Quick Exchange date

2006eyo

TAI for any replies : 

so after a fairly long/moderate  process of buying our house it seems the sellers (property developers) are a bit fed up with length of time our solicitors have taken to get to this point.  As it stands we have just posted back our contract and land registry documents the sellers have this evening said ‘exchange by next Friday or we will pull out’. But having gave our money box LISA details to our solicitors weeks ago the money is still in our Moneybox app.  On the app it says please give 3 weeks. For funds to be transferred. But our solicitor wanted to after a 4 week backlog raise further questions about the property   Are the funds from this actual app what they expecting to be exchanged next Friday with contract ?  I keep reading conflicting stories on the internet 


its hard for 1st time buyers I think solicitors, estate agents etc don’t take into account when you have no idea if you should be pressuring them or waiting and letting process take it’s course.  If this falls through we will be gutted yet I don’t think we done much wrong

thanks  

Thrugelmir

Developers always apply pressure. They want to know that the sale is going through. Difficult as it is don't get overly stressed. 

2006eyo

Yeah sometimes I think no way they will pull out after 18 weeks but I have no idea :-).   So should my Moneybox LISA  deposit funds be ready on exchange date. Should these funds have already been requested for  

GDB2222

What deposit have you agreed? 10%? And how much of that is outside the Lisa?

2006eyo

GDB2222 said:

What deposit have you agreed? 10%? And how much of that is outside the Lisa?

Purchase price is 235k and we have £27k inside LISA. Of which we will be using 23.5k as deposit 

Thrugelmir

Remember your solicitor also works for you mortgage lender. The monies won't be released until everything is confirmed as being satisfactory. 

What's caused the delays so far? 

2006eyo

Thrugelmir said:

Remember your solicitor also works for you mortgage lender. The monies won't be released until everything is confirmed as being satisfactory. 

What's caused the delays so far? 

We 1st time buyers and property was vacant so I thought would be fairly fast. Our solicitors had a 4 weeks backlog to raise enquiries about property which coincided over Xmas period.  Which I kind of expected.  Once January started the seller and their solicitor been a bit heavy and off. I think they was tired of getting auto and generic  replies from our solicitors.  I generally believe we have been on the button every single time we needed somethin filled in. Not it’s got to an email basically saying in red.    ‘Exchange next Friday or we pulling out’   Now I am worried the ISA isn’t arranged even though we asked our solicitor to do this in December.   They said because of time scales they can’t keep hold of funds and will only request when needed


to make matters worse we only used our solicitor as they where  on the estate agents board or solicitors and it would help stream line the process APPARENTLY 
😩 

GDB2222

2006eyo said:

GDB2222 said:

What deposit have you agreed? 10%? And how much of that is outside the Lisa?

Purchase price is 235k and we have £27k inside LISA. Of which we will be using 23.5k as deposit 

You provide the deposit at the same time as exchanging contracts. It needs to be cleared funds in your solicitor’s account so exchange can take place. If your Lisa really needs 3 weeks to provide the funds, exchange cannot happen for 3 weeks. 

I’m not sure about the process for drawing down the funds? Suppose that you initiate this now, but the contract falls through, can you return the funds without losing?

If there are still outstanding issues on the property, those have to be sorted before exchanging. However, you can start the Lisa drawdown while waiting, providing that’s reversible if it fall apart.

eddddy

2006eyo said:

to make matters worse we only used our solicitor as they where  on the estate agents board or solicitors and it would help stream line the process APPARENTLY 

What that generally means is that estate agent gets a referral fee (probably a few hundred pounds) for passing your details to the solicitor.

Put another way, it would mean that a few hundred pounds of the legal fee you pay doesn't go to the solicitor, it goes straight back to the estate agent - just for passing over your name.

Many estate agents just refer people to the solicitor who pays the biggest referral fee - not the solicitor who is best or fastest.


It's worth telling your estate agent that the solicitor they referred you to is so bad that the sale might fall through. So assuming the estate agent is paid on completion, their referral means they might lose their sales commission fee.