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Original poster

Delaying completion once you've exchanged - help!

89 replies

EssentialHummus · 11/04/2017 21:07

Very stressed buyer here.

We exchanged on a property a week ago. Due to complete on Thursday. There's a possibility that we won't be able to - some money that forms part of our completion funds is stuck in a bank account and may not make it over in time.

Has anyone been in this situation? What happened in practice?

I understand that we will be liable for compensation/costs but first-hand experience would be greatly appreciated - I'm beyond stressed by it all.

OP posts:

peukpokicuzo · 12/04/2017 06:14

Only just realised that the word "overdraft" is completely missing from where it ought to be in my post of 22:19 above. Sorry!

EyeStye · 12/04/2017 06:23

This reply has been deleted

Message withdrawn at poster's request.

Bellaposy · 12/04/2017 06:46

As I'm sure your solicitor will explain, if you don't complete on Thursday, you will be served with a notice to complete. You will be charged interest for every day that you fail to complete up to 14 days. After 14 days, they can rescind the contract and keep your deposit. That's the worst case scenario.

Be careful how you play it with your solicitor. You will have had to provide evidence of where your funds are coming from already. However, if you tell your solicitor that the money is now coming from a loan, technically this should be reported to your mortgage lender and the risk is that your mortgage lender won't approve and will withdraw the offer (again worst case scenario). I know a few people have said to involve your solicitor in trying to get the money from the bank but practically there is little they can do. They won't be able to speak to the bank about your account (which is obviously different to the mortgage). It's your job to sort, not your solicitor.

Good luck!

CountMagnus · 12/04/2017 07:24

Can your DH go into an HSBC branch with all the paperwork proving where the money came from / where it's going and ID and get the branch manager involved?

Original poster

EssentialHummus · 12/04/2017 07:38

Thanks everyone. Nothing to really report yet - the relevant bit of HSBC doesn't open til 8am. I'll ring them then.

bell I'm not worried about our ability to complete following service of a notice to complete - within 10/14 days I think we can raise the money elsewhere (bridging loan, personal loan, sale of kidney). What's troubling me more is concretely what this delay will cost me over the long weekend.

count and eye - sadly the rogue HSBC account is in my name only, so DH can't do a thing there. I'm in Naples. The nearest HSBC is in Rome, I think, and I don't rate my chances there.

OP posts:

Finola1step · 12/04/2017 07:47

As the account in question is in your name only, I think you need to be looking for a flight to get you home today so that you can sort this out, face to face in your own branch.

witwootoodleoo · 12/04/2017 07:57

Presumably everyone has removals booked for tomorrow. You might find yourself paying for those abortive removal costs for everyone but your solicitor could advice.

I'd be getting on a flight home to try to sort this out in person. Also worth tweeting HSBC - often companies' social media teams are much better at sorting things than customer service is

CountMagnus · 12/04/2017 07:58

Would your DH be able to go into your current account bank and arrange an overdraft? Not cheap as there will be a set up charge but would get you through?

SoulAccount · 12/04/2017 08:00

This happened to a friend of mine, who was selling and the buyer couldn't complete in time.

In terms of costs, you will be liable for any actual costs incurred. That could include the moving and delay costs all the way up the chain. Anything to do with the reason why the vendors needed to complete before Easter, any storage costs that people further up the chain incur, or temporary accommodation costs. Extra legal fees.

Have you spoken to your solicitor!

Callmegeoff · 12/04/2017 08:01

Something similar happened to us, we weren't allowed to exchange because HSBC wouldn't release the money - some quibble over an illegal dropped curb affecting value. We also had 85% Loan to value ratio.

In the end we did exchange and rented the house we were buying - the solicitor worked out an amount based on what we had already given in deposit. The house was empty and there was no chain.

It took a month to sort, eventually my Dh tweeted every director he could find plus their media people which did the trick.

titchy · 12/04/2017 08:03

I applied for a personal loan online through my own bank a few months ago and had the money within two hours! Similar amount so should be possible.

OhTheRoses · 12/04/2017 08:09

Fly home and sort it.

You are looking at three removal costs, and two lots of hotels (at Easter) plus everyone else's additinal legal fees and bank charges and other associated costs. People will have booked Sky installations, phone, broadband, etc.

