Solicitor wants updated offer from broker who I have paid already

DaffyDuck316

If I said the gifter was the landlord who is selling the property, perhaps that is where the issue lies as opposed to receiving a gift from a parent for example.

Herzlos

DaffyDuck316 said:

If I said the gifter was the landlord who is selling the property, perhaps that is where the issue lies as opposed to receiving a gift from a parent for example.

I think the problem is because the gifter and the seller are the same.

The mortgage was done with a price of £265k, with an £8k discount. The solicitor seems to think the sale price has to match the funds transferred.  The broker thinks that it's fine with the transferred value below the sale price.

You'll need to get them to sort it out between themselves, ideally with the soliticor confirming with Nationwide that the different values are allowed. It doesn't seem to be that unusual.

Or the risky option is to see if the landlord can take the full £265k and then send you £8k back. The risk being that if they don't, you'd have to drag them through court to provide it. 

housebuyer143

DaffyDuck316 said:

If I said the gifter was the landlord who is selling the property, perhaps that is where the issue lies as opposed to receiving a gift from a parent for example.

I think the issue is literally, the solicitor is doing it as a lower PP and the broker has put it through as the actual price on application. Neither is incorrect but they need to do it the same way, one can't do option 1 and the other option 2. 
Nationwide appear to accept both but it's a gifted deposit with the broker and a bargain price with the solicitor. 

It appears the broker probably should have put it though as genuine bargain price and he hasn't. I can't really grasp why the solicitor can't alter it to a gifted deposit at this stage though and just accept £8k less from you at completion.

DaffyDuck316

Herzlos said:

You'll need to get them to sort it out between themselves, ideally with the soliticor confirming with Nationwide that the different values are allowed. It doesn't seem to be that unusual.

I have been patient and tried to leave them to sort it out, but I feel like this issue has going on for over two months with neither of them wanting to change their stance

Actually the broker did say we can go with a Genuine Bargain Price if I want but it will mean re-applying all over again. She also suggested I maybe get a new solicitor.

housebuyer143 said:

I think the issue is literally, the solicitor is doing it as a lower PP and the broker has put it through as the actual price on application. Neither is incorrect but they need to do it the same way, one can't do option 1 and the other option 2. 
Nationwide appear to accept both but it's a gifted deposit with the broker and a bargain price with the solicitor. 

It appears the broker probably should have put it though as genuine bargain price and he hasn't. I can't really grasp why the solicitor can't alter it to a gifted deposit at this stage though and just accept £8k less from you at completion.

As I mentioned before I could re-apply with a Genuine Bargain Price but does that mean I need more deposit money and how long is that going to take to process?

And I feel the same way as you in that I can't grasp why the solicitor can't alter it to a Gifted deposit at this stage.

Well my solicitor has said she is going to contact Nationwide so I'll hold my breath and hope the situation improves when I hear back.

housebuyer143

DaffyDuck316 said:

Herzlos said:

You'll need to get them to sort it out between themselves, ideally with the soliticor confirming with Nationwide that the different values are allowed. It doesn't seem to be that unusual.

I have been patient and tried to leave them to sort it out, but I feel like this issue has going on for over two months with neither of them wanting to change their stance

Actually the broker did say we can go with a Genuine Bargain Price if I want but it will mean re-applying all over again. She also suggested I maybe get a new solicitor.

housebuyer143 said:

I think the issue is literally, the solicitor is doing it as a lower PP and the broker has put it through as the actual price on application. Neither is incorrect but they need to do it the same way, one can't do option 1 and the other option 2. 
Nationwide appear to accept both but it's a gifted deposit with the broker and a bargain price with the solicitor. 

It appears the broker probably should have put it though as genuine bargain price and he hasn't. I can't really grasp why the solicitor can't alter it to a gifted deposit at this stage though and just accept £8k less from you at completion.

As I mentioned before I could re-apply with a Genuine Bargain Price but does that mean I need more deposit money and how long is that going to take to process?

And I feel the same way as you in that I can't grasp why the solicitor can't alter it to a Gifted deposit at this stage.

Well my solicitor has said she is going to contact Nationwide so I'll hold my breath and hope the situation improves when I hear back.

Fingers crossed. If you reapplied, then you shouldn't need more deposit the PP would just be lower. I'm not sure how long it would take but I'm sure your broker could find out if needed.

You could escalate it to the solicitors manger if they come back without a solution as sometimes that's the only way to bypass them if what they are doing or saying doesn't make many sense. 

DaffyDuck316

I do appreciate you have left some valuable feedback! I am glad to hear I shouldn't need more deposit if I were to go in that direction. I don't mind if things take longer as long as things are moving and not at a standstill.

I shall weigh up the two options of contract change/escalation and wait to hear from the solicitor who will hopefully tell me good news anyways.

DaffyDuck316

Well I heard from my solicitor from talking to Nationwide and she has not changed her stance, so I have asked my broker to change the contract.

What dismays me is my solicitor has charged me £250 + Vat for the extra work. The joys of home-buying!

DaffyDuck316

Hi everyone, so here is my situation.

My broker has told me that I can buy a property with a Gifted Deposit from the landlord.

The House price is £265000

The Gifted Deposit is for £8000 which is combined with my own money to make a total 5% Deposit

This is where the problem arises:

The Gifted Deposit is given to me by removing £8000 off of the full asking price.

I was surprised and delighted when my broker said I can do this, and received a completed Gifted Deposit form from the seller.

My solicitor however has just told me (after I have done local searches and signed contracts) that this is not acceptable. She has to put down that I am paying £257,000 on the contract which is not a Gifted Deposit, but an Under Value Mortgage/Genuine Bargain Price. My broker is adamant that this can be done as a Gifted Deposit.

Does anyone have any thoughts about this? I honestly don't know what to believe any more.

DaffyDuck316

I know that the post above is a bit repetitive, but I wanted to make sure all the information was out there.

My solicitor has said no solicitor could process this as a Gifted Deposit, and my broker has just told me that a Genuine Bargain Price would mean I would need to pay for the deposit all by myself.

Which means I'm out of luck and can't do either option. I am considering a new solicitor, but I'm so downbeat to have got so far along in the process to find I could never get the house in the first place. 

housebuyer143

DaffyDuck316 said:

I know that the post above is a bit repetitive, but I wanted to make sure all the information was out there.

My solicitor has said no solicitor could process this as a Gifted Deposit, and my broker has just told me that a Genuine Bargain Price would mean I would need to pay for the deposit all by myself.

Which means I'm out of luck and can't do either option. I am considering a new solicitor, but I'm so downbeat to have got so far along in the process to find I could never get the house in the first place. 

I think you need a new broker, because a genuine bargain price as I understand it is where the discount is your deposit. Families do this normally, where maybe the parents are selling to their kids. They don't give the kids £40k, they discount the PP and that forms the deposit. 

Why are you so convinced your solicitor is wrong over the broker?

Your choices are to escalate this to someone higher in the solicitors and see if they will do it as a gifted deposit, or maybe speak to some other brokers and see what they suggest as a first point of call. It will be cheaper probably to get a new broker than a new solicitor.

This is straight from Nationwide lending criteria. It literally says you don't need a deposit. Your broker can see this as well btw. Go back to him and ask him why what he is saying is in complete contradiction to what the lending criteria says and see what he says?