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Original poster

Seller refusing same day exchange and completion but no chain - why could this be?!

129 replies

Sunraying · 13/12/2015 19:34

We are trying to buy a house with no chain on either side. The seller doesn't live in the house and lives somewhere new! We have to exchange and complete on the same day because there's a tiny chance our bank will do another credit check before we actually ask for the mortgage money, and I know our credit score might be a bit different.

DH applied for a loan in between getting the mortgage agreed and now. We haven't taken out a loan but did apply for one. I can see the loan company searches on his experian credit file, so worried now.

We want to exchange and complete on the same day just in case the bank does another credit check and decides not to give us the money, then we don't lose our 10% deposit because the conveyancer already has the money from the bank so we know it's there before actually signing anything.

The seller is dead set against this. I don't know why though, it's not going to take any longer this way around. Why could it be he's digging his heels in about this?

OP posts:
Flashbangandgone · 13/12/2015 20:24

I've had a look on this. It seems like it has happened very rarely... your solicitor should be able to assist with this...

The issue is theoretically a problem do everyone who takes out a mortgage as i believe merely checking your credit history lowers it!

MimiSunshine · 13/12/2015 20:24

Did the loan application get accepted or declined? If the former then I wouldn't worry about the mortgage too much and just exchange.

I applied for a higher limit on my credit card after I received my agreement in principle in anticipation of furniture buying (it was accepted). It was only afterwards that I read advice not to apply for other credit and really worried about it but it was fine and I had fairly a bad credit rating in the first place (previous bad money management was still haunting me at the time, much improved now).

I can see why your seller is nervous of you, I wouldn't have agreed to it. If there's a chance you could lose the funds and the house, surely it's better to find out tomorrow and not on the day everyone is expecting to swap keys and even closer to Christmas? I know what you're saying about the deposit but surely you'd have to transfer that over first thing on exchange date anyway

LIZS · 13/12/2015 20:24

It is theoretically possible they would recheck but unless you have damaged your rating or the loan was refused unlikely to affect the outcome, whatever the interval between exchange and completion.

Original poster
Sunraying · 13/12/2015 20:27

I can see why he might think our finances are wobbly from us insisting on this but the reality is, he's got nothing to lose really. If we're going to pull a fast one in any way, shape or form he'll know about it in a few days and even if he knew 5 days earlier, what's he going to do? Go back on the market is all he can do.

I mean the risk to him is literally losing 1 week of re marketing time. Or am I missing something? The risk to us is losing 10%.

OP posts:
Blu · 13/12/2015 20:28

Your solicitor will not allow you to exchange if he thinks you are at risk of losing your deposit! Surely the mortgage offer, once formslised, constitutes a contract? I have never, ever heard of a mortgage co refusing after exchange!

Listen to your solicitor. Honestly, if I was the vendor and we were all ready to exchange, with completion in 5 days, and you started saying 'no hold on 5 days and we'll do it all at the same time' I would think you were dicking about.

Original poster
Sunraying · 13/12/2015 20:29

The loan was approved.

We wouldn't lose the 10% anyway, because we'll exchange once the mortgage company has literally given the money to our solicitor and it's sitting in their account. Once they've let us drawdown the money they can't go back on it (the mortgage company).

OP posts:
LittleLionHeart · 13/12/2015 20:30

Are you sure it's not just his solicitor refusing? You have to be far more organised to do a simultaneous exchange and completion and a lot of solicitors resist it...

LIZS · 13/12/2015 20:30

If you have the mortgage offer why not exchange tomorrow. Confused

Original poster
Sunraying · 13/12/2015 20:32

Our solicitor actually says that yes the mortgage offer could be removed after exchange but only if there was a problem with our credit check. So our mortgage broker and solicitor both agree there's a risk.

We've got a huge mortgage and while credit isn't bad there are only a couple of banks who will lend us this amount so if we are refused we've hardly got loads of other options.

We also know the seller is really volatile (the estate agent's and his solicitor's description of him), he really doesn't care about any of our circumstances and wants to 'close the deal'. So I'm pretty sure if we ran into problems he'd walk off in to the sunset with our 10% without a second thought.

OP posts:
Original poster
Sunraying · 13/12/2015 20:33

Have a read of the whole thread Liz, I explain the reasons why.

OP posts:
LibrariesgaveusP0wer · 13/12/2015 20:33

What does he have to lose - the emotional energy of being dicked about on the day of supposed completion. That's not material or concrete, but it looms fairly large for a vendor.

