Repayment of a key worker loan

MamaEmeritus

Hi all, I am hoping someone here can help as I am at the end of my tether!

Some years ago, my ex and I took out a key worker loan as a deposit for a home. We have since split up and are selling the property. The terms of the original agreement were that they would be repaid the percentage that their original loan covered, not a fixed sum.

I agreed a purchase price and then as per the terms of the original contract, I instructed a surveyor to do an independent valuation for the administrators files. The surveyor valued the property at around the same price as the purchase price and we then asked for a redemption statement.

Since then, the administration company have rejected the fully qualified surveyors valuation and even suggested that because I work in the property industry, he and I have a prior existing relationship. WE DO NOT! I made sure to use a surveyor I didn’t know to avoid this kind of accusation.

They are demanding (presumably at my expense) another surveyor carry out another survey as they think I have sold the house for less than its true value. This obviously makes no sense! Why would I intentionally lose money for myself?! Furthermore, I have already paid for an independent survey…..they’re just not happy with his report. I would point out that they are basing all of this on the photographs from the Rightmove advert and they believe the house is in disrepair. It isn’t, it is a bit dated but not in disrepair. They have not visited the property nor have they asked for any other photographs.

I have offered a compromise and that I will agree to a valuation for approximately £15k more than the actual sale price just to speed this process up and give them more money than the percentage of the sale price, as my buyer is very keen to exchange and complete in the next week (this has been going on for 4 months!) and I am awaiting their response. Over the years, the house has doubled in value from its initial purchase and the repayment of the key worker loan is now more than twice the borrowed sum.

My solicitor is flabbergasted by this company as he has never known a managing agent to be so frustrating to deal with. The accusations of professional misconduct enraged all parties and I am planning on an official complaint once this is resolved. I no longer live in the house so the longer this goes on, the more I am out of pocket.

Can anyone offer any guidance here? Is what they are doing reasonable? Any advice at all would be gratefully accepted.

gwynlas

Were there any conditions attached to the loan regarding how a valuation would be agreed at time of sale?

If there wasn't I do not see how they can try to enforce the imposition of any now. It would be the same as anyone taking out a secured loan being told that in addition to repayment they now wanted an additional x percent at point of sale.

if at all possible you should proceed with the sale at agreed price and agreed percentage,.

You might have been hasty agreeinng extra £15k higher valuation. I would ask them to obtain independent surveyors valuation at their expense to be completed asap or take you to court. They are defaming professional surveyor you engaged as well as yourself.

MamaEmeritus

To the best of my knowledge, the only condition in the original agreement was that I obtain an independent RICS survey, which is exactly what I did upon agreeing a sale price.

I absolutely agree that I probably was hasty in offering £15k over the valuation, but I am just desperate to get this sale concluded. The longer it goes on, the greater the risk that my buyer will either pull out or have their mortgage offer expire, combine that with the expense of paying for the house while it’s empty, it seemed to be a logical choice. The extra sum on the redemption isn’t an enormous sum and to get the stress over with, I am alright paying it.

My buyer is a first time buyer with a young family and the thought that they have spent money on a sale that may not complete in time for them is very upsetting and I am doing all I can to push this through for them.