Mortgage extension Leeds Building Society

Newbiefirsttimesilobuyer2023

My 6 months mortgage offer is expiring in less than next two weeks…I am buying  a new build house and I had a failed completion last week due to building control issues which I was informed of on completion day so the funds were returned to the lender after being transferred to the housing developer’s solicitor!!!! NIGHTMARE!!!

Nothing has changed in regards to my finances, in fact my salary has increased since the initial application and I haven’t taken any new lines of credit. 

My mortgage broker is very relaxed about requesting an extension with only about a week left on the offer. 

My solicitor is also saying to wait until early next week to see if we can complete with the current offer. 

Remedial works are required plus sign off on this and the works haven’t started yet…I’m not sure how to play this. 

Questions: 
- Am I too close to the deadline to request an extension?
- Any ideas how long it will take them to make a decision on the extension?
- Should I do it sooner rather than later? 

- Is there anything I need to consider?

 Thanks!

eddddy

Newbiefirsttimesilobuyer2023 said:

I am buying  a new build house and I had a failed completion last week due to building control issues which I was informed of on completion day so the funds were returned to the lender after being transferred to the housing developer’s solicitor!!!! NIGHTMARE!!!

Are you saying that...

• 1) you exchanged contracts some time ago, then a formal notice of completion was served on you (maybe 10 days in advance), but then the developer failed to complete? Or

• 2) You haven't exchanged contracts - and your plan was/is to exchange and complete on the same day?

Or something else?


A large established developer would typically use option 1. But I guess a small developer might use option 2.

Your next steps probably depend very heavily on which option / which situation you are in.

Newbiefirsttimesilobuyer2023

Hi, I exchanged contracts in February, I then received 10 days notice to complete in May. 

Yes the developer failed to complete based on the issues being raised on the completion date. 

eddddy

In that case, failing to complete would normally be a breach of contract - your solicitor should be advising you about your options, and about claiming damages, etc.

Out of interest - how did you find the solicitor (and mortgage adviser)? Were they recommended by the developer?

If so, it's possible that the solicitor is more worried about upsetting the developer and losing future business from then, rather than ensuring that you are treated fairly.


(Plus the developer sounds extremely incompetent - if they serve notice to complete, and are then unable to complete.)

Newbiefirsttimesilobuyer2023

I have discussed a breach of contract and compensation with my solicitors and they advised that the contract can’t be breached by the developer as they are the ones who have served notice to me to complete. Apparently I’m the only one of the two parties who could be held accountable for breach it if the failed completion was down to me. As it’s a new build the contract is different to a traditional sale whereby either party would be held liable for a breach, therefore it’s no skin off their nose, which I think is really unfair as I have incurred additional costs from not moving which they will not cover. 

The solicitors were one of a few firms recommended to me by the developer, I did my own research and they had good reviews on a number of different review sites so I chose them from a pool I had researched independently. Neither company has made reference to me of their ‘working relationship’ so I have no idea if they are looking out for one another. What I will say is that I’ve been impressed with the scrutiny that my solicitor has put them under so I feel as though they are representing me and trying to act in my interest. 

eddddy

Newbiefirsttimesilobuyer2023 said:

I have discussed a breach of contract and compensation with my solicitors and they advised that the contract can’t be breached by the developer as they are the ones who have served notice to me to complete. Apparently I’m the only one of the two parties who could be held accountable for breach it if the failed completion was down to me. As it’s a new build the contract is different to a traditional sale whereby either party would be held liable for a breach, therefore it’s no skin off their nose, which I think is really unfair as I have incurred additional costs from not moving which they will not cover. 

That's intriguing. So I wonder how that would have worked if you weren't an FTB, and had a chain underneath you who planned to complete at the same time as you?

You'd potentially be in breach of contract with your buyer - unless your solicitor adjusted your selling contract in a similar way.

Newbiefirsttimesilobuyer2023 said:

The solicitors were one of a few firms recommended to me by the developer...

Neither company has made reference to me of their ‘working relationship’ so I have no idea if they are looking out for one another.

It probably wouldn't be a formal 'working relationship' - and neither party would admit to anything. It's more like this...

• The solicitors might get 2 or 5 or 10 or more 'conveyancing jobs' per year because they are on the developer's recommended list

• You have given the solicitor one 'conveyancing job' - and you might not give them another job for 5 years, or ever.

If, for example, the solicitor advises you to sue the developer - the developer might regard the solicitors as 'trouble makers' and stop recommending them. So the solicitor loses 2 or 5 or 10 or whatever conveyancing jobs per year. 

Newbiefirsttimesilobuyer2023

Very true!