solicitor communication) have been issues with:

- Missing planning permission/building regulations (being solved with indemnity insurance)

- communal storage area (solicitor wanted it to be acknowledged in lease) - (I've asked to have it referred to the lender that I don't need legal access to this and they've said it's ok - I've not even seen this storage!)

- missing fire safety risk assessment (or rather half-missing)

- missing evidence that Insurers are aware of historical subsidence (so far there's a copy email from the insurer confirming)

- Freehold being offered on completion (waiting on valuation)

The realistic situation is that the history of this property is a slightly hazy thing, where documentation is scarce and/or unavailable. I am aware that in the end my lender might not just not want to lend to me under these circumstances

But I wondered:

I any of your experiences have you found that there is a way to engage in a solution focussed dialogue with your solicitors that seeks to solve complex cases without seeking answers that don't exist or are difficult to obtain, particularly if you are a client that would do a lot to accommodate problems/cost/risk?

Anyone had any difficult/complex cases they've manage to solve with clever choices?

G_M

Assuming the lender agrees, you as the client can always instruct your solicitor to ignore specific issues and proceed with the purchase.

He will of course want that instruction in writing, since it may go against his advice to you, and to proceed without a specific instruction would be unprofessional and could lead to you suing him later.

Of the factors you list:
* Missing planning permission/building regulations
What risk worries you? Indemnity insurance protects you if the local authority enforces planning rules or BR. But does not protect you from shoddy or dangerous works.
Are you concerned or happy to take the risk?

* communal storage area:
if you are not that bothered about this, it does not matter. If you ultimately get access, that will be a bonus.

* missing fire safety risk assessment :
if you are worried about the fire risk, get the freeholder to do a risk assessment (or show you a current one if it exists) once you own the lease

* missing evidence that Insurers are aware of historical subsidence
Surely the copy email is evidence....
I'd be more woried about the subsidence. You say 'historic'. Meaning what? Did you get a survey? What does it say? How much are the insurance premiums? Have you investigated whether other insurers will offer cover and if so at what premium? Propery insurance where there's subsidence can be expensive, and hard to shop aound. However the word 'historic' may be highly relevant.

* Freehold being offered on completion.
Offered by who? And you have no idea if it's a reasonable/affordable cost?
Is it being bought by a collective of leaseholders from the freeholder?
Is your seller currently also the freeholder? Or joint freeholder?
If the offer to buy the freehold was subsequently withdrawn, or was too expensive, would you still be happy to have bought just the leasehold?

AdrianC

Buyer_K wrote: »

I any of your experiences have you found that there is a way to engage in a solution focussed dialogue with your solicitors that seeks to solve complex cases without seeking answers that don't exist or are difficult to obtain, particularly if you are a client that would do a lot to accommodate problems/cost/risk?

Forgive me for this, but that sounds a lot like buzzword bingo (and "buzzword" is not necessarily the first 8 letter adjective beginning with B that comes to mind)

What do you actually MEAN?

Right now, as of tomorrow, nobody has promised to lend you the money to buy the place. Without a promise of money, you cannot exchange, because you will be legally obliged to do something that you cannot guarantee is possible - actually complete on the purchase.

You need a mortgage offer.

I am aware that in the end my lender might not just not want to lend to me under these circumstances

Your solicitor also acts for your lender. If the lender is not 100% happy with the property being adequate security, you will not exchange. You can ask your solicitor to ignore some things, but not that.

Buyer_K

G_M wrote: »

Assuming the lender agrees, you as the client can always instruct your solicitor to ignore specific issues and proceed with the purchase.

He will of course want that instruction in writing, since it may go against his advice to you, and to proceed without a specific instruction would be unprofessional and could lead to you suing him later.

Of the factors you list:
* Missing planning permission/building regulations
What risk worries you? Indemnity insurance protects you if the local authority enforces planning rules or BR. But does not protect you from shoddy or dangerous works.
Are you concerned or happy to take the risk?

This is the thing - I'm not worried about it. I'm happy to take out indemnity insurance. I've been happy to from the start. I'm going to be doing works on the property a soon as possible after completion. Planning permission will be required - indemnity insurance presumably invalidated. None of this is problematic to me.

* communal storage area:
if you are not that bothered about this, it does not matter. If you ultimately get access, that will be a bonus.

I won't be getting access in good time. I found out that the vendors side is struggling to get a lease amendment/deed of variation because it would end up being different to every other lease in that building. Once I found out from EA that was the major quibble I asked my solicitor to drop the enquiry. I'm still trying to get my head around why he's still questioning the vendors solicitor about this issue

* missing fire safety risk assessment :
if you are worried about the fire risk, get the freeholder to do a risk assessment (or show you a current one if it exists) once you own the lease

Sounds like a great idea

* missing evidence that Insurers are aware of historical subsidence
Surely the copy email is evidence....
I'd be more woried about the subsidence. You say 'historic'. Meaning what? Meaning within the tenancy of the vendor (25 years) there were works done to solve subsidence Did you get a survey? Yes indeedWhat does it say? Says it's fineHow much are the insurance premiums?I will investigate, though to be fair the insurer is likely to change once joint ownership of freehold is owned Have you investigated whether other insurers will offer cover and if so at what premium? Propery insurance where there's subsidence can be expensive, and hard to shop aound. However the word 'historic' may be highly relevant.

* Freehold being offered on completion.
Offered by who? And you have no idea if it's a reasonable/affordable cost?Neither of these things are especially problematic in this situation. A freehold valuation has been done by the freeholder (an individual separate from, but related to the vendor)
Is it being bought by a collective of leaseholders from the freeholder?
Is your seller currently also the freeholder? Or joint freeholder?
If the offer to buy the freehold was subsequently withdrawn, or was too expensive, would you still be happy to have bought just the leasehold?Indeed I would

Like I say these are not problematic issues for me - so I'll be keen to discuss with my solicitor whether they are all referable to the lender, which I didn't realise I could be so bold as to do.

Thanks for you clarity!

davidmcn

Assuming the offer deadline means you actually need to complete today, there's almost nil likelihood of pulling everything together even if everybody was in agreement.

Buyer_K

I'm expecting to make a new application not exchange today! I've been aware of this for the last week.
I just want to be able to eschew some of the problems I had that got me to this place to begin with (i.e. 6 months down the line and not sure whether I'm really far away or not that far away at all from being eligible able to purchase with a mortgage). As much as I'm aware that a new offer could give the process time to breathe, I'm also not looking to take another age to get through the rest of it. It seems silly when I could maybe get a lot of this sorted before I get the next offer - particularly if it's from the same lender.

davidmcn

Buyer_K wrote: »

I'm expecting to make a new application not exchange today!

Fair enough, but you didn't mention that in the (original version of the) OP.

Buyer_K

davidmcn wrote: »

Fair enough, but you didn't mention that in the OP.

It's all good, dude. Just a mistake.