Sub sales and Back to back transaction Mortgage

london21

user1977 said:

london21 said:

How do I know this isn’t fraud. The seller’s name is not on the land registry. The purchase price is a huge amount and can’t afford to lose my 10% deposit.

Have you actually talked to your solicitor about this, as it sounds like you need someone to sit you down and explain how this sort of transaction works?

I did contcat my solicitor but not sure he has extensive auction property experience. Not much advice has been given as he gavve me a form to sign conveyancing from exchnge to completion and as i have already won the auction.
What it is looking like is that the property is not registered and it appears will be registered once i make the payment for the property.
the vendor mearly a middle man in the transaction.
I thought the property was been sold by the vendor, but there is a seller to the vendor, the vendor and myself.
so what i need to establish with my solicitor is will the sale be the vendor to the seller > the vendor > then myself. or the vendor to the seller > myself.

lonibra

london21 said:

user1977 said:

london21 said:

How do I know this isn’t fraud. The seller’s name is not on the land registry. The purchase price is a huge amount and can’t afford to lose my 10% deposit.

Have you actually talked to your solicitor about this, as it sounds like you need someone to sit you down and explain how this sort of transaction works?

I did contcat my solicitor but not sure he has extensive auction property experience. Not much advice has been given as he gavve me a form to sign conveyancing from exchnge to completion and as i have already won the auction.
What it is looking like is that the property is not registered and it appears will be registered once i make the payment for the property.
the vendor mearly a middle man in the transaction.
I thought the property was been sold by the vendor, but there is a seller to the vendor, the vendor and myself.
so what i need to establish with my solicitor is will the sale be the vendor to the seller > the vendor > then myself. or the vendor to the seller > myself.

I hope this doesn't feel like a pile-on but I think you are focusing on the wrong thing here.

As far as you are concerned, the issue is how you will finance the purchase, and the ticking clock, that is pretty much it.

Cash (preferable) and auction finance are the only practical options you have.

I think how the sub-sale works is that your "vendor" is only a pass through and they get to claim sub-sale stamp duty relief so in effect only you as the end recipient pays it.

london21

lonibra said:

london21 said:

user1977 said:

london21 said:

How do I know this isn’t fraud. The seller’s name is not on the land registry. The purchase price is a huge amount and can’t afford to lose my 10% deposit.

Have you actually talked to your solicitor about this, as it sounds like you need someone to sit you down and explain how this sort of transaction works?

I did contcat my solicitor but not sure he has extensive auction property experience. Not much advice has been given as he gavve me a form to sign conveyancing from exchnge to completion and as i have already won the auction.
What it is looking like is that the property is not registered and it appears will be registered once i make the payment for the property.
the vendor mearly a middle man in the transaction.
I thought the property was been sold by the vendor, but there is a seller to the vendor, the vendor and myself.
so what i need to establish with my solicitor is will the sale be the vendor to the seller > the vendor > then myself. or the vendor to the seller > myself.

I hope this doesn't feel like a pile-on but I think you are focusing on the wrong thing here.

As far as you are concerned, the issue is how you will finance the purchase, and the ticking clock, that is pretty much it.

Cash (preferable) and auction finance are the only practical options you have.

I think how the sub-sale works is that your "vendor" is only a pass through and they get to claim sub-sale stamp duty relief so in effect only you as the end recipient pays it.

Ok thanks. Will be using cash. The bridging loan is 0.75% and tbh have had money in the bank for so long yielding no growth. My original plan was to get a mortgage but decided on paying cash and afterwards once registered will get a mortgage.
will be interesting if the land registry will register the vendor and then myself. Or will it be from the registered proprietor then myself. 

With cash purchase will benefit the stamp duty holiday. 

This has been an eye opening experience  . 

user1977

london21 said:

lonibra said:

london21 said:

user1977 said:

london21 said:

How do I know this isn’t fraud. The seller’s name is not on the land registry. The purchase price is a huge amount and can’t afford to lose my 10% deposit.

Have you actually talked to your solicitor about this, as it sounds like you need someone to sit you down and explain how this sort of transaction works?

I did contcat my solicitor but not sure he has extensive auction property experience. Not much advice has been given as he gavve me a form to sign conveyancing from exchnge to completion and as i have already won the auction.
What it is looking like is that the property is not registered and it appears will be registered once i make the payment for the property.
the vendor mearly a middle man in the transaction.
I thought the property was been sold by the vendor, but there is a seller to the vendor, the vendor and myself.
so what i need to establish with my solicitor is will the sale be the vendor to the seller > the vendor > then myself. or the vendor to the seller > myself.

I hope this doesn't feel like a pile-on but I think you are focusing on the wrong thing here.

As far as you are concerned, the issue is how you will finance the purchase, and the ticking clock, that is pretty much it.

Cash (preferable) and auction finance are the only practical options you have.

I think how the sub-sale works is that your "vendor" is only a pass through and they get to claim sub-sale stamp duty relief so in effect only you as the end recipient pays it.

will be interesting if the land registry will register the vendor and then myself. Or will it be from the registered proprietor then myself. 

No, it won't be interesting. You'll simply end up with the title in your name. There'll never be anything issued in the name of the middleman.

london21

user1977 said:

london21 said:

lonibra said:

london21 said:

user1977 said:

london21 said:

How do I know this isn’t fraud. The seller’s name is not on the land registry. The purchase price is a huge amount and can’t afford to lose my 10% deposit.