You need to move heaven and earth and stop enjoying a holiday.

DropZoneOne · 12/04/2017 08:10

Eek, we had to find £15k in one day after saying we'd use our buyers deposit to cover our deposit (as all our funds tied up in the house). Only it got to day of exchange and it turned out buyers had 100% mortgage. Vendors agreed 5% deposit rather than 10% but there was a fraught few hours sat in the bank clearing out all of our accounts (luckily just been paid), maxing out overdrafts and credit cards.

How much will one of those payday loans cost you? Not something I'd suggest unless it was extremely short term and a last resort.

Original poster

EssentialHummus · 12/04/2017 08:21

Thanks everyone. On hold with HSBC now.

titchy I have applied for one yesterday (personal loan), it's one of the things I'm chasing today. DH likewise.

I asked them whether it would help to be there in person, apparently it wouldn't (the account is an international HSBC account, so me showing up at my branch in south London wouldn't make a difference) - and the issue is not my identity, apparently, it's the money's. Without pulling out my violin, the holiday is a family trip with my gran, aunt and cousins, which my gran has paid for and which has lots of sentimental meaning for her, so I'm trying to balance her desire to have us all here with my need to finalise this purchase. I'd much rather be at home than on an organised coach trip through Italy at the moment.

OP posts:

Original poster

EssentialHummus · 12/04/2017 08:25

Overdrafts that someone mentioned - what is the maximum I could use? Does anyone know? Surely there's a ceiling for how much I could draw out?

OP posts:

BurnTheBlackSuit · 12/04/2017 08:32

I can't help, but just want to wish you luck with it all.

Laststop · 12/04/2017 08:42

Can't your husband apply for a loan too

CountMagnus · 12/04/2017 08:48

For the overdraft option, some banks will allow a temporary (like 31 day) overdraft to allow for a specific issue. You or your DH would need to either phone or go into a branch to arrange though.

Original poster

EssentialHummus · 12/04/2017 08:58

Was on hold for 45 minutes while one guy tried to speak to the team holding the funds. He just came back on to say that he's still not reached them, so will stay on hold with them and come back to me when they come back to him.

He's chucked me £40 compensation for keeping me on hold so long, which is unhelpful but just a nice thing to have happen when everything is going pear-shared.

OP posts:

DancingLedge · 12/04/2017 09:03

Take it as an omen that today will go your way?
Can't think of anything you haven't, keeping fingers crossed for you.

Incredibly long shot, but Sil once got bridging loan from her employer- it was a privately owned company.

FunSpunge · 12/04/2017 09:22

Everything crossed for you OP, what a nightmare!

Hopefully you can sort out today and enjoy the rest of your holiday

Original poster

EssentialHummus · 12/04/2017 09:45

Thanks everyone for the good wishes. No real progress to report yet.

dancing I'm self-employed so no joy. DH, luckily, had an erroneous overpayment of something like £10k from his company a week ago (along with all other staff), which they have just requested back. So that's going to be chucked at this, too. (I can't name them but veeery large company, so there's no chance of other borrowing from them.)

OP posts:

EJC85 · 12/04/2017 09:45

I haven't got any advice, but just wanted to wish you the best of luck and that this nightmare ends soon and satisfactorily!

Kiroro · 12/04/2017 11:46

So you only need to find £20k now.

I reckon DH should be able to get a short term overdraft potentially?

Max out any/all credit cards you have to take out cash (and then pay it into bank and transfer to Sol).

Any friends or family transfer you some cash? I know in this situation I would transfer a few k to a close friend.

Original poster

EssentialHummus · 12/04/2017 11:55

I seem to have spent the whole morning on the phone to HSBC

A bit of the money that was stuck in HSBC has made it out (hard to explain, but it was in two halves) - still needs to get from where it is to DH though, should be over to him soon. DH has gotten an overdraft with his bank, £5000. A work colleague of his has lent us £9000. I'm on the phone to HSBC re an overdraft. It looks like they accepted my personal loan application last night but didn't tell me, so while I think overdraft would be more flexible that seems viable too - just with a high interest rate.

Some progress, basically. Remaining incredibly stressful. My lovely aunt made me a sarnie before they left for the day's tour, so at least I'm fed.

OP posts:

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