Ready to exchange - buyer's solicitor saying mortgage funds release not confirmed

swajarbal

We are in the middle of a chain of 5 and all parties have agreed to a completion date of 23rd July. Our solicitor attempted to exchange contracts today (or request exchange...not quite sure what the exact process is). When they spoke to our buyer's solicitor, the response was that they had not received confirmation of mortgage funds release. They were asked if they could chase this up, but refused to do so! I have no idea why, but have asked our buyer to chase it with their solicitor, as they are the client and should have some clout.
So my question - is it normal for confirmation of mortgage funds to have not been received 8 days before a completion date, and what could be delaying this?
Thanks for any helpful responses

Thrugelmir

Little point in agreeing a definative completion date until everyone is in a position to exchange. All sorts of minor issues arise prior to exchange that need ironing out. 

RelievedSheff

All parties need to have their ducks in a row before you can exchange and it sounds like one of your buyers ducks is out of line. So you are not ready to exchange.

Completion date is not set until exchange of contracts so the 23rd is just a pie in the sky date until the point of exchange of contracts.

swajarbal

RelievedSheff said:

All parties need to have their ducks in a row before you can exchange and it sounds like one of your buyers ducks is out of line. 

I've heard this exact phrase before when buying a house, usually when one solicitor is waiting for a response from someone else, but won't admit that they haven't chased up a response or followed it up with a phone call. Finding this elusive duck is the hardest part of the whole process.

swajarbal

Thrugelmir said:

Little point in agreeing a definative completion date until everyone is in a position to exchange. All sorts of minor issues arise prior to exchange that need ironing out. 

Everyone is ready to exchange apart from our buyers solicitor, who is waiting for “confirmation of mortgage funds release“. What reasons could there be for this not being given? Is there a specific process for obtaining this, or is it because they simply haven’t contacted the mortgage provider until now with regards to a completion date?

martindow

swajarbal said:

RelievedSheff said:

All parties need to have their ducks in a row before you can exchange and it sounds like one of your buyers ducks is out of line. 

I've heard this exact phrase before when buying a house, usually when one solicitor is waiting for a response from someone else, but won't admit that they haven't chased up a response or followed it up with a phone call. Finding this elusive duck is the hardest part of the whole process.

This is where good estate agents can help as they are able to inquire up and down the chain to get hold ups like this resolved.  All of the agents should be keen to get it over the line and collect their fees.

swajarbal

Well our solicitor has confirmed exchange is possible without the mortgage funds release confirmation. However the buyer's solicitor is now saying their file has not been signed off. It's just one excuse after another with them. 

princeofpounds

swajarbal said:

Thrugelmir said:

Little point in agreeing a definative completion date until everyone is in a position to exchange. All sorts of minor issues arise prior to exchange that need ironing out. 

Everyone is ready to exchange apart from our buyers solicitor, who is waiting for “confirmation of mortgage funds release“. What reasons could there be for this not being given? Is there a specific process for obtaining this, or is it because they simply haven’t contacted the mortgage provider until now with regards to a completion date?

At the moment, many (most?) solicitors are advising their clients to only exchange when they are 100% sure they can complete, i.e. simultaneous exchange and completion after the mortgage is drawn down. This is to avoid the risk of exchanging and then having the mortgage lender pull their offer due to dramatic Covid-related changes.

If you are aiming to complete on the 23rd, it would be unusual for the mortgage to have been drawn down by now. It's normally down in the preceding 2-3 of business days, I believe. So this may possibly be all that they are referring to - one party in your chain is insisting on exchanging later than the rest of you.

However, that doesn't mean that there couldn't be a different and more intractable problem. But to be honest I was surprised then you said you were looking to exchange and then complete over a week later, given many of the recent queries we have had on the board have been along the lines of 'my solicitor is telling me simultaneous exchange and completion, how can I book removals?'.

swajarbal

Lots of people on here have said that, as in our case, same day exchange and completion is just not possible or practical. We can't afford to spend £1000 on removals for a solicitor to just say on the day "oh hang on we've not got this or that". The biggest risk in this chain is the solicitors being totally incompetent and c*cking something up on the day of the move. Hence why we are pushing for exchange a few days before completion.