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Original poster

Almost seven months into a sale - a week after we agreed to exchange - the buyer’s bank have flagged an “issue”

170 replies

Suitcasesuitcase · 21/05/2022 15:12

We accepted this offer almost seven months ago. It has been an endless, tortuous sale with excruciatingly slow back and forth from their solicitor. We have threatened to ditch these buyers twice, but haven’t because of promises that an exchange could happen “next week” if we just hang on (those “next weeks” were months ago).

We finally agreed on a completion date (end of this month). Every day last week we were supposed to exchange.

At 5:30pm on Friday, we discovered exchange won’t happen because the buyer’s solicitor said the lender’s legal department have flagged a problem that the solicitor has answered and now they have to wait for the bank to okay it all. My experience with these buyer’s solicitor says to me that no completion will happen this month.

How is it that the bank - SEVEN MONTHS after we accepted their offer - have JUST flagged an issue?!

And what kind of issue would it be anyway?!

Not completing this month is going to have a bit of a disastrous financial impact for us. I don’t know what on earth to do.

OP posts:
senua · 23/05/2022 13:11

our EA who is going to tell the seller that if we don’t complete by the end of the month the price has risen and we want our mortgage paid.
I'd go more assertive than that; I'd demand a non-refundable deposit now.
That way (a) there will some money in your bank account (before) by June 1st to cover the mortgage if the timetable slips and (b) it will prove that the buyer is serious.
If they refuse then that tells you everything you need to know ... and can get on with relisting.

darlingdodo · 23/05/2022 13:59

Suitcase, sorry, only just saw your question - it's actually happened twice - first time buyers solicitor 'forgot' to tell us they didn't have funds in place on the day we were supposed to complete - we'd actually already moved into a rented place so told them if they didn't pay the rent for as long as it took them to complete we were pulling out. Luckily they really wanted the house so fronted up with first month's rent immediately.

Second time, it was the other way round, we were purchasers and vendor lied about building regs issue. We refused to complete until it was sorted and told them as we were homeless because we'd sold our place (one of those chains where we were supposed to move out of our old place into the new place on the same day), we would be expecting them to fund accommodation for us or we would pull out. They ended up paying for a self catering cottage for 2 weeks, and a cattery bill! The cost was taken off the purchase price we paid.

Original poster
Suitcasesuitcase · 23/05/2022 14:17

Big surprise - nothing whatsoever is happening. Our vendor is “trying to call the solicitor”, but the end of the working day is looming. This is trick they played before when we told them to exchange or the deal was off, they were suddenly unable to get hold of their solicitor for days until they hoped we’d leave them alone. Which we did, and which I now regret!

I don’t know why my solicitor said exchange needed to happen today for an end of the month completion, I assume it’s because the bank needs 5 days to ensure the money will be released like someone suggested upthread? I will ask!

Well, depressing for us, but in a couple of hours the deal is off if we don’t hear back from them accepting our condition of a higher offer and mortgage paid if we complete in June (which they’ve so far - I can only presume - ignored).

OP posts:
Original poster
Suitcasesuitcase · 23/05/2022 16:25

Another update - exchange can’t happen today because apparently the lender read the lease and wants a deed of variation. Apparently nobody knows why or what’s wrong with the lease - or even how the lender read the lease in the first place (including the buyer’s solicitor, apparently!). Our solicitor spoke to theirs and reported this back.

So exchange can’t happen today.

But our EA feels very uncomfortable going back to our buyer and saying they have to pay our June mortgage or the deal is off. He said he wants a figure in writing. Now I’m not sure if it’s an ok request?

OP posts:
iex · 23/05/2022 16:30

Suitcasesuitcase · 23/05/2022 16:25

Another update - exchange can’t happen today because apparently the lender read the lease and wants a deed of variation. Apparently nobody knows why or what’s wrong with the lease - or even how the lender read the lease in the first place (including the buyer’s solicitor, apparently!). Our solicitor spoke to theirs and reported this back.

So exchange can’t happen today.

