What happens if we don’t meet completion date?

abs95

Hi, This is a long post so please take the time to read as I could really do with some help.
my boyfriend and I are currently in the process of buying a new build. A bit of back story: we are using the forces help to buy. My boyfriend applied for the loan a couple of days before he was due to come home on leave (Had previously spent 8 weeks serving in Kenya). This was 19th March. Whilst on leave he got one of his friends to check if he had been provisionally accepted and he had. He was supposed to go back to work after his leave finished then lockdown happened. This meant he was then working from home for a further 5 weeks. It’s also important to note that at the end of March, our solicitors had also put us on hold as we weren’t completing yet. Barratt’s had also closed their development sites until further notice. 

Our lender was initially threatening to cancel our mortgage application (all we needed was the FHTB approval for our application to be complete) but our mortgage advisor managed to get them to put it on hold. He went back to work mid May, printed off the form and started getting the signatures required. He left it with one of his clerk friends to get the two other signatures he needs as the clerk is more likely to see them. He is going to check Monday/Tuesday to see whether these have been done/has been sent off.
Our solicitors got in touch Last week to say that they have received the papers from Barratt’s solicitors so can start the searches. As first time buyers, I didn’t know the searches could be done alongside the mortgage application so initially said to hold off until we get our mortgage approved. They said this was fine.
barratts called yesterday to say that they are hoping for an end of June completion.  I forwarded all of this to my mortgage advisor who then said that my boyfriend needs to get the FHTB approval back next week for ya to stand any chance of completing then and that he’s surprised the bank hasn’t cancelled our application yet. He also said the solicitors should have been doing their searches alongside this. I explained the situation with our solicitors and that they had only been in touch last week after putting us on hold since the end of March.
a lot of this is completely out of our control and we are doing everything that we can to move things forward. I don’t know if it’s our mortgage broker just putting pressure on us but being made to feel like we aren’t doing enough/wasting time isn’t great. 

Are we at risk of losing the house if for whatever reason we don’t get the mortgage approved, searches completed, contracts signed etc all done in 4 weeks?! As a first time buyer I feel completely out of my depth and have no idea about what will happen. Coronavirus has made this extremely difficult. We are all in this position but I feel really worried. I would really appreciate any input. Thank you!! 

csgohan4

Speak to Barrats and advise them of the issue and see if a delay can be done

but have you exchanged contracts??

abs95

csgohan4 said:

Speak to Barrats and advise them of the issue and see if a delay can be done

but have you exchanged contracts??

I will do. No we haven’t exchanged contracts yet, solicitors have yet to do their searches 

[Deleted User]

In the current climate, I can't imagine Barratts being too keen to pull your house and sell it to someone else - even if you don't make end of June completion. In a 'hot' market they would, but hard to believe they would now.

There are so many people trying to knock money off houses or get additional incentives etc (whatever the rights/wrongs of that approach), so they might have more problems selling it on to someone else than if they'd just given you more time in the first place (and if they do go elsewhere, they won't complete for a good few months anyway!).

They'll always put pressure on you to complete ASAP, but I'd like to think they'd agree to an extension due to covid-19 related issues. Searches in 4 weeks sounds very tough if they've not been started yet. Maybe agree to having your formal mortgage offer by the end of June, for example, if they push for some kind of timescale. Completion by end of Sept to give you plenty of time (don't know just how slow searches will be at the moment) - has the Solicitor given you any indication of possible search/completion timescales?

If possible, probably worth exchanging and completing on the same day too (I guess a lot of people are doing that currently) - you don't want to exchange and then have problems with the mortgage lender!

abs95

Somerset_La_La_La said:

In the current climate, I can't imagine Barratts being too keen to pull your house and sell it to someone else - even if you don't make end of June completion. In a 'hot' market they would, but hard to believe they would now.

There are so many people trying to knock money off houses or get additional incentives etc (whatever the rights/wrongs of that approach), so they might have more problems selling it on to someone else than if they'd just given you more time in the first place (and if they do go elsewhere, they won't complete for a good few months anyway!).

They'll always put pressure on you to complete ASAP, but I'd like to think they'd agree to an extension due to covid-19 related issues. Searches in 4 weeks sounds very tough if they've not been started yet. Maybe agree to having your formal mortgage offer by the end of June, for example, if they push for some kind of timescale. Completion by end of Sept to give you plenty of time (don't know just how slow searches will be at the moment) - has the Solicitor given you any indication of possible search/completion timescales?

If possible, probably worth exchanging and completing on the same day too (I guess a lot of people are doing that currently) - you don't want to exchange and then have problems with the mortgage lender!

Thank you this is what I thought! The aim is to definitely get the mortgage approved this month. Solicitors have said that searches will probably take around 3 weeks, maybe more due to covid. I have sent an email to the solicitors so when I get an update from them I will then  update Barratt’s accordingly. 

Catwales

My searches were started beginning of March, personal searches completed on 20th May and I'm still waiting for the report off the solicitor.
My local authority made it clear there would be delays as most staff redeployed or working from home so couldn't always access the databases etc required. Check your loca authority website as mine put a statement on there about the delays and that they wouldn't be dealing with new enquiries made after 26th March.
4 weeks seems unlikely to me in the current climate 

abs95

 Catwales said:

My searches were started beginning of March, personal searches completed on 20th May and I'm still waiting for the report off the solicitor.
My local authority made it clear there would be delays as most staff redeployed or working from home so couldn't always access the databases etc required. Check your loca authority website as mine put a statement on there about the delays and that they wouldn't be dealing with new enquiries made after 26th March.
4 weeks seems unlikely to me in the current climate 

Oh gosh that is a long time! I suppose everyone has to factor these kinds of things and that everyone is working with delays. I’ll try and have a look thank you! 

Catwales

I didn't allow searches to be started until after I'd had my mortgage offer in writing, no point paying out for searches upfront without the confirmed mortgage.
Surely theyd want to keep you on board rather than start the process from the beginning with someone else who will potentially want the property at a lower price.

abs95

Catwales said:

I didn't allow searches to be started until after I'd had my mortgage offer in writing, no point paying out for searches upfront without the confirmed mortgage.
Surely theyd want to keep you on board rather than start the process from the beginning with someone else who will potentially want the property at a lower price.

This is what I wanted to wait for but our mortgage advisor was pretty blunt and said that the searches need to be completed ASAP if we want to be completing in June or July.
Thats what I’m thinking too. Hopefully if I just keep everyone updated it should be okay