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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Help to Buy / New Build Remortgage Hell

11 replies

PetrasPurse · 21/03/2022 17:46

I feel a bit like my wits end today. Last October we decided to remortgage our help to buy house as the term was ending in January. Due to the rates being all over the place, it worked out best to buy out the extra 20% of the house while they were so low. I thought it would be pretty straightforward, but it's been more stressful than buying our house in the first place - it's still not gone through and the associated costs keep escalating!

There was so much more to the process than we even realised - paying for a RICS surveyor to come out, transferring £200 to the Target's bank account for admin costs, printing and signing no end of documents, there were so many moving parts and we sat on NOTHING!

Despite our current mortgage estimating our house value at £515k, the new mortgage did their own valuation and took £100k off that which meant we needed to pay a couple of thousand off the equity to keep the rate we were offered, this was frustrating but we thought - it's just some money thats not being mortgaged so we proceeded.

Then there came an issue with the management company that look after the estate (we are not leasehold, this is a company that look after the greenspace for a cost of around £170 a year). Apparently they have a claim on our mortgage so we had to instruct some new solicitors and start the process again as we needed a Deed of Variation, and our instructed firm didn't do this sort of work.

Suddenly I am paying out £800 to instruct new solicitors to get involved in this, while it was a lot more than expected they have been really on the ball, updates two or three times a week, constant chasing.

The part where it's all got stuck is with the original builders solicitors. They gave us a quote of £900 to draw up this Deed of Variation document (which I am assured is just a template that they update the address I'm for all the builders properties), they then charged us £190 extra for reading and signing the document, and another £190 from the original builder to do the same. As the BoE Base rates have gone up, we couldn't really back down now as the rate we got is so low it's not longer possible to afford another alternative.

The builders solicitors have just sat on the document for weeks now, despite constant chasers. It's got to the point that my original valuation for the help to buy expires this Thursday, and it's all going to fall apart unless I pay for another valuation - which if it's higher than it was in December will mean even more costs! I'm so angry, it feels like they have treated us with disdain and are at the bottom of the pile - and as they are not our solicitors we have no right to contact them or even complain to anyone about this. I feel like they are absuing the system and it feels like they have a licence to print money.

Throughout this period, we have suffered bereavement and it's been so hard coping with this additional stress. I'm on maternity leave so the extra money was all of the money I saved for maternity. If costs carry on increasing like I'm going to have to return to work earlier than planned as I've already used up 80% of the money I saved for my leave on these extra costs. I feel sick just thinking about how much this has affected my life and I just want it to be over.

Sorry, that was so long and probably missed some key details, but I just wanted either a hand hold and reassurance from anyone who has been through the same, or to warn anyone thinking of going through this to make sure you've done your research as there is potential it could cause you a lot of stress when you have to remortgage a new build property. How this is allowed to happen with the scheme I don't know. It's got the potential to create mortgage prisoners.

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Whattodo121 · 21/03/2022 17:57

Selling our help to buy property last year was unbelievably hideous and stressful. We had expiring valuations, endless fees with seemingly nothing to show for it. Our solicitors were also totally shit. It nearly gave me a nervous breakdown and took months to be properly sorted. However it did get sorted and we managed to escape and have been in our new house for nearly a year. I hope it gets sorted for you soon.

PetrasPurse · 21/03/2022 18:09

@Whattodo121. Thank you for sharing. It's good to know I'm not alone in this seemingly endless nightmare. I'm glad it worked out for you and you can out it behind you now. X

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Speakuptomakeyourselfheard · 21/03/2022 18:24

I might be totally off base with this OP, but would it be possible for you to contact the top man at the actual builders? If you can find out who it is, I'd then be tempted to email or even phone him and let him know that his solicitors are causing so many problems. Tell him a little about your bereavement and how stressful it's all been, and maybe you'll be able to get him onside so he kicks arse. Just a thought, as not being pro-active would drive me nuts in a situation like this. Good luck, I do hope it all works out for you.

PetrasPurse · 21/03/2022 18:35

@Speakuptomakeyourselfheard

Thanks, I totally appreciate your advice here, but we bought the house 4 years ago and they have been completely hands off with anyone's complaints past the two year mark. They didn't plumb half the houses properly either but this didn't reveal itself until too late, so as each week passes it's another leak. 😡

This issue is one that will affect anyone with a new build that has to pay a management fee. It feels like the new leasehold scandal as more people will run into this issue (apparently something happened the end of 2021 which made mortgage companies jumpy about people having this deed).

That being said, as we have nothing to lose, and the builder is a private company rather than a PLC, I may well try to complain to them tomorrow about this just so they know. It's a nightmare when there are so many parties involved (me, mortgage company, financial advisor, my sols, builders, builders sols, management company, management companies sols, Target, the RICS surveyor) - I don't even know who to start calling if I try to force this through tomorrow.

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PetrasPurse · 21/03/2022 18:36

I should have said "another house, another leak" our house isn't THAT bad 😂

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tierneytarny · 21/03/2022 19:07

It is more complicated to remortgage when paying off the help to buy loan but we found it relatively easy (remortgaged in Feb). The survey was a pain but we managed to complete just before the RICS survey expired. We didn’t need a deed of variation for the management fees (though I’m now panicking about this after reading your thread!).

