Estate agent won't accept proof of deposit, can anything be done?

real_gone

Hi,

I am separating from my spouse with the intention of moving into separate properties ASAP. Our current home is owned solely by my partner, though the intention is to split the equity after it is sold with me, so I have enough for a deposit on a place of my own.

My partner has had an offer on a house accepted and is in the process of porting their current mortgage, and is due to complete in December all being well. I have also made an offer on another property which has been accepted, with the vendor aware of the situation that I won't have the deposit until then.

I'm able to provide everything the estate agent needs, except proof of deposit in a form they will accept. Until that happens, they refuse to take the house off the market - fair enough. But they're wanting a letter from my spouse's solicitor stating the deposit money will come to me, which they say they can't do, since the money is my partner's to do as they want with after the sale - they can't force anything legally.

The split is amicable and my partner is willing to do whatever they can to support me in getting the house. I've offered the EA a statement of the funds they are due from the sale (from their solicitor) along with a letter from my spouse themselves confirming all the usual gift conditions (non repayable, no interest in property I want to buy, etc), but this apparently isn't good enough to take the house I offered on off the market - it needs to be from my spouse's solicitor, on a letterheaded document.

So I'm in the unenviable position of having an accepted offer but if someone else comes along with the same offer, with simpler circumstances, it's practically theirs. Understandable from the vendor's perspective, I suppose, though I'd be pretty gutted to lose this place.

The EA has said that if I can show I've had a mortgage accepted, they'll accept this as proof of deposit - as the gift will be dealt with in course of an application. Thought I have had a broker suggest to me that I might find the mortgage application difficult if the house is still on the market, which if true puts me in a bit of a catch 22.

So is there anything I can do to try get the house off the market - should I just forge ahead with the mortgage application, hope the lender will not mind the house is still on the market, and pray no-one else comes in before the application is complete?

Is my spouse's solicitor being unreasonable to not provide such a letter for me, if my spouse themselves fine with it - or is the EA being unreasonable not accepting a statement from my spouse along with proof of their funds?

One thing to mention is that I haven't instructed a solicitor of my own yet (was planning to do so after application) - would they be able to help me if my partner's won't?

I'm hoping to buy in England, if relevant.

eddddy

I'm wondering if you've 'spooked' the EA in some way - could it be by the way you explained the situation?

In your position, I would have simply said to the EA that my spouse and I were selling a property, and we'd each be getting 50% of the equity.

(TBH, I think the way you've presented the info in your post above makes the situation sound unnecessarily complex.)


Maybe try writing a letter for the EA signed by both you and your spouse, simply saying that the current property is under offer for £x, the outstanding mortgage is £y, so you will each receive £z in equity.

And provide details of the EA selling the current property, so that the EA can contact them to check on the progress of the sale. And give them details of the solicitor you will be using for the purchase.

I wouldn't discuss the letter with the EA in advance - just write it and give it to them, saying that you assume that will be acceptable to them.

Doozergirl

I agree that you've made it sound too complicated.  The story should have been as the poster above has laid out.  You're splitting up, selling 'the' house which is already under offer and splitting the proceeds.  

You are also in a chain, you don't have a deposit, so there's little point trying to prove that part of it.  

I also have no idea what your mortgage broker is talking about.  Lenders don't care how a property is marked on Rightmove or whatever.  They'll value what they're told to value.     All you need at this stage is a 'decision in principle' from a lender.  

I think you need to try and forge a relationship with the vendor here,
build a rapport to show your emotional
investment, and try not to over explain yourself.   Have you met them?  

user1977

real_gone said:

they're wanting a letter from my spouse's solicitor stating the deposit money will come to me, which they say they can't do, since the money is my partner's to do as they want with after the sale - they can't force anything legally.

It can't be forced, but your spouse could instruct their solicitor that they want the money transferred to you after completion, and then their solicitor can confirm they've been instructed to do that. Has nobody suggested that?

Snookie12cat

This is no different to having a gifted deposit which loads of buyers have. As above, I really think you have explained it in a really strange way and overcomplicated it. 

Too late to change it now so if you are serious, press ahead with the mortgage and try and get it secured 

real_gone

Thanks all for the comments, I hear your points about perhaps having explained this in an overly complicated way - though the intention was always to be as transparent with the EA and vendor as possible. It is a gifted deposit, but not one I can simply send a bank statement to confirm the existence of at this moment. I am a first time buyer, but I am essentially part of a chain.

The EA initially acted as though this was a highly unusual situation and I had to bump my offer up just for the vendor to take me seriously.

I'll take your suggestions of asking my spouse to instruct her solicitor, providing a letter in the interim and perhaps asking to speak to the vendor (the house is empty at the moment so they weren't there at any viewings). I'm no hard bitten negotiator and admittedly naive in these matters but becoming less so by the day!

Snookie12cat

real_gone said:

Thanks all for the comments, I hear your points about perhaps having explained this in an overly complicated way - though the intention was always to be as transparent with the EA and vendor as possible. It is a gifted deposit, but not one I can simply send a bank statement to confirm the existence of at this moment. I am a first time buyer, but I am essentially part of a chain.

The EA initially acted as though this was a highly unusual situation and I had to bump my offer up just for the vendor to take me seriously.

I'll take your suggestions of asking my spouse to instruct her solicitor, providing a letter in the interim and perhaps asking to speak to the vendor (the house is empty at the moment so they weren't there at any viewings). I'm no hard bitten negotiator and admittedly naive in these matters but becoming less so by the day!

I do find it wierd they won't accept a letter from her to say she is giving you the deposit when the house sells. 
No different to a parent giving the money. They could still change their mind at the final hour. 
It's not a good situation and I imagine if they had other offers you might not have got it, because the deposit isn't yours and can be withdrawn at any time and you are in a chain. 

eddddy

real_gone said:

It is a gifted deposit, but not one I can simply send a bank statement to confirm the existence of at this moment. I am a first time buyer, but I am essentially part of a chain.

As I say, that's a very unhelpful / confusing way of describing your situation. (I think it's probably confusing the EA.)

I can't see any benefit to describing your situation in that way.

It would be more helpful and meaningful to say that the current property has to be sold, and you will receive 50% of the proceeds, to be used as your deposit.