Original poster
Sunraying · 13/12/2015 20:34

Could be his solicitor resisting, could be him advising his client not to?

OP posts:
LibrariesgaveusP0wer · 13/12/2015 20:34

On a related note, what possessed your DH to apply for a loan?Confused

Moving15 · 13/12/2015 20:36

If my buyers suddenly said to me they wanted to delay exchange by 5 days, even though they were telling me everything was OK and ready to go and the completion date wouldn't change, I would definitely say no way! Why would they want to avoid exchanging on the date already agreed? It could only be because they were trying to buy themselves time due to some mortgage hitch or other problem in the pipeline. And your explanation of why you want to delay exchange proves the point. You are concerned that you will lose the mortgage offer.
I think you need to take a deep breath and check with your solicitor what they advise you to do considering your concerns. They might tell you they don't have time to do a same day exchange and completion before Christmas anyway! Mine certainly wouldn't!

Original poster
Sunraying · 13/12/2015 20:36

As opposed to being picked about 5 days earlier on the day of exchange Libraries? I see your point but if it's the difference between making the sale and walking away most people would wait the 5 days and see what happens on the day?

We will walk away if he won't agree, but it hasn't come to that point yet where either of us has issued an ultimatum over this. We will though if we have to because we won't risk losing that money.

OP posts:
Flashbangandgone · 13/12/2015 20:37

We wouldn't lose the 10% anyway, because we'll exchange once the mortgage company has literally given the money to our solicitor and it's sitting in their account.

If that's the case I'm not sure why you're still worried?

Original poster
Sunraying · 13/12/2015 20:38

But we're not suddenly saying we're delaying anything. We've been saying we want simultaneous for ages and he's been saying no for ages. But we haven't come to loggerheads about it because we were waiting to sort out a couple of other issues on the house (things he had to sort out). Now that's done, and we're ready to go, we're saying we'll still complete on the soonest possible date but we won't exchange unless it's on the same day.

OP posts:
Flashbangandgone · 13/12/2015 20:41

The loan was approved.

So just to check, you had an additional loan approved since you started the mortgage application? I'm presuming you absolutely need that loan?

Original poster
Sunraying · 13/12/2015 20:41

Flash, sorry that was in response to someone upthread. They were saying surely we'd have to sign the contract before paying the money anyway. And I was pointing out we want to exchange once the bank has actually paid the money into our solicitor's account and as the solicitor can't hold that money for any length of time, it basically has to be exchange and completion on the same day. Hope that makes sense.

OP posts:
LibrariesgaveusP0wer · 13/12/2015 20:42

Yes sun. It is different. Exchange gets delayed and pissed about all the time. People are emotionally ready for it.

LIZS · 13/12/2015 20:42

Exactly flash. Op , your logic is flawed and your DH a twit for applying for a loan in the interim. Sounds like you are on the verge of a serious financial commitment and having done so he may raise doubts as to what the loan was needed for and why it did not go through. When did you make the offer btw?

Original poster
Sunraying · 13/12/2015 20:43

I'm thinking we could exchange and complete the next day with the scenario we want to run.

Would you be suspicious of a buyer doing that anyone?

OP posts:
Original poster
Sunraying · 13/12/2015 20:44

We needed the loan for work on the place we're buying but the seller has agreed to give money for that so now we don't need it.

OP posts:
Original poster
Sunraying · 13/12/2015 20:45

Lizs how is my logic flawed? I've explained it all, it's based on advice from broker and solicitor both really experienced.

OP posts:
HicDraconis · 13/12/2015 20:46

We agreed to exchange and complete on the same day when selling DH's house (he had moved into mine, his was sitting empty bar a few pieces of furniture for viewing/marketing).

One of the pieces of furniture was an almost brand new sofa which the buyers wanted to keep - and as we didn't need it, we said we'd leave it behind but not ask for any money for it.

The day before exchange and completion they suddenly said they needed the sofa gone and the house empty. We had nowhere to put it, nowhere to store it (my house was tiny) and so in panic we left it at a local recycle centre.

The day of exchange and completion they pulled out. I was furious - at the loss of my furniture, at the expense and hassle of putting the house back on the market, at the general shiteness of their behaviour.

I always wonder if they went to the recycle centre and took the sofa and it was just a way of getting it for free. Grrrrr.

I would never exchange and complete again on the same day again. Never. Maybe your seller feels the same way.