Failure to complete

TripleH

When we were selling our flat we had a long period of it being on the market, in that time our fixed rate term for our mortgage ended so we got a new rate.

We were with HSBC and went to HSBC to remortgage. We didn't get the cheapest monthly mortgage but the one with no redemption fees.

Op the mistake you made was changing lender. This close to selling  you'd have been better going to your existing lender and finding an alternative product instead of the best deal available on the market (the difference would be negligible or far less than the potential costs you face now). I assume at the point of remortgaging you didn't have a date for exchange and completion. If you did then the sensible option would have been to pay the standard variable rate amount to avoid problems such as this.

csgohan4

As OP has exchanged and completing soon, there is no way LR will be able to sort something out within 2 weeks or even 1 month. As I mentioned, it took them 3 months to update the vendors charge for my lenders and this was pre covid

I'm afraid as you may not be able to complete as lender may not release money if they are not first charge, you will fail to complete and be prepared to lose alot of money. 

As above, if you remortgaged with same lender with no ERC, it might have been doable, but you saw savings instead of the pragmatic side of things. . This is the cold hard reality unfortunately. I hope someone will learn from this thread.

Over the years we've seen others make mistakes before completion, like their mortgage offer withdrawn for buying a new car, buyers ending up on CIFAS/ National hunter for submitting multiple mortgage applications without telling their broker and indeed having several on the go. This will be added to them as things not to do and rightly so. 

OP you will get this sorted but not without potential significant capital loss and time, all of which were decision you made. 

p00hsticks

csgohan4 said:

I'm afraid as you may not be able to complete as lender may not release money if they are not first charge, you will fail to complete and be prepared to lose alot of money.

I'm not sure that that's true - in all sales the Land Registry is only updated with the new owner and lender after completion, so if it's a new mortgage the lender releasing the money won't ever be shown as first charge at the point of completion.

The issue comes with trying to settle the charge already showing as registered on the title at the point of completion, as the one there (with HSBC) has in fact been settled prior to exchange, and there is another one (with Nationwide) which the title has not as yet been updated to reflect. So I imagine the solicitor is going to need something from HSBC to confirm there is actually no charge outstanding, des[ite what the Land Registry says, and also try to come to some arrangement with the Nationwide to settle the charge that is not actually showing yet.

csgohan4

p00hsticks said:

csgohan4 said:

I'm afraid as you may not be able to complete as lender may not release money if they are not first charge, you will fail to complete and be prepared to lose alot of money.

I'm not sure that that's true - in all sales the Land Registry is only updated with the new owner and lender after completion, so if it's a new mortgage the lender releasing the money won't ever be shown as first charge at the point of completion.

The issue comes with trying to settle the charge already showing as registered on the title at the point of completion, as the one there (with HSBC) has in fact been settled prior to exchange, and there is another one (with Nationwide) which the title has not as yet been updated to reflect. So I imagine the solicitor is going to need something from HSBC to confirm there is actually no charge outstanding, des[ite what the Land Registry says, and also try to come to some arrangement with the Nationwide to settle the charge that is not actually showing yet.

probably correct, but the problem with the old charge is problem and time is running out for the OP with completion soon. I doubt this will be sorted within 2-4 weeks given there will be the old solicitor, new solicitor, old lender and new lender involved. Lining up your ducks in this current situation will be difficult in a timely manner

wilfred30

The OP is due to complete this coming Tuesday 28th so only has 2 days to sort it out before being served with a Notice to Complete which, depending on the size of the chain, could cost her quite a lot of money.

babyblade41

God what a nightmare . The savings could have been only minimal , knocked completely out by the possible cost of failure to complete 

I hope all that are in the chain can minimise the costs for you if this happens. I don't think you will getaway from the loss of deposits on removals up and down the chain and hopefully the situation gets sorted ASAP so any costs involved are as minimals as possible .
I'm afraid you will have to deal with the wrath of the chain though and in all honesty I'd be fuming 

ellieh01

The solicitor said the remortgage solicitor cancelling their application to update the register should work too. Anyone have experience with this?

btw our buyers are cash buyers, so no lender to worry about. 

AdrianC

ellieh01 said:

The solicitor said the remortgage solicitor cancelling their application to update the register should work too. Anyone have experience with this?

It's going to leave the wrong charge recorded, though.

babyblade41

Is your solicitor capable of rectifying this in a timely manner? You need to make sure they are doing all they can with correct knowledge of the procedure or they can make a bigger mess than you are already in 

sheramber

You say your solicitor did not know you had remortgaged so how would they know that the charge on the LR was not that of the current mortgage.

Saying it was 'normal' may have been referring to the charge for the current mortgage.