But our EA feels very uncomfortable going back to our buyer and saying they have to pay our June mortgage or the deal is off. He said he wants a figure in writing. Now I’m not sure if it’s an ok request?

Of course its ok - get stroppy

Original poster
Suitcasesuitcase · 23/05/2022 16:33

Does it happen often? Suddenly I’m second guessing myself!

OP posts:
senua · 23/05/2022 16:36

Of course its ok - get stroppy
Seconded. Get stroppy with buyer and EA.
How many times will you allow your buyer to string you along? Demand a show of good faith (otherwise known as cold, hard cash) from them.

LaMariposa · 23/05/2022 16:37

At this stage I’d tell them to jog on, and also tell you EA you are going to re-list with another agent. They are supposed to be working for you!

senua · 23/05/2022 16:38

Does it happen often?
Who cares? Aren't you past etiquette and niceties by now?

FiloPasty · 23/05/2022 16:49

Estate agents are just worried about missing out on commission. How much is your mortgage? Be firm and state a rounded up amount. They need to feel like you mean it.
good luck

beebon · 23/05/2022 16:50

How have you gone on this long. I sold our house 1.5 years ago and lost my temper at our ridiculously cheeky buyer who kept finding things to reduce the price. In the end I said if they don't agree to purchase and then set a date for exchange and complete then they can foxtrot Oscar.
They magically found a way to hurry up and buy it after that.

Astralis · 23/05/2022 16:54

It's not just a month's mortgage- the cost should also include council tax, utilities etc. Also your house insurance may need to be changed if you're not living there.

At the moment the delay doesn't seem to bother them. Maybe it suits them. You need to change that.

You are perfectly entitled to change the price and details of the sale, or start looking elsewhere.

ethelredonagoodday · 23/05/2022 16:54

Hi OP

I've read all your posts although not all the other messages on the thread, and now for some reason can't get everything to load up.

Anyway, that doesn't really matter.

What I was going to say was, your EA isn't necessarily going to act in your best interests, they'll act in the interests of what will get them the greatest commission. Not suggesting that all EAs are like this, but can be quite variable.

After everything that happened you'd be quite within your rights to suggest an additional figure to your buyers for late exchange/completion and if they refuse to pay it, then pull out. Are you in a chain? I can't recall from the previous messages. Sometimes people elsewhere in the chain can exert pressure but that's all very dependent on circumstances.

Apologies again if I've missed something crucial, pages aren't loading up properly. 🙄

KerryO87x · 23/05/2022 16:59

Op did you get any further forward today?

HSKAT · 23/05/2022 17:00

Tell them the figure and send it.
This is not the first or last time someone has requested this.

Original poster
Suitcasesuitcase · 23/05/2022 17:07

Thanks all. I think I was quite meek and all I requested was the mortgage (which, as I mentioned before, is huge, which is why financially having it and rent is a killer - £2100). But you’re right - we have council tax and other bills associated with still owning it.

I don’t know if the EA passed on the price change for completion in June or not. He has passed on the request for mortgage payment to save the sale though. But he really seemed reluctant to do any of it.

But we’re no further on. Which means that I think this deal is over, which is so depressing! But I can’t be strung on any more! It’s too stressful.

I just don’t understand at all what is going on - why the lender saw the lease and why they want a deed of rectification and what for. It’s boggling my mind. The solicitor must have sent it to them - but why? We’re not being given this answer either.

OP posts:
RainingYetAgain · 23/05/2022 17:19

I assume your exisiting property leasehold. DH is a director of a management company for a flat he owns and they have just had a request from a lender to amend the lease so that if the owner doesn't pay the ground rent, the Freeholder has to inform the lender before they "seize" the property. I presume the lender will pay the ground rent and then reclaim from the Mortgagee. Might that be the issue?
Does your "old" council give a period of relief from rates when a house is empty. Ours allows 28 days which gives a bit of breathing space.
I would ignore the EA being uncomfortable, they pay your costs- including rates, service charge and I would probably ask for your rent rather than mortgage if its higher. I think that you should make it clear that if they wait, the price will be going up regardless.

