Urgent help required please re time to get mortgage arranged

Hi

This is a fairly urgent question! I hope someone can advise me. Just put in an offer on a property in Scotland today, it was verbally accepted. Legal offer is due to go in tomorrow. However, the vendors want to set a completion date for 12th August (when they take over property they are buying) and want this date put in the 'offer'. This is a second home for us, so we have no property to sell. Mortage has been provisionally approved by Northern Rock few weeks ago.

The question is: how long does it take to get mortage arranged etc. If offer goes in, with a date of 12th August, will mortgage be sorted by then? I have just read up on internet on Scottish property law and it scared me! States that if completion date arranged in the missives are not met, the buyer has to foot all fees re the delay. This would entail interest costs on the full amount due that has not been paid yet, if you see what I mean.

We really want this house, they have agreed our offer over several others and we are scared we will lose this property if we don't agree to hand over on the 12th August. I am scared, what if the mortgage isn't sorted by then? What if Northern Rock aren't at stage to hand over money? How long does it take to arrange it all now if we proceed?

Any help anyone can give please, we have to make formal offer via solicitor tomorrow to confirm this purchase and don't want to by pass the completion date they are demanding as it appears we will pay very heavily!

Thanks in anticipation,

Ember
~What you send out comes back to thee thricefold!~
~
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Replies

  • Could someone please answer this as it appears to be VERY urgent.
    Margaret

    Ember999 wrote:
    Hi

    This is a fairly urgent question! I hope someone can advise me. Just put in an offer on a property in Scotland today, it was verbally accepted. Legal offer is due to go in tomorrow. However, the vendors want to set a completion date for 12th August (when they take over property they are buying) and want this date put in the 'offer'. This is a second home for us, so we have no property to sell. Mortage has been provisionally approved by Northern Rock few weeks ago.

    The question is: how long does it take to get mortage arranged etc. If offer goes in, with a date of 12th August, will mortgage be sorted by then? I have just read up on internet on Scottish property law and it scared me! States that if completion date arranged in the missives are not met, the buyer has to foot all fees re the delay. This would entail interest costs on the full amount due that has not been paid yet, if you see what I mean.

    We really want this house, they have agreed our offer over several others and we are scared we will lose this property if we don't agree to hand over on the 12th August. I am scared, what if the mortgage isn't sorted by then? What if Northern Rock aren't at stage to hand over money? How long does it take to arrange it all now if we proceed?

    Any help anyone can give please, we have to make formal offer via solicitor tomorrow to confirm this purchase and don't want to by pass the completion date they are demanding as it appears we will pay very heavily!

    Thanks in anticipation,

    Ember
  • Ember999Ember999 Forumite
    1K Posts
    Thanks Margaret :D

    Can anyone help please? I have got to phone my solicitor this morning :eek:

    help???
    ~What you send out comes back to thee thricefold!~
    ~
  • Edinburghlass_2Edinburghlass_2 Forumite
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    Do you have an agreement in principle with Northern Rock for a mortgage?
    If so there should be no problem settling on 12 August.
  • Ember999Ember999 Forumite
    1K Posts
    Do you have an agreement in principle with Northern Rock for a mortgage?
    If so there should be no problem settling on 12 August.


    Thank Goodness...sat here sweating waiting for help!

    Yes, Edinburgh Lass, we have a mortgage in 'principal' with Northern Rock agreed about 2 weeks ago when we decided we wanted to buy another home in Scotland. I am still learning about Scottish property law. Thankfully, as the vendors have already bought another property, set completion date for 12th August, we got this beautiful 3 bed house with lots of money off! It's a brilliant bargain but we have to complete on the 12th. My solicitor is on stand by to proceed...just needed to know mortgage will be in place to exchange funds by that date or we face thousands in costs apparantly.

    Thanks for your help, much appreciated!

    :j :j
    ~What you send out comes back to thee thricefold!~
    ~
  • Edinburghlass_2Edinburghlass_2 Forumite
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    Also might be an idea to use a Scottish lawyer who will then know how the system works here.
  • Edinburghlass_2Edinburghlass_2 Forumite
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    10,000 Posts Combo Breaker
    Ember999 wrote:
    Thank Goodness...sat here sweating waiting for help!

    Yes, Edinburgh Lass, we have a mortgage in 'principal' with Northern Rock agreed about 2 weeks ago when we decided we wanted to buy another home in Scotland. I am still learning about Scottish property law. Thankfully, as the vendors have already bought another property, set completion date for 12th August, we got this beautiful 3 bed house with lots of money off! It's a brilliant bargain but we have to complete on the 12th. My solicitor is on stand by to proceed...just needed to know mortgage will be in place to exchange funds by that date or we face thousands in costs apparantly.

    Thanks for your help, much appreciated!

    :j :j

    No, no, no, should anything go wrong it won't cost you thousands, a bit of interest perhaps but don't let it worry you.

    As I just said it might be an idea to use a Scottish solicitor for this who will know the system and know to push the Northern Rock for completition on the entry date. This is the way the system works here, you set an entry date and there is no going back or guzumping but all the mortgage lenders and solicitors know this and so work to a schedule.
  • Ember999Ember999 Forumite
    1K Posts
    Also might be an idea to use a Scottish lawyer who will then know how the system works here.

    The good thing about the system in Scotland is once offer is legally accepted, we cannot be gazumped like happens all the time in England. I am just about to phone a Scottish Conveyancer to put in the formal offer. I am so pleased we can complete for that date, if we can't, an offer by one of the other 6 interested parties will be accepted. Very stressful, husband went to work this morning in a right state. This house is lovely, we want it so much! Been going on holiday to various parts of Scotland for years, and we want to settle there permanently one day, buying a house there is the first step in realising our dreams :j

    Thanks for helping this morning, I haven't slept a wink worrying about this. Waiting for someone to respond was stressful, thought no one was going, so glad you did.
    ~What you send out comes back to thee thricefold!~
    ~
  • Edinburghlass_2Edinburghlass_2 Forumite
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    We seem to be cross posting! What is a Scottish conveyancer? Do you mean a lawyer? Watch you aren't paying twice for this.

    icon7.gif
  • Ember999Ember999 Forumite
    1K Posts
    We seem to be cross posting! What is a Scottish conveyancer? Do you mean a lawyer? Watch you aren't paying twice for this.

    icon7.gif

    A conveyancer is a Scottish Lawyer who specialises in property Law. So a solicitor who deals with nothing but Scottish Law re: property. That will do me won't it? I live in England at the moment, the solicitor is from Glasgow.
    ~What you send out comes back to thee thricefold!~
    ~
  • Edinburghlass_2Edinburghlass_2 Forumite
    32.7K Posts
    10,000 Posts Combo Breaker
    Ember999 wrote:
    A conveyancer is a Scottish Lawyer who specialises in property Law. So a solicitor who deals with nothing but Scottish Law re: property. That will do me won't it? I live in England at the moment, the solicitor is from Glasgow.

    Just you are worrying me about talking about a conveyancer and a solicitor?

    I wondered if you were talking about using a solicitor in England and a conveyancer in Scotland. The solicitor in Glasgow will be able to handle all aspects of buying for you and will chase the Northern Rock but no harm in you pushing them along too ;)
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