Chain delays - options, financial or otherwise?

tigerminxy

I'll try very hard not to turn this into a rant against useless estate agents, solicitors and buyers, but...

For several weeks we've been setting up relatively small chain involving three parties (including us). We are buying a new build and have just been served notice to complete the purchase in 10 days. Everyone in the chain has been aware that this would happen, and all along we've been working to this date and been told by all concerned that the only thing delaying the exchange has been getting a definite completion date. However, we have just found out that our buyers' buyer has been dilly-dallying and doesn't think they'll be able to exchange until next month. :mad:

We've asked the developer to see what they can do to help. (We are hoping, but not expecting, they will come up with some bright idea.)

We're also going to speak to the current mortgage providers to see if they'll extend us more cash so that we can cover the shortfall on the other purchase. (We have plenty of equity, it just needs to be released!)

I'm also going to look into bridging loans but my concern is that they'll take too long to sort out, given that we're supposed to complete in 10 days time.

Anyone got any bright ideas?

silvercar

Hopefully the developer will be accommodating, after all if you can't complete in 10 days they have no chance of finding someone else who can.

tigerminxy

Thanks, Silvercar. My main hope rests with the fact that the developer must deal with this kind of thing on a regular basis. My wife is just desperate to move in before Christmas, though, and I'm trying to think of other options as a backup and contingency.

Our current mortage providers said they'd want to revalue the place (despite the fact that we're asking for far less than the equity we have) and that would take four weeks, so that's not an option. We're currently trying the new mortgage lender to see if they can help.

tigerminxy

Well, Linden Homes have said outright that they won't do anything to help. They just said that they'll serve some sort of legal notice if we can't complete and trigger some sort of penalty clause then take us to court.

Nice people.

silvercar

There are lenders that can do mortgage offers within a few days. Ask on the mortgage board. You could (if your income figures stack up, take a new mortgage on your new place (ie the cost of the new place less any savings you have) and tell the new lender that you are retaining your current mortgage as a BTL. Provided the new mortgage doesn't have early redemption penalties you can then reduce it down until the sale of your current house completes.

The other option is get a bridging loan, this could prove costly, I think you are looking at 1% of the amount required. Bridging finance should be available within 48 hours if needed.

Do you have a mortgage advisor? They should be able to sort this out, thought there will be costs involved from the lenders.

tigerminxy

Thanks, Silvercar.

Just in case this proves useful to anyone else suffering the same stress as me (I only eventually got to sleep last night due to mental exhaustion, I think), West Brom, the lenders doing our 'normal' mortgage agreed to add on an SVR interest-only mortgage for the extra amount which can be paid back penalty-free when we get the money from the sale.

I've not seen anything positive about West Brom on these boards, so I just wanted to put it on record that the mortgage advisor we dealt with brilliant - she was so sympathetic, understanding, professional and efficient, I cannot speak highly enough of her.

silvercar

Glad you have a solution. Good luck with the move!