Exchanging without document

TXC

Hi all

Seller's solicitors have proposed that we exchange today without a mortgage redemption statement - mine have gone back asking for any previous redemption figures that they were aware of and if they know that the sale proceeds will cover purchase. As well as give an undertaking that the outstanding mortgage charge will be paid and its their job to ensure this.

I'm a FTB bottom of chain, 90% LTV 10% deposit. Would this put me at any risk?

Has anyone ever seen this happen before? From what I can see online its a very unorthodox way of doing things and to me it looks like the sellers sol is trying to save exchange by cutting this corenr as they didnt apply in time for the doc. I will follow 100% my solicitors advice on this but just wanted to see if anyone had ever seen this before

K_S

@txc Unless I'm missing something obvious, with most mainstream lenders the redemption statements don't take longer than 4-5 working days from the time the request is made by the conveyancer.

There are exceptions to this, primarily closed-book lenders like the ones that bought ex-northern rock mortgages who can be extremely slow with paperwork.

Thrugelmir

Have you been pushing hard for exchange and completion? 

TXC

Thrugelmir said:

Have you been pushing hard for exchange and completion? 

Seller and I both have as we have been working to tomorrow for completion as top of chain gave an ultimatum last month of this friday before house goes back on market

user1977

Unless the vendors suspect they're on the verge of being in negative equity, I don't see why this ought to be a particular concern for anyone.

And it's not really any of the purchaser's business - you're getting the vendor's contractual commitment to complete and redeem their mortgage. How they achieve that is up to them.

TXC

user1977 said:

Unless the vendors suspect they're on the verge of being in negative equity, I don't see why this ought to be a particular concern for anyone.

And it's not really any of the purchaser's business - you're getting the vendor's contractual commitment to complete and redeem their mortgage. How they achieve that is up to them.

That's what I thought tbh, my file has been completed and money on hand for two weeks now. Yes we have been both pushing very hard for exchange/completion as we've been working to this date for over a month, Surely this is a decision for the vendor to make as it feels like there's no risk to me. 

TBG01

user1977 said:. How they achieve that is up to them.

Which therein could be a massive issue if they can't afford to.

It's all well and good saying you've bought the property but the Land Registry won't complete the application until the lenders charge is redeemed. 

user1977

TBG01 said:

user1977 said:. How they achieve that is up to them.

Which therein could be a massive issue if they can't afford to.

It's all well and good saying you've bought the property but the Land Registry won't complete the application until the lenders charge is redeemed. 

Yes, but that's a completion issue, not an exchange one. Depending on how far in advance you exchange, it might not even be possible to get a redemption statement valid for the completion date. 

Thrugelmir

TXC said:

Thrugelmir said:

Have you been pushing hard for exchange and completion? 

Seller and I both have as we have been working to tomorrow for completion as top of chain gave an ultimatum last month of this friday before house goes back on market

Then sounds as if your sellers solicitors aren't in a position to yet. This excuse is a just delaying tactic to gain time. 

TXC

Well - we've exchanged! my sol has just talked me through it and is confident with what theyve put in place that there's no risk to me, there's an undertaking in place with sellers sol that they will clear outstanding charge. Last statement they had on file from feb indicated enough coverage from my sale.