Have you actually talked to your solicitor about this, as it sounds like you need someone to sit you down and explain how this sort of transaction works?

I did contcat my solicitor but not sure he has extensive auction property experience. Not much advice has been given as he gavve me a form to sign conveyancing from exchnge to completion and as i have already won the auction.
What it is looking like is that the property is not registered and it appears will be registered once i make the payment for the property.
the vendor mearly a middle man in the transaction.
I thought the property was been sold by the vendor, but there is a seller to the vendor, the vendor and myself.
so what i need to establish with my solicitor is will the sale be the vendor to the seller > the vendor > then myself. or the vendor to the seller > myself.

I hope this doesn't feel like a pile-on but I think you are focusing on the wrong thing here.

As far as you are concerned, the issue is how you will finance the purchase, and the ticking clock, that is pretty much it.

Cash (preferable) and auction finance are the only practical options you have.

I think how the sub-sale works is that your "vendor" is only a pass through and they get to claim sub-sale stamp duty relief so in effect only you as the end recipient pays it.

will be interesting if the land registry will register the vendor and then myself. Or will it be from the registered proprietor then myself. 

No, it won't be interesting. You'll simply end up with the title in your name. There'll never be anything issued in the name of the middleman.

Ok, no chance for a mortgage in that case. 

Didn’t know such structure was allowed or legal but live & learn. 

[Deleted User]

london21 said:

lonibra said:

london21 said:

user1977 said:

london21 said:

How do I know this isn’t fraud. The seller’s name is not on the land registry. The purchase price is a huge amount and can’t afford to lose my 10% deposit.

Have you actually talked to your solicitor about this, as it sounds like you need someone to sit you down and explain how this sort of transaction works?

I did contcat my solicitor but not sure he has extensive auction property experience. Not much advice has been given as he gavve me a form to sign conveyancing from exchnge to completion and as i have already won the auction.
What it is looking like is that the property is not registered and it appears will be registered once i make the payment for the property.
the vendor mearly a middle man in the transaction.
I thought the property was been sold by the vendor, but there is a seller to the vendor, the vendor and myself.
so what i need to establish with my solicitor is will the sale be the vendor to the seller > the vendor > then myself. or the vendor to the seller > myself.

I hope this doesn't feel like a pile-on but I think you are focusing on the wrong thing here.

As far as you are concerned, the issue is how you will finance the purchase, and the ticking clock, that is pretty much it.

Cash (preferable) and auction finance are the only practical options you have.

I think how the sub-sale works is that your "vendor" is only a pass through and they get to claim sub-sale stamp duty relief so in effect only you as the end recipient pays it.

Ok thanks. Will be using cash. The bridging loan is 0.75% and tbh have had money in the bank for so long yielding no growth. My original plan was to get a mortgage but decided on paying cash and afterwards once registered will get a mortgage.
will be interesting if the land registry will register the vendor and then myself. Or will it be from the registered proprietor then myself. 

With cash purchase will benefit the stamp duty holiday. 

This has been an eye opening experience  . 

Glad you have a way out of this.    For what its worth,   remortgaging on day1 when its been an auction purchase isnt difficult.  Just wait for the LR to update and approach any of those lenders I mentioned before.  

london21

Mine and my solicitor's efforts arent yielding much results and really dont know what to do now.

"Please provide property information form and fixtures list.

Please also provide AP1 submitted to HM Land Registry (or to be submitted to land registry with supporting documents)

Please provide your client’s full name to enable us to draft the TR1."

the seller's solicitor has provided a company name which is not the same on land registry. and stated "please  note our client’s purchase of the property is to coincide with its sale which is to take place simultaneously."

user1977

london21 said:

Mine and my solicitor's efforts arent yielding much results and really dont know what to do now.

"Please provide property information form and fixtures list.

Please also provide AP1 submitted to HM Land Registry (or to be submitted to land registry with supporting documents)

Please provide your client’s full name to enable us to draft the TR1."

the seller's solicitor has provided a company name which is not the same on land registry. and stated "please  note our client’s purchase of the property is to coincide with its sale which is to take place simultaneously."

Well, that's all consistent with what you've been telling us so far.

london21

user1977 said:

london21 said:

Mine and my solicitor's efforts arent yielding much results and really dont know what to do now.

"Please provide property information form and fixtures list.

Please also provide AP1 submitted to HM Land Registry (or to be submitted to land registry with supporting documents)

Please provide your client’s full name to enable us to draft the TR1."

the seller's solicitor has provided a company name which is not the same on land registry. and stated "please  note our client’s purchase of the property is to coincide with its sale which is to take place simultaneously."

Well, that's all consistent with what you've been telling us so far.

So what i do not understand is are we going to get any documents like the  "AP1 submitted to HM Land Registry (or to be submitted to land registry with supporting documents)" or we just going to have to send money to my solicitor and complete.

someone on the forum said the land registry will go from the original owner's name to mine.
so why is seller's solicitor proving us with vendor's name which is not yet on the land registry.

K_S

@london21 I'm a bit concerned. Does your solicitor know anything about auction purchases or a sub-sale? He sounds a bit green to be honest.

What exactly is he expecting from you?