property "not lendable"

lee111s · 12 September 2017 at 1:20PM

Using the builders solicitor was your first mistake...

drivebysighting · 12 September 2017 at 1:20PM

the process was laid out by the builder, the holding deposit, the exchange of the contract all happended the same day of the property launch at the launch event itself.

NelliePie · 12 September 2017 at 2:51PM

http://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/how-do-i-exchange-contracts/
https://www.moneyadviceservice.org.uk/en/articles/what-you-need-to-know-about-contract-exchange-and-completion
http://www.moneysavingexpert.com/mortgages/buying-a-home-timeline
http://www.fridaysmove.com/conveyancing-advice-dos-and-donts-exchange-contracts/848
http://www.premiersolicitors.co.uk/Residential,Conveyancing,FAQs,11278,10117,11263,0.html

Pretty much everywhere I've seen states you should have your mortgage offer in writing BEFORE you exchange contracts so I'm not sure how you've managed to exchange without the offer in writing. I recently purchased a house and once the offer was accepted the mortgage was applied for straight away along with valuation, searches and survery etc. Contracts were only exchanged once my solicitor (and I) were happy that all of the necessary paperwork was in place and understood.

I'm sorry I can't be much help with your situation now but I wanted to come by and wish you luck

Edit to add: Also aren't you supposed to have some form of life insurance and buildings insurance etc before exchanging. Even the MSE timeline page says it's usually 2-6 weeks between offer and exchange.

davidmcn · 12 September 2017 at 5:46PM

NelliePie wrote: »

Pretty much everywhere I've seen states you should have your mortgage offer in writing BEFORE you exchange contracts so I'm not sure how you've managed to exchange without the offer in writing.

It may be good advice to do so but you can take the risk if you want.

Also aren't you supposed to have some form of life insurance and buildings insurance etc before exchanging.

Why would you need life insurance?

Buildings insurance isn't necessary for newbuild properties until completion (if you're buying off-plan you might only be insuring a patch of mud!). The builders will have their own cover during construction.

lord_tyrannus · 13 September 2017 at 7:35PM

I'd say you need to be speaking to a different solicitor asap to see if the builders solicitor has acted negligently on your behalf by exchanging without a mortgage offer in place.

Who is the builder? I might of missed it in the thread but why exactly is it not lendable?

davidmcn · 13 September 2017 at 7:38PM

lord_tyrannus wrote: »

I might've missed it in the thread but why exactly is it not lendable?

It's in the OP:

The reason given for "not lendable" is that the the property is in a commercial area with a Pub and casino on the same street.

Rich2808 · 13 September 2017 at 8:06PM

Have your brokers tried Natwest - they are allegedly more flexible on this front?

http://www.intermediary.natwest.com/intermediary-solutions/lending-criteria.html

Property types - acceptable
Flats over or immediately alongside business premises.

kk20 · 14 September 2017 at 9:10AM

I would say you need to look at reporting the solicitor for all the losses you will accrue. I cannot see how it is standard practice to exchange contracts without an offer of mortgage.

It isn't unheard of for a mortgage offer to be reassessed AFTER an offer has been made (and THEN contracts exchanged - but before completion) a bane of self employed people near year end completions - banks may ask for the latest year finances and reassess etc.

As to what you can do now? You have already signed agreements with the solicitor so at this moment in time the house is agreed to be yours, you need to pay for it at completion (I assume there is a clause in the contract where you pay a pct if you pull out). You can either look at taking the solicitor to court and getting the agreement undone (I would guess there are "this is a risk" portions of the agreement to cover themselves) or you can go to a decent broker and get another mortgage.

davidmcn · 14 September 2017 at 9:50AM

kk20 wrote: »

I would say you need to look at reporting the solicitor for all the losses you will accrue.

Nowhere has the OP told us what advice they received before entering into the contract. If they were told in black and white that they'd be obliged to come up with the money on completion day then I can't say they'd have much of a case. The fact that solicitors tend to be very cautious these days doesn't mean that it's negligent to "allow" clients to exchange contracts - at the end of the day the decision is the client's, and many have no need to be concerned about having a mortgage offer or otherwise finding the cash when the day comes.

kk20 · 14 September 2017 at 10:11AM

well obviously, without all the information to hand then of course we cant say "We would do this". However, the timeline of events looks very unorthodox for a house sale. Even if a component is in place for a get out clause, asking a person for exchange of contracts on a property over 1 year away is very suspect. A regular mortgage vendor might not even look at an offer long term (im not saying that a vendor WONT offer); a regular solicitor would probably advise people against completing without money in place. I would also imagine a contract that is being drawn up for you as instructed on your behalf should be working for your interests. I would imagine such contracts would highlight the risks. I know my solicitor contracts have always highlighted the "normal" risks, never mind a risk of "you are exchanging contracts without having a definite means to pay".

Horses for courses. But the options are still valid; look at defeating the agreement, look at a new mortgage, pull out and pay the clause penalties, pay cash.

property "not lendable"

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