Buyer's support thread #5

[scribblegirl]

Sorry for breaking the last one

and for all....

Ah but that's exactly what I mean regarding lack of communication. You've said lender night nit be willing to lend unless there is an extension. If they say that will my solicitor then do something? The docs are being prepared by the vendor's solicitor and is the fact that is happening need to be proved to appease the mortgage company?

I'm really struggling to verbalise my confusion! It's such an alien concept to me that I am not used to having lots of people / companies involved but with barely no contact going on between them.

Kirinm, your sol has to inform the lender of the short lease. The lender will then decide whether or not to go ahead. If they are unwilling to lend, your sol will need to get the other side to do the lease extension before exchange. Which they are doing anyway. It will be in the form of a Deed of Variation to go alongside the original lease and will be noted on the title. Unfortunately, all this work is done without much cause to involve you - could be why there is a lack of communication. Not ideal, but perhaps a heavy workload is preventing him from updating you as French as you would like.

much not French!

People keep putting ideas into our heads now when they find out it is taking so long for the sellers to be ready - latest is that they're delaying exchange because they think a better offer will come along. Aaargghhh.

Hubby rang estate agents and they said that they don't understand why it's taking so long for this mortgage offer to appear. He has told them we just want to exchange so we know we are more protected. Completion can wait.

Estate agents said they don't see why we can't exchange contracts... I thought the sellers onward purchase had to be ready for us to exchange? It's "apparently" just a case of waiting for their sols to receive their copy of the mortgage offer, but this has been going on a couple of weeks now.

I'm never buying again. This worry is having a bad impact on me :(

Oh dear Skittlesss. Don't listen to the EA. He is wrong. You will NOT exchange unless mortgage offer is in and yes, sellers onward purchase has to be ready too (unless they are happy to go independent, ie into rented). Once you exchange, you are legally committed to the transaction. I am surprised your solicitor already has your deposit - they are not allowed to keep large amounts of money in their client account for an indefinite period, but maybe they were ready to exchange, except now the sellers are getting a mortgage, matters have been delayed. They should send the deposit back to you.

Speckle, they've had the money for a month. We feel like the seller must have deceived people into thinking they were further along than they actually were. We are all signed up and ready to go but now feel very uncomfortable with it all.

Sorry, spickle... my phone changed your name

I have rage!! The vendors solicitor told my solicitor that she has no instructions to extend the lease. It looks like they're only prepared to do it if the mortgage company make it a condition of the offer.

We will make it a condition of sale: our valuation assumes a lease in excess of 85 years. This has 74 years and so if we end up having to get the place revalued on the basis that they won't extend the lease, it will be down- valued. As things stand it's been valued at the agreed sale price be exactly.

The guy has made £300k on this sale and h can't be bothered to pay the £600 he's been quoted to sort the lease. Arrrrrgh!

I did say that if the lender has no problem with lending knowing there's 74 years remaining, the sols would not request an extension. However, judging by previous experience I would say that the lender is very unlikely to agree and therefore the lease extension would be a condition of sale. Can you inform your lender of the short term remaining directly? I'm sure your sol would inform them but just in case the lender is not aware? As you correctly state, the valuation is based on a good lease term.

Does anyone know how long it takes to get a mortgage offer when the valuation has been done?
According to sol this is what's holding up exchange but I'm a bit confused as it seemed everyone was ready 2 weeks ago until this mortgage valuation thing cropped up down the chain..

The solicitor will presumably have to tell the lender. Would he do that once the offer is in? That should be hear no later than Monday.

*here not hear

Need - our valuation was done Tuesday 31st. We were given verbal confirmation of the offer on 6th but haven't had the offer yet so no idea if it sets out any conditions.

Thanks kirinim looks like I've another couple of weeks wait after Monday then ...

Yes sol has to inform the lender, Kirinm once he has seen the offer. He will also have looked at the lease and any other pertinent points which he may need to make the lender aware of. There usually will be conditions - i.e. store/credits cards to pay off, any other loans outstanding, whether any part of the deposit is a gift, any other mortgages with other lenders etc.

Need the answer is how long is a piece of string! It depends on whether the mortgage company have questions, what their backlog is like etc. it could be next day or it could be weeks.
Our valuation came in about 2 weeks ago and we're settling down for another week of waiting now.

Well, the vendor has been formally advised not to extend the lease unless the mortgage company insist. I've now sent a copy of a section of the survey, which states that the valuation assumes a long lease and that it needs to be re-valued if the lease is less than 85 years, to the estate agent and my solicitor.

The EA has sent it to the vendor and we are trying to cajole my solicitor into picking the issue up. We are within our rights to get the property re-valued now. There is no room for a change in value as any change means a down valuation.

Ultimately, the EA has offered to contribute 50% towards the cost of the extension and worst case scenario we could pay for the rest but I find it shocking that they're fucking around over £600. Certainly doesn't make me think very highly of the vendor now.

I've told our solicitor that the best outcome might be the mortgage company insisting on an extension - I'm hoping he takes my subtle comments as a suggestion that he recommend it being a condition of sale to the mortgage company!

I find it shocking that they're fucking around over £600. Certainly doesn't make me think very highly of the vendor now.

Agreed. I don't understnad why they don't just sort the extension if eveyrthing re the freeholders is so amicable? Hope it gets sorted.

whois exactly. He claims to get on with them well so why not just get the ball rolling? He's certainly in a better position to do it then we are. His tenant moves out in July. Adopting these tactics is odd given that the longer the sale takes, the more rent payments he will start to miss. One months rent will be more than £600. Utterly ridiculous!

I've woken up today not caring about the flat. The vendors conduct has put a dampener on things and as we are not the ones in a rush to move, we don't intend on hurrying the process up anymore. He has been deceitful and the least he ought to have done is tell us several weeks ago that he was going back on his agreement.

No flat stuff happening for a bit now. I'm going to detach myself from the process just in case it all falls through.

Same here kirinm Im trying to detach, the shine of moving has sort of gone and Im not excited about it anymore. I was even thinking about staying where I am last night.
Nothing I can do but wait so need to stop thinking about it all and the what ifs..

Needs - Same. Any excitement I had went yesterday and now it's just hassle. Even started to look on Rightmove again.

Kirinm, I know you're having a rest from buying talk today so I'll whisper very quietly (and I know it's London but hey!)... freehold... oops slipped out sorry!

I'd love to buy freehold (I can certainly see the advantages now) but houses in the area we are moving to cost a minimum of £700k so it's not an option. In fact, a flat where we currently live would cost the best part of £750k.

London is so expensive - SIL's place is worth around that figure too but expensive SE postcode!

On a positive note, I really think the lease extension will be a condition of the mortgage, just a waiting game now