Original poster
Suitcasesuitcase · 23/05/2022 17:41

RainingYetAgain · 23/05/2022 17:19

I assume your exisiting property leasehold. DH is a director of a management company for a flat he owns and they have just had a request from a lender to amend the lease so that if the owner doesn't pay the ground rent, the Freeholder has to inform the lender before they "seize" the property. I presume the lender will pay the ground rent and then reclaim from the Mortgagee. Might that be the issue?
Does your "old" council give a period of relief from rates when a house is empty. Ours allows 28 days which gives a bit of breathing space.
I would ignore the EA being uncomfortable, they pay your costs- including rates, service charge and I would probably ask for your rent rather than mortgage if its higher. I think that you should make it clear that if they wait, the price will be going up regardless.

It’s actually share of freehold but we have a management company and there is no ground rent.

Our EA has got back to us saying this:

”It is very unlikely X Buyer, much less their dad once he knows about it, will consent to paying that as they are under no obligation to do so.

“It would also likely be declared to the solicitors, who in turn would have to declare it to X BANK as her solicitors are also effectively acting for the bank and this introduces another variable into the transaction.

”I know that the process has been very emotional and frustrating. It is now very unlikely that we are going to hear back from X Bank before the end of today and in turn hear back from X’s solicitors about either the deed of variation or expediting the completion date.

“Is there no other way to meet your financial obligations and are you able to wait another day please so that we can at least hear back from the buyer side since they are still chasing X Bank and it’s likely they can give some further clarity with a bit more time?”

OP posts:
IncompleteSenten · 23/05/2022 17:47

They are going to carry on messing you about.
It's time to say no, we have been more than patient. The house is going back on the market.

FiloPasty · 23/05/2022 17:58

I agree, the estate agents seem to care more about the buyers than you. It’s time to tell them you are putting the property back on the market. Sounds like they have a very slow solicitor their end too.
Id also stand firm on the extra costs too. Speak to your solicitor and make this very clear, at this point I’d rather walk away than let them play you along.

HSKAT · 23/05/2022 18:14

He absolutely does not want to ask them for the payment.
I would say ask for the payment or it's off and I'll relist with someone else.

notapizzaeater · 23/05/2022 18:16

Id be reminding the EA that they actually work for you not them !

kirinm · 23/05/2022 18:24

A deed of variation is going to cost extra money and then need to be approved by the other freeholders - who will potentially need their own legal advice. Have you extended?

I am in the process of having a licence to alter drawn up - it is just to show we made changes in our share of freehold place but as we didn't change the footprint of the building, we don't need a deed of variation. That process has been underway for about 6 weeks already.

You are potentially looking at a very long delay with a deed of variation unless you know your other freeholders are ready and willing to do whatever they need to do quickly.

I'm sorry OP this sounds like an awful process (and your EA sounds like a dick too).

senua · 23/05/2022 18:26

”It is very unlikely X Buyer, much less their dad once he knows about it, will consent to paying that as they are under no obligation to do so."
That's the whole point!!!!!!!! It proves their goodwill (or otherwise).
Time to start hinting that you are going to re-list with a new EA if they don't sort this out.

Original poster
Suitcasesuitcase · 23/05/2022 18:33

kirinm · 23/05/2022 18:24

A deed of variation is going to cost extra money and then need to be approved by the other freeholders - who will potentially need their own legal advice. Have you extended?

I am in the process of having a licence to alter drawn up - it is just to show we made changes in our share of freehold place but as we didn't change the footprint of the building, we don't need a deed of variation. That process has been underway for about 6 weeks already.

You are potentially looking at a very long delay with a deed of variation unless you know your other freeholders are ready and willing to do whatever they need to do quickly.

I'm sorry OP this sounds like an awful process (and your EA sounds like a dick too).

Oh crikey!! I can’t even imagine what they want it for and neither does anyone else 🤪

OP posts: