On the verge of a house buying breakdown

[rrrrrreatt]

We had an offer accepted on a house at Easter and we've been ready to exchange since mid July.

The whole process has been challenging - a lot of work was flagged by the survey and we struggled to negotiate on price, when our mortgage was revised we didn't get the figure we expected because the bank applied a undervaluation tolerance (but told no one, our mortgage advisor had never heard of this before), etc.

I'm happy to be open and admit that I struggle with anxiety and stress so I would never have found this process easy. The latest problem is sending me to my absolute limits though - we still haven't exchanged over 2 months later because it turns out the property above is being sold by someone with no legal rights to sell it. They have some POA but it doesn't extend to selling property.

I understand these things happen but since it was discovered no one will communicate what the hell is going on, the most we get is from an estate agent who is lovely but doesn't seem to really get the problem. Our solicitor has asked our seller's solicitor for a full explanation of the issue (e.g. does the person who actually owns the property have capacity to give them further POA? Is it going to court? etc) and they just keep saying they're asking the other solicitor for an update but they won't give any timeframe for a resolution.

Our mortgage offer will expire at the end of the year and it will cost us about £11k more in interest in the 5 year fixed term if we have to reapply because of the BoE increases. We can absorb this cost but it will be begrudgingly, we went for a quick sale because we've already sold so we're living in rental paying someone else's mortgage and our budget for our entire wedding is less than we'll pay the bank in interest for those 5 years.

Understandably, the bank won't consider extending it without a fixed date and evidence there will definitely be resolution and we can't offer that because neither solicitor will provide it to us. The agent also told us the seller (who doesn't have permission to sell) is refusing to speak to them at all because they've said it's making them feel stressed. As far as we can tell we're all waiting to see IF they will get POA for an indefinite period and they've checked out.

We've suggested our (extremely elderly) seller could consider looking for alternative property because we can see multiple flats in the same complex are on the market, this suggestion is ignored by their solicitor. We also told them we were going to start looking at other properties but the market has slowed so there's slim pickings and none of them offer as much space/a similar neighbourhood.

I'm at my wits end - I fantasise about running away some days because I feel crushed by the relentless worry and stress. Sometimes I lie in bed and cry while my partner is at the office. Whatever we do, if it doesn't come good we are going to be significantly worse off - in a much smaller house (all that's on the market in pricier areas we don't like) or paying thousands more for the same house. We've also met our seller multiple times so I feel awfully guilty about the possibility of pulling out and the stress they must be under as well.

Does it get easier? Is there any way to get solicitors to give even a basic update?

I sympathise very much with your predicament, but in your place I would honestly start to look for another property p.d.q.. It sounds like the person trying to sell is, well, I don't think I can say it. But I'm sure you know what I mean to say. 'Too stressed' to tell their own solicitor the simple truth about what they have got up to - which would take all of five minutes? Really?

This sort of (at best piss-taking) seller is no good for people like you (and me) who don't cope well with stress.

I have long felt that it ought to be illegal to sell, attempt to sell, or market a property before obtaining probate, or before proving legally the right under a POA to sell- because until all that is sorted out, a 'seller' is basically attempting to sell a property which is not (yet, or maybe ever) legally theirs to sell, or within their rights to sell. Previous to their right to sell being established legally, they have no more right to sell a house or attempt to do so than any random person who walks past it in the street. I also think estate agents ought to have a duty of care to weed out such sellers before a property is marketed. At best (when it is just jumping the gun) it messes people about, wastes their money, and causes them the sort of stress you are suffering until it is sorted out. At worst, if the seller may never get the right to sell, surely that's fraud?

We've already started looking, when we offered earlier in the year there was 1-2 houses every day that were suitable for us (3 bed, in our price range, etc) now we're seeing 1-2 a week and they're all smaller than the one we're waiting for and in a different more expensive part of the suburb (expensive because there's an artisan bakery and a wine bar down that end but we want to be at the end near primary schools and a park). If we could find a similar sized 3 bed semi in our preferred area I would offer and pull out of this purchase in a heartbeat.

