Solicitor requested release of funds without consent - now bank offer is valid for 28 days only

rocky1496

Hi all, hoping to get some advice on a situation that’s become quite stressful.

My partner and I are in the process of buying our first home, which is a new build property.
We have instructed one of the solicitor panelist, as per the developer advice, but we are having some major issues.

We have reserved on the 9th of March. Our reservation letter confirmed an exchange date of 17 April and completion on 30 April.

On 27 March, the developer asked us to exchange and complete by 31 March. We tried to negotiate but ultimately refused. What we didn’t know at the time was that our solicitor had already requested the release of our mortgage funds on 27 March, without informing us or having our consent to do so.

On 30 March, the solicitor contacted us asking us to confirm we were willing to exchange and complete the following day. We again refused and sent a complaint email about the lack of communication. They called us immediately and told us the bank had already released the funds, but assured us they would be returned straight away.
Following this, our mortgage lender informed us that our offer, originally valid until September, is now only valid for 28 days from when the funds are returned, putting the new expiry around 27 April. Our completion date is 30 April, which now falls outside that window.

To make things worse, we asked our solicitor today (7 April) for all search results, and were told that the local authority searches will not be back before 17 April, our exchange date. We are therefore being asked to exchange without having seen the full search results. But more importantly, they have released funds without the searches results.

Has anyone experienced anything similar?

silvercar

What does your solicitor say about exchanging without the search results?

It may be that the simplest solution is to complete on 27 April, with the solicitor bearing the costs of completing early. Ask the solicitor their proposal for dealing with these problems. If you aren't satisfied, you would make a complaint, following the solicitor's complaint procedures. If you aren't happy with that result you go to the ombudsman.

At the end of the day, solicitors are professionals and they have professional indemnity insurance if they make a mistake that costs a lot to rectify.

Myci85

I expect a lot of people on here would advise against using the solicitor recommended by the new build company, as your solicitor should be working in your best interests, and that blurs the line a bit. But there's little you can now do about that.

I don't have any advice sorry, other than I definitely wouldn't be pushed to exchange before all searches etc are completed and everything looks fine. I knew if funds were requested too soon your solicitor just sends them back, but I didn't realise this then shortens the length of your mortgage offer. If that's the case, I'd be expecting the solicitor to make good any difference in mortgage rates etc if you have to reapply.

user1977

What do you think might be of any interest to you in the local authority searches? They're largely pointless for newbuild properties as the planning process for the developers will have "flushed out" anything likely to be adverse.

Jemma01

Really sorry, this sounds stressful. Nothing like trusting your solicitor when dealing with something of this cost and pressure.

What issues would you face if you complete by the 27th and not 30th? I appreciate you might have arranged for movers, can that be rearranged?

Have you tried speaking to the lender about the extra few days? Have they absolutely declined? What was their reasoning?

subjecttocontract

What a mess. Developers and one of their pet solicitors causing a heap of trouble. You have my sympathy, I don't think I'd agree to exchange without the opportunity to understand the result of the searches......it goes against everything I've ever understood with property transactions. Good luck I hope you get it sorted.

rocky1496

https://forums.moneysavingexpert.com/discussion/comment/81953477#Comment_81953477

The solicitor said they can provide us with a local search from one of the other houses built next to the one we are buying as they expect the searches outcome to be almost identical.

Jemma01

https://forums.moneysavingexpert.com/discussion/comment/81953839#Comment_81953839

Free of charge? or are you paying for a work they've already done before?

I'd ask them to not charge me (if the results are no more than 6 months old), or provide evidence that they've already paid for new searches, since the results are likely to be similar if within 6 months.

rocky1496

https://forums.moneysavingexpert.com/discussion/comment/81953851#Comment_81953851

Thanks, this is a good point, I will ask as they didn’t provide this information.

Also, to answer your previous question, the developer is fine with us completing on the 27th. The house has been completed since before our reservation, so they would like to complete as soon as possible.

On our side, we would need to adjust the logistics for the move, but it’s feasible. Our concern is mainly with not knowing the process really well and the lack of advice we received so far by our solicitor. This is our first home, we’ve never gone through this before and we are scared none of the parties is explaining the risks we may face later.

subjecttocontract

Im surprised the lender is prepared to forward the mortgage money before all the legal work that is normally required is actually done.....clearly it hasn't been done and won't be before exchange. Are lenders really this relaxed about forwarding funds or has the solicitor (I assume they are acting for the lender also) given an undertaking that it will be done and all will be ok BEFORE completion ? It's a very strange set up.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81953891#Comment_81953891

No obligation on you to move in on the day you complete.