Redemption statement nightmare

xylophone

Is the estate insolvent? If so, the debts must be discharged in a particular way?

Is it the case that there are two charges on the property, a first in favour of NRAM (or whoever is the successor in title of NRAM) and a second in favour of the LA?

Have the executors checked at the Land Registry?

Is there an indication that the  OP's offer is not even enough to meet the first charge?

pinkteapot

OP, what you need is clear information on exactly what the situation is. Use the info and questions here to email your solicitor a brief list of questions to establish the facts, and ask them to ask those (and any others they can add) of the vendor’s solicitor. 

Then, ring the EA and say you want clarity on the situation ASAP or you’ll be viewing other houses as soon as lockdown is relaxed. 

Don’t deal with the vendor directly. 

steampowered

Linzi73 said:

That our funds are ready to go and any shortfall is nothing to do with us so therefore shouldn't stop us completing. 

It is your problem, because NRAM won't release their security unless they are paid in full.

Remember that the NRAM loan is secured against the property. If NRAM is not paid in full, the security would remain, and the buyer of the property would effectively take over the vendor's debt.

To be honest I am sceptical that this is all NRAM's fault. The NRAM website suggests that they send out redemption statements within 5 working days. Is it possible that the seller's solicitor has failed to request the statement in time?

Or is it possible that the seller has failed to realise that they are in negative equity and will need to stump up for the excess in order to be able to sell? It could be that the sellers only now understand this. If the sellers don't have the spare cash or can't reach a settlement with the estate's creditors - nobody will be able to buy the property for the moment.

I would be pushing the EA to get a proper update from the seller ASAP, and I would be extending my rental, as it sounds like there is unfortunately a high chance of this sale falling through.

Kyresa

I wouldn't be surprised if NRAM have a particular protocol to follow in a sale and the seller's haven't followed it, just gone to market, then the issue has arisen when a redemption statement has been requested..... 

emilyew95

Strangely, I have found myself in a similar situation. FTB due to exchange and complete on a vacant property, no chain, on 17th April. 

Had a phone call from my solicitor at 9.30am saying the sellers solicitor was waiting for redemption document to be faxed across from lender. 

14.30 - still no redemption document. My solicitor chased this, only to be told they were still working on the document, and would send it over by the end of the day. 

This meant I couldn’t exchange and complete on the day and it has been postponed until Monday. 

I am very suspicious of the delay on what should be a very straightforward transaction. My solicitor seemed to think they were stalling unnecessarily. Perhaps a sign of the covid times?

Thrugelmir

emilyew95 said:

I am very suspicious of the delay on what should be a very straightforward transaction. My solicitor seemed to think they were stalling unnecessarily. Perhaps a sign of the covid times?

Requests will be actioned in the order they are received. As will sit in queues awaiting processing. Whether the request is straightford or complex it'll take as long as it takes time wise. There's only so many hours in the working day. 

Linzi73

We have since discovered that when the policy was originally taken out there is actually a clause included that states there is no liability for a sale that doesnt cover the amount entirely so the executors therfore do not owe anything. 
It seems clear to me that the vendors solicitor has left it very late to contact NRAM (12th March) then again in 3rd April then again on 10th April.
It seems they have been late sending documents and obviously expected it to be sorted quicker
I just don't buy it that its all down to NRAM at all
As I've previously mentioned, i used to be an estate agent so I know how long sales take in the norm
We are firmly under the belief that something isn't as it seems with the executors and their solicitors haven't exactly been helpful. Neither have ours tbh
If we were in a chain with people moving in and out either side this would be an unmitigated !!!!!! up 

Linzi73

@emilyew95 that is strangely coincidental. Our solicitor has basically said when we asked what sort of time scale are we looking at " oh i did know, how long's a piece of string"
Good luck... I hope you get completed tomorrow 

Linzi73

@steampowered there is a clause in the original equity release that means any shortfall doesn't have to be paid by the executors and in the event of a sale the account is paid and closed.
I think that nobody has been proactive in sorting anything out and I suspect the fact we are in rented means there is a lack of urgency as there is no chain involving other people. 

es5595

Perhaps the “executors” have realised with the combination of equity release and LA fees the estate is insolvent, and are wondering why they’re bothering to sort it out when there’s actually nothing in it for them?