Any Advice\Help - failure to complete purchase - Scotland

chappers

The longer this goes on the more contorted your way out of this seems to be firstly involving your ex and then your sister in a BTL situation.
It seems that you will be strangled by the financial situation you are going to put yourself in, not to mention there may be clause in the mortgage which forbids letting to close family.
If you do not complete have you any idea how much it is going to cost you have you put down a deposit etc.
This is obviously causing you a lot of stress and the best solution could in the end just be to tell them you cannot complete they ask for their expenses due to the aborted sale, you get your ex- to give you the money to pay this and walk away from the whole sorry affair, without the stress of a high rate convoluted mortgage deal, just for the sake of owning your own home.
Come back fresh to the situation in ayears time when you can meet the employment criteria which is giving you all the problems.

nikkiandmidgets

This is scotland. Up here I get charged interest on money due plus 5% till they resell, all their expenses plus the difference in what they get and what I was supposed to pay. It could be a LOT of money. Having my sister buy it as a buy to let or myself and ex means I maybe have to contibute something towards rent - i.e. difference between rental income and mortgage, and when it sells in the future I get the profits from the house sale. Husband has offered to do joint purchase or buy to let so that I dont loose potentially a LOT of money. Thats what the solicitor and mortgage advisor are saying. If it did end up as a Buy to let it wouldnt be family, would be a tenant I didnt know. I would stay where I was but have a property my money was invested in. My financial advisor and solicito feel that if at all possible I should do my best to purchase this house so that I get something for my money, and also so I do not let seller down.

beecher

You've been told that you can't have a joint application with your husband so that's surely not an option.

Is the mortgage company willing to loan your sister enough to buy the property - I don't understand what you mean by lending 110% of the mortgage payment. Is this really an option or just something you're clinging on to? I think it might be time to face facts, though obviously that's going to be difficult.

Not much good to you now, but the fact that the Scottish system is so harsh when it comes to someone backing out of a deal is why everyone is supposed to get their finance in place before they put in an offfer.

What are the vendors saying at this point?

nikkiandmidgets

I dont know if I could or couldnt get a joint with husband - I just know he has been with present employer for more than 3 years and his income and mine combined come to over £100,000. We could put a larger deposit down as he would match what I paid in. We havent had mortgage arrears, a few missed payments, I have a default and he might have one too - not certain. My default is for £392. I was getting approved for mortgages before from YBS and BM but they changed their mind when they saw my contract. My husband has a 80-90% mortgage on a house thats worth around £205,000.

With regards BTL via sister. BM calculate lending amount based on rental income. Surveyors said £630/5 (Cant remember which) which equated to £120,000 and they lend up to 85% of value.

Re Seller, I am not sure what they are saying, just now my solicitor said it was better if she dealt with them but asked if I could tell them exactly whats happening, and if another option looked likely - which financial advisor thought it would with BTL - then they would probably give me another week or two.

All I was wondering was if anyone knew what criteria lenders have re options above, and if they could recommend anyone I could try with whos criteria I might fit?

chappers

Thats fair enough if you think you have a way out that you are happy with.
Remember to set any future profits against the shortfall in the rental, also the shortfall in the rental against any penalties you may be liable to if you pull out of the deal.
You are right for pulling out of the deal it will cost you a lot of money, but so could paying the shortfall on the rental income each month.
You are stuck in a tricky situation and I hope it works out for you, you need to weigh up one thing against the other and work out which is best for you and your peace of mind at least it appears that you do have some options open to you now.
Good luck

Trollfever

his income and mine combined come to over £100,000.

a few missed payments,

I have a default and he might have one too - not certain.

No comment.

silvercar

This is scotland. Up here I get charged interest on money due plus 5% till they resell, all their expenses plus the difference in what they get and what I was supposed to pay. It could be a LOT of money.

Why do you think this could be a lot of money, was there no interest in the property? Has the market fallen since you exchanged? Or are you being cautious?

nikkiandmidgets

The missed payments on his side are because he is out of the country over 300 days a year and has been for last 3 years - sometimes he goes away for a week or two and comes back months later - its the nature of his job. When we first split he was advised by someone to cancel the oint bank account and only port over to his account anything he was liable for. I was in hospital getting induced at time and knew nothing about this till I got home and got letters about things bouncing. He ws away after this for over 2 months. I was on maternity leave and had no income, lived in the middle of nowhere and had two kids under a year old. I survived for a few months from handouts from my sister as he only paid mortgage and anything set up on direct debit - not all utility bills were and nappies\baby milk\food etc certainly werent covered by DD! Thats why we have past issues on the credit file. As for salary. My husband works internationally and gives all his time to company thats why he has high income.

His default is a mobile phone bill he disputes as they say he ran up 2 x £1500 bills each month. He did not ask for that credit limit and wouldnt have wanted it and disputed that he could have incurred these costs. He is not into paperwork and as he is not home often, when he is he likes to spend the time with his kids and catch up on his house stuff. He says in past that he hasnt time to argue with mobile phone company and that as he hadnt planned on getting future credit and has plenty savings, he wasnt worried about the default.
Hope that explaing the things Troll hilighted.