Completion how do i deal with this and who is in the wrong

canaldumidi

Despite reading most of the responses (last active 4.19 pm), OP seems very reluctant to respond to the repeated requests for information and numbers, merely repeating 'an error made', 'FA admitted an error' etc.

So responders are simply guessing, and requesting more info. However good the guesses, and consequential conclusions, it's not much help tothe OP (and frustating to us!) till the facts are made clear.

Thrugelmir

Jammie01 said:

The way that the numbers were presented to us made sense, we novated money from property A to property B so we could get a residential mortgage on property B and Property A would have a larger BTL mortgage to cover the sum moved. However clearly we were mislead by the IFA, he is the professional!  To be clear we want to move to the new house and currently the IFA is working on a solution, we have till the 20th Oct to get this done so I am sure you appreciate that time is very short to get new mortgages arranged and meet completion. the thought of having to claim for lost money is the last thing we want. 

How precisely were the numbers presented to you? I assume that you had done some calculations yourselves to come up with the idea and approach the broker in the first place. 

Kyresa

Jammie01 said:

The FA’s figures were incorrect, they have admitted to that. But the solicitors should have checked these?

No.. There are some things you have to do yourself.  Making sure you have the funds to complete a purchase being one of them!

saajan_12

Deleted_User said:

pretty much every time I speak to someone wanting to rent out their old home and take a new mortgage they ave got their figures completely wrong.   Its gets confused with them thinking they arent paying off their old mortgage, they are taking a new mortgage.  So they end up double counting the same money somewhere along the line.  

Its easily done,  no excuse for a broker to make the mistake of course but I can see why a client would lean on the expertise of brokers and solicitors to make sure it is all done properly.  

99% of the time clients will just leave it up to me to make sure the money gets to the right place and they are paying me for taking the stress away from them. 

I can easily see how this can happen though.  Sounds like its fixable with a bit of time.  If its just a case of amending a figure and it still fits on rental and valuation then a new offer could be on the table in a matter of days.  With no new deed to sign then funds release might not even be delayed. 


The other alternative would be that someone made a typo submitting the application and applied for the wrong amount.  Ive certainly done that before! 

sorry, in what universe is it "easily done" that you offer on a house and continue in the purchase all the way to exchange without adding up new mortgage + equity extracted + money in your bank acc and checking it totals the purchase price. Perhaps some fees are easily missed, but 100k?

Also time aside, this is only fixable if the OP can pass affordability for the extra 100k - so not necessarily just a question of time. 

SDLT_Geek

saajan_12 said:

Deleted_User said:

pretty much every time I speak to someone wanting to rent out their old home and take a new mortgage they ave got their figures completely wrong.   Its gets confused with them thinking they arent paying off their old mortgage, they are taking a new mortgage.  So they end up double counting the same money somewhere along the line.  

Its easily done,  no excuse for a broker to make the mistake of course but I can see why a client would lean on the expertise of brokers and solicitors to make sure it is all done properly.  

99% of the time clients will just leave it up to me to make sure the money gets to the right place and they are paying me for taking the stress away from them. 

I can easily see how this can happen though.  Sounds like its fixable with a bit of time.  If its just a case of amending a figure and it still fits on rental and valuation then a new offer could be on the table in a matter of days.  With no new deed to sign then funds release might not even be delayed. 


The other alternative would be that someone made a typo submitting the application and applied for the wrong amount.  Ive certainly done that before! 

sorry, in what universe is it "easily done" that you offer on a house and continue in the purchase all the way to exchange without adding up new mortgage + equity extracted + money in your bank acc and checking it totals the purchase price. Perhaps some fees are easily missed, but 100k?

Also time aside, this is only fixable if the OP can pass affordability for the extra 100k - so not necessarily just a question of time. 

It is also potentially fixable (I expect) if OP can sell the existing home, or see if, even at this late stage, the developer can be persuaded to take it in part exchange for the new build home OP is buying.

AdrianC

SDLT_Geek said:

saajan_12 said:

Deleted_User said:

pretty much every time I speak to someone wanting to rent out their old home and take a new mortgage they ave got their figures completely wrong.   Its gets confused with them thinking they arent paying off their old mortgage, they are taking a new mortgage.  So they end up double counting the same money somewhere along the line.  

Its easily done,  no excuse for a broker to make the mistake of course but I can see why a client would lean on the expertise of brokers and solicitors to make sure it is all done properly.  

99% of the time clients will just leave it up to me to make sure the money gets to the right place and they are paying me for taking the stress away from them. 

I can easily see how this can happen though.  Sounds like its fixable with a bit of time.  If its just a case of amending a figure and it still fits on rental and valuation then a new offer could be on the table in a matter of days.  With no new deed to sign then funds release might not even be delayed. 


The other alternative would be that someone made a typo submitting the application and applied for the wrong amount.  Ive certainly done that before! 

sorry, in what universe is it "easily done" that you offer on a house and continue in the purchase all the way to exchange without adding up new mortgage + equity extracted + money in your bank acc and checking it totals the purchase price. Perhaps some fees are easily missed, but 100k?

Also time aside, this is only fixable if the OP can pass affordability for the extra 100k - so not necessarily just a question of time. 

It is also potentially fixable (I expect) if OP can sell the existing home, or see if, even at this late stage, the developer can be persuaded to take it in part exchange for the new build home OP is buying.

So who's going to swallow the £100k hit, if not the OP?

Section62

AdrianC said:

So who's going to swallow the £100k hit, if not the OP?

Isn't that accounted for in the equity in the BTL, and the swallowing part is the OP no longer owning the BTL property.

If not, then I'm even more confused how this plan was ever going to work.

SDLT_Geek

AdrianC said:

SDLT_Geek said:

saajan_12 said:

sorry, in what universe is it "easily done" that you offer on a house and continue in the purchase all the way to exchange without adding up new mortgage + equity extracted + money in your bank acc and checking it totals the purchase price. Perhaps some fees are easily missed, but 100k?

Also time aside, this is only fixable if the OP can pass affordability for the extra 100k - so not necessarily just a question of time. 

It is also potentially fixable (I expect) if OP can sell the existing home, or see if, even at this late stage, the developer can be persuaded to take it in part exchange for the new build home OP is buying.

So who's going to swallow the £100k hit, if not the OP?

We do not have figures, but, if it is possible to sell the existing property, that would release all of the equity in the existing property, whereas the proposed remortgage would only release a proportion of it.

Jammie01

All, thank you very much for your comments all very useful and have opened me up to alternative ways to deal with the sale and to deal with the FA, it appears that the error that was made was exactly as JMA47 said i.e. the numbers were double counted, ultimately we are paying for the FA's expertise in this situation and his mistake. These calculations were questioned by both us as we couldn't understand them and also the solicitor asked, the FA responded that they were as they should be. £100k is a big hole but we now have a plan that is being actioned and hopefully we will still be able to buy the house.

deannagone

Thanks for the update, will enable people to learn from what has happened.

I hope it works out for you in the end.  I would advise not signing any 'no further amount will be claimed' agreement until you have an idea how much this will cost you.  I suspect the FA will face a pretty big bill and is trying to avoid this.  Speak to your solicitor about this too.