Thank you for being so kind, I'm glad it's not just me that finds it all a bit crackers! At times I've felt like I'm going mad as the agent and solicitor are calm and keep saying "all house purchases have delays" but normally it seems to be a form that needs doing or a delay due to a long chain, not no legal right to sell and refusing to talk to anyone. It's only a 2 property chain - our seller is desperate to move too as his house is no longer suitable for him and he's had a few falls so it's really not good for him either. If the other seller is refusing to talk to anyone or give/authorise updates I can't see how anything can change.

The agents have been at pains to tell us repeatedly that they checked the person had POA before they marketed the property at the top of the chain (which our seller is buying) but the POA had a clause so it's not their fault. Under their code of conduct they have to check it can legally sold before they market it but we aren't able to complain because we aren't buying the property that's the issue.

I have long felt that it ought to be illegal to sell, attempt to sell, or market a property before obtaining probate, or before proving legally the right under a POA to sell- because until all that is sorted out

I completely agree. It took me 15 months to buy my current property due to a probate sale at the top of the chain falling through. The probate sellers turned out to be selfish time wasters, but their solicitors also messed up big time. However, the estate agent told me that these solicitors were in no way liable to me, even though they’d cost me and the rest of the chain a significant amount of money.

My situation was also similar to yours in that the person trying to buy the probate property was elderly and flatly refused to go into rented accommodation. I was so desperate, I even offered to pay their first six months rent! They lost their buyer (my seller) in the end.

Was it worth it in the end? Just about, because the property is in a great location for me and I could afford very little else in the area. But I didn’t get a great deal, and house prices are starting to fall now. If I ever bought again, I wouldn’t touch a chain containing a probate sale with a bargepole (unless the probate had already been granted).

In your case, I would seriously think about pulling out. Two months isn’t long at all by the standards of this country, but the legal issues and lack of clarity would really concern me. At least you have the competitive advantage of being a chain-free buyer and it’s no longer a crazy sellers’ market. I think sellers may take a bit more time to realise that, though - many asking prices are unrealistic now.

All sounds awful regardless but I'm a little confused and have to ask a silly question.

When you say "property above" do you mean:
A flat above your potential flat?
The property you are talking about in the paragraph above?
The property above you in the chain?

We have been in a similar situation, except it was a divorced couple. Judge had already ordered house to be sold as part of the divorce settlement however the ex husband then refused to engage with the selling process. Ignored all paperwork sent to him to be signed, ignored court summons and hearings. Ended up going to the high court and has rightly cost him thousands. Took us 15 months to complete in the end. The lack of communication by our seller's solicitors was horrendous. Noone could tell us when the next court date would be/if this was the final one/what would happen next.

We moved into a cheap rental so we wouldn't lose our buyers. We put offers on various different properties after 6 months, all with big compromises such as size/location as like you prices increased massively. Had to get a new mortgage rate costing us thousands...

We are in now!! But I honestly thought it would never happen. I wish we'd just pulled out when we found out it was having to go back to court though. So many tears and sleepless nights.

I meant the flat above in the chain rather than above either of the properties.

We’ve made no progress in other two months and, despite viewing a few houses each week, found no alternative house to buy. Our mortgage offer (on a v good interest rate) expires early January and the company said they will re-issue with 6 more months for price adjustments so we’re considering making a slightly revised offer.

To be fair to everyone else we sent a letter setting out our position and making it clear we can’t buy it if our mortgage expires and we’ll make a revised offer early Dec to try and gain more time.

The solicitors at the top responded that POA would be resolved last Tuesday and they’re now ignoring everyone. So we’ll be drafting our letter this weekend!!

I really appreciate the comments about pulling out though and I think we need to consider it more. The strain on our relationship and mental health is huge and we’ve been in this situation for over 4 months now with no progress made.