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Cash buyer is now getting a mortgage

(7 Posts)
Lulabel27 Fri 28-Sep-12 15:13:44

Does anyone know if we have any leg to stand on in this situation? We got an asking price offer on our house back in early July from a wealthy cash buyer. Great, we got on the case and found a beautiful house about 3 weeks after, offer accepted, mortgage approved on our side and we've been ready to exchange for about 3 weeks now.

But in the time it took for us to find a house (our buyer knew we had to find somewhere) our buyer decided to get a mortgage and the approval process is still ongoing. It's looking likely that her banks solicitor will not approve it and she will pull out! (the reason for no approval is that it's a complex leasehold house owned by the crown and banks standard solicitors just don't have experience with
It) We've spent a fortune getting surveys on new house, legal fees for purchase/sale (not a no exchange no fee agreement) and I'm due to give birth in about 10 weeks time.

We feel so led on in the whole process and so cross that our e.a told us they were cash buyers and now theyre not. Is there anything we can do about this? Or just resign ourselves to the fact we're not moving and lost several thousand pounds?

MoreBeta Fri 28-Sep-12 15:17:32

Did your EA not ask for documentary proof that he had the cash?

Normally, before recommending accepting a cash buyer's offer EAs will qualify the buyer by asking them to prove they have the cash in the bank.

Lulabel27 Fri 28-Sep-12 15:40:38

I don't know if they did or not. We were told they were very wealthy and already owned 6 rental properties in the area already. We never thought to ask if e.a had done due diligence.

Even if they do have cash we can't force them to use it though? :-(

fresh Fri 28-Sep-12 16:13:06

Really sorry this has happened, but not much you can do unfortunately. IME if someone offers cash they're expected to prove they have it, either by showing the EA evidence or by having their solicitor confirm it.

About the only thing you can do is put the house back on the market; if they really want it you might find the cash miraculously appears, at which point you put a deadline on exchange so they don't keep you hanging on.

weedonleg Fri 28-Sep-12 16:19:21

I really feel for you. This nearly happened further down our chain. The 'cash' buyer (who had been checked out as such by our buyer's estate agent) suddenly decided he would also like to buy a golf course in scotland so would be funding the house purchase through a mortgage. He couldn't get one (too old), so after several weeks of delays he went back to plan A and paid for the house in cash.

Is there any chance your buyer might do the same when she realises she won't be able to get a mortgage? You need to get your EA to ask the question. I doubt there is any legal recourse so I would just lay on the guilt about how you've been mislead and will be out of pocket due to her lying about her position.

tricot39 Fri 28-Sep-12 16:38:36

Could you try asking them to complete the sale with cash and sort their mortgage at leisure??

nocake Fri 28-Sep-12 21:20:50

As others have said there isn't much legal recourse but I would be threatening to put the property back on the market.

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