Solicitor exchanged contracts before we have a mortgage offer

[Deleted User]

Why has it taken 4 months to get a mortgage valuation done but now everyone thinks it will magically be done in a few days?
You say you changed lenders in November for a better rate, how has it taken 4 months and you still don't have a mortgage offer? Something is very off about that
Even if your solicitor has dropped the ball, was the estate agent not chasing this as well? If I went 4 months from offer without a survey then I'd expect the property to be pretty much back on the market

 Personally, based on the mortgage timescales, I'm having a hard time believing this is real and can't offer any advice even if it is so will bow out and I wish you luck with whatever situation you are in.

Tiglet2

I am also struggling to understand how this has happened.  Before an exchange takes place, the file should have been reviewed to make sure everything was in place and preferably by someone quite senior.  If the conveyancer is a licensed conveyancer (believe you said they qualified a year ago) then they would have been studying for quite a number of years together with working in a conveyancing role.  Therefore, in most firms that would be considered to be relatively experienced in the job role, though presumably there was a supervising person with responsibility.  

The conveyancing firm that I work for is extremely busy and everyone is overworked but I have never known a time when something like this has been missed.  When the conveyancer phoned your girlfriend for her authority to exchange, the final review and checks on the file should have been done and the exchange ready to go, subject to that authorisation.  Your girlfriend, giving authorisation, wouldn't have caused this issue.  She is merely authorising the go-ahead, since the conveyancer (by making the phone call) is confirming that she is ready and everyone else in the chain is ready. 

Flugelhorn

The comment about them assuming it was a cash purchase  / private funds just sounds like they realise what a booboo they have made. I have found trying to prove cash funds bizarrely complicated and get the feeling that they would all be happier with a mortgage offer.

SpiderLegs

Isn’t the solicitor also supposed to be working on behalf of the lender?

davidmcn

It may something as straightforward(ly disastrous) as confusing the OP's file with another purchase.

steampowered

Something like this really shouldn't happen, but I can believe that it did.

Conveyancing has become a very competitive market; most of the work is done by unqualified paralegals in licensed conveyancing firms; not by solicitors. A lot of people are overworked and I imagine supervisors are supervising hundreds of files. I can see how it is possible that a junior conveyancer might have made a mistake and the supervisor failed to check properly.

Assuming the facts are as described by the Op, I think all the Op can do is do everything they can to get that mortgage offer in ASAP. If this is all true, Op you need to be making sure it has been escalated to a senior person so that they are aware of the situation if you can't get hold of your conveyancer. 

It might also be worth informing the seller to find out what they are expecting so that the seller doesn't get movers in on Friday only to find they can't move.

If this is all true and the Op ends up suffering loss as a result, it may be that the Op can claim compensation from the conveyancing firm for professional negligence, but it would be much easier/quicker to try and sort it out now. If the Op does end up needing to make a professional negligence claim, the courts will expect to see evidence that the Op has done everything possible to "mitigate their loss" - e.g. doing everything possible to get the mortgage sorted; trying to re-arrange things with the seller etc.

wilfred30

Presumably, if you don't complete on the 13th, the seller's solicitor will serve you with a Notice to Complete which should give you about 10 working days to sort out your mortgage and receive the funds from them.

pinkteapot

OP - have you answered the question of whether there's a chain?

It's fairly safe to assume you're not going to have a mortgage offer ready for the 13th. Lenders normally need a day or two's notice to draw down the funds, even after the offer's been issued. 

If there's no onward chain, get talking to the EA and vendor's solicitor about whether they'd be willing to agree to a late completion. They might be willing to do it, or to do it with minimal financial compensation. 

If you're at the bottom of a long chain, it's more likely you'll be hit with costs from other parties.

The Notice to Complete that will probably come will give you a bit of time before you lose your deposit, but even if you do complete within that window the rest of the chain can still claim costs (rearranged removals, temporary storage/accommodation) from you. Well, each vendor has to claim from their buyer, with the claims passing down the chain getting bigger as they go. Everyone in the chain will be within their rights to claim, but getting the EA on the case liaising with the chain now may make some take little bit of pity at least. 

wesleyad

pinkteapot said:

OP - have you answered the question of whether there's a chain?

They did, its not too long so hopefully that's not too bad and with it being a developer selling there might be more wiggle room

"For people asking about the chain. The seller is buying a new house and paying a developer (according to the estate agent). So there is not an extremely long chain."

princeofpounds

Hi OP, thanks for the extra detail. People are shocked at the solicitor, not you. Your girlfriend may have been naive but she made an honest mistake and was led by the solicitor.

The fact that this has transferred up to a supervising solicitor indicates they know they had a problem. Personally I'm pretty convinced of their negligence based on what you have said. If you indicated you were using a mortgage, that's clear as day (as a layman). They cannot admit negligence, even if they know it took place, so don't treat their denial too seriously at this stage - they will have to fall back on their insurance if you claim and for that to be valid they can't admit liability unilaterally.

It sounds like you are doing the right things, as much as you can. Do press your solicitor to try to renegotiate the completion. It may be possible in a short chain.

My guess/hope is that you will get over the line, not for the 13th necessarily, but there is a better chance in the following period.