Failed to complete house purchase after exchange due to mortgage lender not releasing funds

Brie

Maybe I've misunderstood but it sounds like the sellers didn't have a recent report and because of that it's your fault that the sale isn't proceeding as expected?  Or should it be your solicitor's fault for not noticing?

Thrugelmir

Woodsie81 said:

mr_stripey said:

what a nightmare. Can't offer any real advice I'm afraid, but I really feel for you. Not helpful to have the sellers screaming at you either!

Thank you - the being screamed at is actually the worst part. 

Worth remembering that this is a business relationship. Keep it as such. No need for close personal contact. Keep at arms length. 

MWT

Brie said:

Maybe I've misunderstood but it sounds like the sellers didn't have a recent report and because of that it's your fault that the sale isn't proceeding as expected?  Or should it be your solicitor's fault for not noticing?

The sellers report should never have been used in the first place.

If that went via the solicitor then they should have spotted the age and the name on the report.

Verifying the quality of water several years ago isn't all that helpful...

Woodsie81

Brie said:

Maybe I've misunderstood but it sounds like the sellers didn't have a recent report and because of that it's your fault that the sale isn't proceeding as expected?  Or should it be your solicitor's fault for not noticing?

I don't think they needed to have a recent report. And if they did, it wouldn't have helped this situation as the lender has now stipulated that the report needs to be in our name.

The mortgage terms are unclear in that they say we must provide evidence that 'the water supply meets statutory regs for safe drinking water' so I don't even really blame the solicitor for not seeing that as a requirement for a new report to be conducted in our name. And it wasn't clarified at the point of exchange, only just before completion

MWT

Woodsie81 said:

And it wasn't clarified at the point of exchange, only just before completion

The lender doesn't really care too much about exchange, they have the right to ask further questions and repeat credit report reviews/bank statements etc. all the way up to completion and if they don't like what they see they can pull the offer.

It is frustrating for sure but it is at the root of all the advice on here about don't doing anything that could impact on anything the lender might look at between exchange and completion.

The water report is not a common one, but the same problems come up with regard to damp or structural reports more often, they need to be a current report to you, not an older report to someone else. 

Woodsie81

MWT said:

Woodsie81 said:

MWT said:

Has your seller served you with a 'notice to complete' ?

Not yet - have been reading about that after our solicitor mentioned this is what she would expect to happen next but nothing so far. We are only one day past our agreed completion date so maybe it'll come later... 

The longer they leave that the better for you and the lower the chances they will have a legitimate claim for damages as they are failing to make time the essence of the contract at this point...

Take your solicitor's advice and unless they say otherwise do keep the communication through them to minimise the risk of inadvertently creating any liability that you do not already have.  

Makes sense. Thanks

Woodsie81

MWT said:

Woodsie81 said:

And it wasn't clarified at the point of exchange, only just before completion

The lender doesn't really care too much about exchange, they have the right to ask further questions and repeat credit report reviews/bank statements etc. all the way up to completion and if they don't like what they see they can pull the offer.

It is frustrating for sure but it is at the root of all the advice on here about don't doing anything that could impact on anything the lender might look at between exchange and completion.

The water report is not a common one, but the same problems come up with regard to damp or structural reports more often, they need to be a current report to you, not an older report to someone else. 

OK. Well that explains why the mortgage lender is standing firm then. Do you think it's something the solicitor should have picked up on? The solicitor is not new or inexperienced.

We have been waiting on this house for 7 months, our survey was done in October, we've had so much time to do all the checks we needed to, just didn't know this one was necessary

MWT

Woodsie81 said:

MWT said:

Woodsie81 said:

And it wasn't clarified at the point of exchange, only just before completion

The lender doesn't really care too much about exchange, they have the right to ask further questions and repeat credit report reviews/bank statements etc. all the way up to completion and if they don't like what they see they can pull the offer.

It is frustrating for sure but it is at the root of all the advice on here about don't doing anything that could impact on anything the lender might look at between exchange and completion.

The water report is not a common one, but the same problems come up with regard to damp or structural reports more often, they need to be a current report to you, not an older report to someone else. 

OK. Well that explains why the mortgage lender is standing firm then. Do you think it's something the solicitor should have picked up on? The solicitor is not new or inexperienced.

I'm surprised it wasn't noticed, especially as the report was not even in the name of the seller either.

How old was it?

Thrugelmir

Woodsie81 said:

MWT said:

Woodsie81 said:

And it wasn't clarified at the point of exchange, only just before completion

The lender doesn't really care too much about exchange, they have the right to ask further questions and repeat credit report reviews/bank statements etc. all the way up to completion and if they don't like what they see they can pull the offer.

It is frustrating for sure but it is at the root of all the advice on here about don't doing anything that could impact on anything the lender might look at between exchange and completion.

The water report is not a common one, but the same problems come up with regard to damp or structural reports more often, they need to be a current report to you, not an older report to someone else. 

OK. Well that explains why the mortgage lender is standing firm then. Do you think it's something the solicitor should have picked up on? The solicitor is not new or inexperienced.

Did the sellers provide the report to you, then you past it onto your solicitors? 

Woodsie81

Thrugelmir said:

Woodsie81 said:

MWT said:

Woodsie81 said:

And it wasn't clarified at the point of exchange, only just before completion

The lender doesn't really care too much about exchange, they have the right to ask further questions and repeat credit report reviews/bank statements etc. all the way up to completion and if they don't like what they see they can pull the offer.

It is frustrating for sure but it is at the root of all the advice on here about don't doing anything that could impact on anything the lender might look at between exchange and completion.

The water report is not a common one, but the same problems come up with regard to damp or structural reports more often, they need to be a current report to you, not an older report to someone else. 

OK. Well that explains why the mortgage lender is standing firm then. Do you think it's something the solicitor should have picked up on? The solicitor is not new or inexperienced.

Did the sellers provide the report to you, then you past it onto your solicitors? 

It was sent to our solicitors from our seller's solicitors in response to their enquiries prior to exchange. So the seller's solicitors also thought that would be good enough to demonstrate the water's quality.