Lender's appetite for mortgage offer extensions

SprostonGreenHead

Anyone have any insight into what lenders are like at the moment for extending offers? It's looking likely that we will need a 4-6 week extension from our lender Coventry Building Society. 

We secured a 5 yr fixed at 3.35% on 75% LTV for which the offer expires 8th Feb. Current rate for a similar product with the same lender is 5.09%. Probably a better shout would be Barclays 2yr tracker currently at 3.65%. I'm also worried because if we don't get the extension, my current contract (self employed outside ir35 contractor) will have less than 3 months remaining on it, and I probably won't get another offer (at worse terms than the standing one) without securing a promise of contract extension (which is unlikely with 3 months left to run).

A bit more background on my situation is here: https://forums.moneysavingexpert.com/discussion/6406704/not-sure-what-to-do-mortgage-offer-expires-before-adverse-possession-claim-will-be-complete.

JMA74

Officially Coventry do not extend offers but on another criteria site I use it says that they will consider on a case by case basis.   This would usually be if its a day or so difference and exchange has already taken place with an unexpected delay in completion date.  

Based on their policy i would not expect them to agree a 4-6 week extension that is known about months in advance unfortunately. 

SprostonGreenHead

JMA74 said:

Officially Coventry do not extend offers but on another criteria site I use it says that they will consider on a case by case basis.   This would usually be if its a day or so difference and exchange has already taken place with an unexpected delay in completion date.  

Based on their policy i would not expect them to agree a 4-6 week extension that is known about months in advance unfortunately. 

Yea, I read their policy on their intermediaries portal and it basically said this. Even when they were extending during the pandemic, on paper this was only for those who already exchanged. I don’t fancy our chances one bit. Additionally, although we are aware of the need for this extension now, according to our broker, Coventry don’t allow you to request an extension unless the current offer is expiring within 30 days.

By the time this offer expires, if not extended, my employment situation will be such that I won’t get another mortgage unless I switch contracts.

Feeling pretty deflated with the whole process right now. Seller caused this situation by wasting two months having filled out the wrong Land Registry form for Adverse Possession

ACG

Your offer is valid until the 8th Feb? Thats over 2 months to complete. 

MWT

ACG said:

Your offer is valid until the 8th Feb? Thats over 2 months to complete. 

The detail is in the linked thread, but the issue is the notice period on the adverse possession application...

SprostonGreenHead

MWT said:

ACG said:

Your offer is valid until the 8th Feb? Thats over 2 months to complete. 

The detail is in the linked thread, but the issue is the notice period on the adverse possession application...

Yep. Everything else has been dealt with - searches and enquires etc, pretty much.

The hold-up is the statutory notification to the owner (original developer) of a strip of land which the seller is attempting to obtain via adverse possession. They filled out the wrong form costing two months of wasted time, and Land Registry are legally bound to give 65 working days notice.

Sadly, our lender has refused to let us buy the property without this land, as it is included in the physical boundary. I'm exploring the idea of seller moving said boundary.

Read the linked thread for more info.

SprostonGreenHead

Update: My broker seems to be very confident Coventry BS will grant this extension. I must say I don't share her confidence, but she's infinitely more experienced than me in these matters. She did refer to other clients that got extensions with this lender but didn't expand on timescales or circumstances.

london21

SprostonGreenHead said:

Update: My broker seems to be very confident Coventry BS will grant this extension. I must say I don't share her confidence, but she's infinitely more experienced than me in these matters. She did refer to other clients that got extensions with this lender but didn't expand on timescales or circumstances.

Better to get it confirmed in writing for your own case as the rate has increased drastically.

Personally will try to complete ASAP within the deadline. 

SprostonGreenHead

london21 said:

SprostonGreenHead said:

Update: My broker seems to be very confident Coventry BS will grant this extension. I must say I don't share her confidence, but she's infinitely more experienced than me in these matters. She did refer to other clients that got extensions with this lender but didn't expand on timescales or circumstances.

Better to get it confirmed in writing for your own case as the rate has increased drastically.

Personally will try to complete ASAP within the deadline. 

Agreed. Unfortunately can't request said extension until current offer is within 30 days of expiring - lender's policy.

Definitely trying to get completed in the existing offer window. If seller's solicitors can get the developer-owner of the land to respond positively (or they respond of their own accord) this would achieve this. The other option is convincing lender to lend without the claim being complete, which might necessitate moving a physical boundary.

Relying on the extension is basically last-chance-saloon, but I do think despite best endeavours it will come down to that.