From a what you can do point of view, complain to your solicitors. You’re paying them to make sure everything is done and done in a timely fashion….if they’re not putting enough pressure on the other solicitors and you’re incurring further costs, arguably they should cover them (this is what we threatened when our survey was due to expire!). I’m a legal professional and argued that the solicitors work was falling below the reasonable standard expected. Suddenly everything took off and it was sorted in time.

Whattodo121 · 21/03/2022 21:20

All the paperwork was hideous - and so confusing. We had the management company transfer to navigate, so had to get a pack from them (£250 to essentially change our names?!) and their admin was awful. However Target were the absolute worst people that I have ever had the misfortune to deal with. Their incompetence was mind boggling and it wasn’t until I made a formal complaint that anything was escalated and resolved. I’m a teacher so couldn’t make any phone calls unless I wasn’t actually in the classroom and it was a nightmare. Regularly on hold for the hour of my lunch break trying to resolve the problem of the fact our solicitors hadn't paid the target money back, despite us completing two months earlier. Target then said they couldn’t accept the money as it was late, so sent it back to the solicitors - meanwhile we had to pay interest payments on a loan for a house we no longer lived in until they sorted it out. Was a nightmare with land registry as well. At least once you’ve bought them out you can relax a bit! I hope this last bit goes smoothly x

PetrasPurse · 22/03/2022 00:25

@tierneytarny

It is more complicated to remortgage when paying off the help to buy loan but we found it relatively easy (remortgaged in Feb). The survey was a pain but we managed to complete just before the RICS survey expired. We didn’t need a deed of variation for the management fees (though I’m now panicking about this after reading your thread!).

From a what you can do point of view, complain to your solicitors. You’re paying them to make sure everything is done and done in a timely fashion….if they’re not putting enough pressure on the other solicitors and you’re incurring further costs, arguably they should cover them (this is what we threatened when our survey was due to expire!). I’m a legal professional and argued that the solicitors work was falling below the reasonable standard expected. Suddenly everything took off and it was sorted in time.

@tierneytarny

I would be the first to complain to our solicitors, but given the number of updates I've had and the chasers they have sent I'm really not sure it's their fault. That being said I am extremely confused about where it's all stuck, as I've said before. I just want to bury my head in the sand!

I'm glad yours got through okay, perhaps remortgaging and buying help to buy at the same time was the issue. I should have just moved the 80% for now and added to it at the five year mark.

It's so weird how we scrimp and save and cut back on things, and then on the other hand you get all these extra charges for seemingly nothing and it makes me think - why don't I say yes to splurging on things I WANT to spend my money on occasionally...

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PetrasPurse · 22/03/2022 00:27

@Whattodo121

All the paperwork was hideous - and so confusing. We had the management company transfer to navigate, so had to get a pack from them (£250 to essentially change our names?!) and their admin was awful. However Target were the absolute worst people that I have ever had the misfortune to deal with. Their incompetence was mind boggling and it wasn’t until I made a formal complaint that anything was escalated and resolved. I’m a teacher so couldn’t make any phone calls unless I wasn’t actually in the classroom and it was a nightmare. Regularly on hold for the hour of my lunch break trying to resolve the problem of the fact our solicitors hadn't paid the target money back, despite us completing two months earlier. Target then said they couldn’t accept the money as it was late, so sent it back to the solicitors - meanwhile we had to pay interest payments on a loan for a house we no longer lived in until they sorted it out. Was a nightmare with land registry as well. At least once you’ve bought them out you can relax a bit! I hope this last bit goes smoothly x
Blimey @Whattodo121 sounds so stressful! Target seem okay if you call them but not so if you're on email. Although they forgot to take the management fee from us for the first 3 years so they don't seem that on the ball.
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tierneytarny · 22/03/2022 11:25

@PetrasPurse it sounds as if your solicitors have updated you regularly but ultimately, you are paying them to get this over the line and as time is so short, I would expect that they would be pushing the builders solicitors more. It sounds like you have had a horrible time of it.

The help to buy loan was definitely not worth it for us….we just about broke even using it but in retrospect, our mortgage advisor who told us to take it gave us bad advice as if we’d just proceeded with a normal mortgage, we’d have been offered a similar rate and we wouldn’t have had the hassle!

PetrasPurse · 22/03/2022 14:29

@tierneytarny I think in our experience it will work out beneficial to use, our house has not increased in value in the last 4 years so we are buying this out at the same price we would have paid for it in 2017 - we've just not had to pay the interest on it until now. We also did have access to an amazing rate because of this way, and we'll have saved ourselves £100s a month vs getting a 10% mortgage on a smaller house. So I'm glad that it was worth it for us, even though it definitely isn't going to be worth it for everyone.

It's not been the best incentive by the government really, because all it seems to have done is increase house prices for new builds. And most of that money has gone in pockets of builders and their shareholders.

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