Conveyancing query - Mortgage Advance timing

RS2OOO

I was supposed to exchange contracts yesterday with completion planned for next Tuesday.

Long story short, exchange did not happen but the chain is still working towards achieving the completion date.

My conveyancer emailed today and said she can only hold the mortgage advance for 48 hours and will have to return the funds if we don't exchange by tomorrow morning.

Can anyone explain what might be going on here as I thought conveyancer wouldn't apply for mortgage funds until a day before completion?

The tone of the email kind of implies (but doesn't actually state) if the funds have to be returned to mortgage provider then completion for next Tuesday might be off the cards.

I'm a little confused by all this and not sure I fully understand what's going on.

TheJP

The solicitor would usually draw down the funds 5 days before completion to ensure it arrives in time due to the admin process at the bank. This is standard procedure and as the solicitor states the bank will want their money back if exchange doesn't take place in 48 hours. Once exchange takes place the solicitor will have to request the funds which depending on the bank will need to be 5 days before completion.

RS2OOO

Thank you, that explains clearly and now I understand.

Originally all parties agreed to exchange on Monday for Completion this Friday 17th.

Monday morning the buyers solicitor come back with another enquiry. They Subsequently requested to push exchange to Tuesday (yesterday) and complete next Monday (which I had to push to next Tuesday due to no removals availability). All parties in agreement.

Tuesday morning (yesterday) buyers solicitor came back again saying they'd written to buyers mortgage company querying part of the offer and therefore could not exchange contracts until Mortgage company responds, but were still agreeable to completing next Tuesday.

My Conveyancer was clearly very angry when I spoke with her on the phone, suggested buyers solicitors were incompetent / unhelpful etc, then followed up with the email I refer to in the OP about potentially returning my Mortgage funds.

This whole process been a rollercoaster ride. We are 60% packed ready to go, including everything Xmas related....each day that goes by seems to bring new complications.

user1977

The solicitor might want to request the funds 5 working days before completion, but I wouldn't say it was normal for the solicitor to already have the funds a week before completion - generally lenders don't want the money in the solicitors' account for more than a few days. Were you previously aiming for an earlier completion date?

TheJP

user1977 said:

The solicitor might want to request the funds 5 working days before completion, but I wouldn't say it was normal for the solicitor to already have the funds a week before completion - generally lenders don't want the money in the solicitors' account for more than a few days. Were you previously aiming for an earlier completion date?

Was supposed to be this Friday from the OP most recent post. I would say solicitor drew down funds ready for Friday and now that isn't happening will need to return but may not have the funds ready for Tuesdays new completion date.

OP the bank may be able to prioriotise sending funds over if they are returned before you exchange, get your solicitor to check this.

RS2OOO

TheJP said:

user1977 said:

The solicitor might want to request the funds 5 working days before completion, but I wouldn't say it was normal for the solicitor to already have the funds a week before completion - generally lenders don't want the money in the solicitors' account for more than a few days. Were you previously aiming for an earlier completion date?

Was supposed to be this Friday from the OP most recent post. I would say solicitor drew down funds ready for Friday and now that isn't happening will need to return but may not have the funds ready for Tuesdays new completion date.

OP the bank may be able to prioriotise sending funds over if they are returned before you exchange, get your solicitor to check this.

Spot on - that is exactly the situation.

I will ask my solicitor to check as per your suggestion, but in all honesty my Solicitor initially said her firm will not be doing completions beyond Monday 20th (Xmas etc), but I suspect had little choice but to agree on revised Tuesday completion as she'd already drawn down the Mortgage funds. If she has to send funds back I suspect there's zero chance she's going to want to request them again this side of Christmas, more so with the unpredictability of my buyers sols.

RS2OOO

Having failed to exchange yesterday, failed again today, and then a call from removals to say they're giving my slot to someone else and no more slots till January, my solicitor will be returning the mortgage advance after all.

Spent the evening unpacking boxes ready for Christmas!

babyblade41

RS2OOO said:

Having failed to exchange yesterday, failed again today, and then a call from removals to say they're giving my slot to someone else and no more slots till January, my solicitor will be returning the mortgage advance after all.

Spent the evening unpacking boxes ready for Christmas!

I know that feeling from my last move ... hopefully exchange at least will happen before xmas 

TheJP

RS2OOO said:

Having failed to exchange yesterday, failed again today, and then a call from removals to say they're giving my slot to someone else and no more slots till January, my solicitor will be returning the mortgage advance after all.

Spent the evening unpacking boxes ready for Christmas!

Sorry to hear this but at least you can somewhat relax for Christmas and get it done in the new year.