Solicitor wants updated offer from broker who I have paid already

DaffyDuck316

Well this is from my Broker:

---
Nationwide have come back to me and if we are going off the purchase price of £257K – they need you put down at least 5% deposit which will be £ 12,850?

Your solicitors just need to change the contract to the purchase price to £265K and we can continue with the old offer.

If your solicitors don’t want to do this then we can instruct different solicitors that know how concessionary purchase work.
---

If I speak to other brokers, when they go to apply Genuine Bargain Price, how could it end up being a different outcome? If there is a way for a different outcome then that would be amazing. It is worth trying, I never even thought of that.

You are right I shouldn't be convinced the solicitor is wrong. I think it is wishful thinking because the broker asked for payment when I received a mortgage offer so I have paid them already.

I am so grateful for your communication, because I feel so lost. Is this something I should be dealing with myself, or could I just leave it for my solicitor to sort out perhaps?

DaffyDuck316

I did write this back to my current broker:

---
I did read that a Genuine Bargain Price mortgage uses a discount (£8000 off the asking price) as a Deposit.

Is this definitely not the direction we should be going in?
---

housebuyer143

DaffyDuck316 said:

Well this is from my Broker:

---
Nationwide have come back to me and if we are going off the purchase price of £257K – they need you put down at least 5% deposit which will be £ 12,850?

Your solicitors just need to change the contract to the purchase price to £265K and we can continue with the old offer.

If your solicitors don’t want to do this then we can instruct different solicitors that know how concessionary purchase work.
---

If I speak to other brokers, when they go to apply Genuine Bargain Price, how could it end up being a different outcome? If there is a way for a different outcome then that would be amazing. It is worth trying, I never even thought of that.

You are right I shouldn't be convinced the solicitor is wrong. I think it is wishful thinking because the broker asked for payment when I received a mortgage offer so I have paid them already.

I am so grateful for your communication, because I feel so lost. Is this something I should be dealing with myself, or could I just leave it for my solicitor to sort out perhaps?

The difference between the valuation price (market value) and the PP is your deposit. So the property value is still £265k and you are paying £257, thus making that your deposit. That's how I understood genuine bargain price to work. 

I don't think your solicitor will work it out if you do nothing unfortunately, they will just keep waiting. 

See if you can find maybe a free broker or one with good reviews local and explain what's going on and just kind of see what they say. They might agree with your broker or they might instantly not, at least you would have some idea if what the broker is saying is right.  

Alternatively, send that email from your broker to the solicitor and ask for it to be escalated to a higher up, as your broker is insistent they should be able to do this and you want a second opinion.

Hopefully you can sort it out as I can imagine it's very frustrating!

DaffyDuck316

Honestly I am so glad to have someone to talk to about this, I love this house and I am certainly going to exhaust all avenues I can to try to get this resolved. Thank you so much for listening and giving me some clues on what to do next. 

Sarsibob1

housebuyer143 said:

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? 

Is the issue that the max ltv on reduced market price is 90%? So if it is being recorded as genuine bargain price you can borrow 90% of 265k so £26500 deposit needed of which 8k is coming from the discount. Have you got the other 18.5k? If doing it as a standard purchase with gifted deposit you can do it with a 5% deposit rather than 10. I am guessing that may be the issue 

Myci85

OP I would post this on the mortgages board as there are several brokers on there who may be able to help shed light on what the issues are. 

DaffyDuck316

Is the issue that the max ltv on reduced market price is 90%? So if it is being recorded as genuine bargain price you can borrow 90% of 265k so £26500 deposit needed of which 8k is coming from the discount. Have you got the other 18.5k? If doing it as a standard purchase with gifted deposit you can do it with a 5% deposit rather than 10. I am guessing that may be the issue 

I must admit that did flag up in my head when I first saw it earlier tonight. I just wish my broker would be forthcoming if that were the case, perhaps by telling me that it gives me grounds to ask for a refund or something.

But it doesn't seem to connect with the last thing she told me

---
Nationwide have come back to me and if we are going off the purchase price of £257K – they need you put down at least 5% deposit which will be £ 12,850?
---
And that was in response to me specifically asking for a Genuine Bargain Price mortgage

It's all very mysterious, especially as this situation has been going on for 2 months.

Hmm the more I think about it, the more I fear you may be right.

Hopefully I'll hear back from the broker soon when I questioned about why she said that when the discount should be the deposit.

I'll post a link to this thread on the Mortgages Board

Hoenir

DaffyDuck316 said:

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

A very convenient selling price. To anybody on the outside manufactured purely to make the sums work. 

DaffyDuck316

I don't understand what you mean. The house went on the market when my landlord passed away and this was the best/only course of action I could take with the money I have if I wanted to purchase. 

silvercar

DaffyDuck316 said:

I don't understand what you mean. The house went on the market when my landlord passed away and this was the best/only course of action I could take with the money I have if I wanted to purchase. 

So basically it is being sold by the benefactors or the estate. They are achieving the best price they can, which appears to be 265k. There is no connection between you and the sellers eg buying off family where a discount may be warranted, so the price you are paying is its value. (Arguably they may save on estate agent fees). So you can dress it up how you want, but it’s £265k. Call it £280k with a £15k gifted deposit, indeed call it £300k with a £35k gifted deposit if you want, the bottom line is you are paying £265k.