Mortgage advice -early redemption charge
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Archie_tect
De Skieven Architek... aka Penfold + Horace
- Location
- Northumberland
I'd keep the mortgage going until the 7 weeks are up and ask the FSA ombudsman to intervene if they insist on early redemption- that's just a rip-off.... or complete in 7 weeks... your solicitor can advise on suitable delaying tactics.
The FSA will get you nowhere - as Longshot says, it is a contract term that the borrow agreed to.
And in today's market any seller who is looking for "suitable delaying tactics", when the buyer is otherwise ready to exchange, is a complete idiot.
Archie_tect
De Skieven Architek... aka Penfold + Horace
- Location
- Northumberland
There you go Paul.
Either pay up or be a complete idiot.
Either pay up or be a complete idiot.
threebikesmcginty
Corn Fed Hick...
- Location
- ...on the slake
baldycyclist
Veteran
- Location
- Sunderland
I would see if they will play the game a little?
[QUOTE 2142936, member: 45"]So, due to a buyer's solicitor who doesn't appear to give a monkey's about his clients, we're still waiting to exchange and complete. We're also only 21 days now from the end of our lock-in.
How does it work with exchanging and completing? Is the exchange binding, and if so could we agree to exchange now and complete on 30th? If we did this how much wriggling room would there be for the buyer? She's buying to add to her rental portfolio and isn't making too much fuss about her solicitor, so I suspect she'd be open to a couple more weeks' delay, but I'd be happier if we could at least commit to complete next week.[/quote]
Exchange is binding - they will pay a deposit which should be yours if they back out. I'm not sure if that will help with your mortgage. Have you discussed the issue with your lender? Alternatively, give your buyer a deadline. Make exchange conditional on a specified completion date. The biggest problem will be the lender - your buyer may not be able to force them to act quickly enough.
How does it work with exchanging and completing? Is the exchange binding, and if so could we agree to exchange now and complete on 30th? If we did this how much wriggling room would there be for the buyer? She's buying to add to her rental portfolio and isn't making too much fuss about her solicitor, so I suspect she'd be open to a couple more weeks' delay, but I'd be happier if we could at least commit to complete next week.[/quote]
Exchange is binding - they will pay a deposit which should be yours if they back out. I'm not sure if that will help with your mortgage. Have you discussed the issue with your lender? Alternatively, give your buyer a deadline. Make exchange conditional on a specified completion date. The biggest problem will be the lender - your buyer may not be able to force them to act quickly enough.
EltonFrog
Legendary Member
Instruct your solicitor that you want to exchange as soon as practically possible but you do not, want to complete until the 30 or 31st or what ever date you want. Your solicitor is working for you, he/she is instructed by you and they act on your behalf, not the other way around.
Night Train
Maker of Things
- Location
- Greater Manchester
When I bought my house there was several months between exchange and completion. No problem with that, if the seller agrees.
In my case it was to get substantial works done to satisfy the lender and those works took time. I paid the deposit to the solicitor, who held it until completion, and once all the work was done the contracts were completed and the mortgage paid over and forwarded to the seller and the builder.
In my case it was to get substantial works done to satisfy the lender and those works took time. I paid the deposit to the solicitor, who held it until completion, and once all the work was done the contracts were completed and the mortgage paid over and forwarded to the seller and the builder.
[QUOTE 2142979, member: 45"]I'm not sure what you mean about a possible problem being with the lender acting quickly enough. We want to delay settling the mortgage until 30th November or after. I've spoken to the lender a couple of times and as far as they're concerned if we settle before 30th we pay £1700 penalty and if we settle after we pay nothing.[/quote]
I was referring to your buyer's lender, not yours.
I was referring to your buyer's lender, not yours.
Archie_tect
De Skieven Architek... aka Penfold + Horace
- Location
- Northumberland
I see you chose to be a complete idiot and haven't exchanged contracts yet...
Now you are ready to exchange it will take at least 3 weeks to complete all the documentation from exchange of sales contracts Paul.... the 2 solicitors will not work through everything they need to do any harder than that.
Your solicitor will handle settling any outstanding mortgage on the day you complete when the sale payment is passed from the buyer's, to the seller's, solicitor's client account including any outstanding fees, charges, mortgage release and Land Registry payments.
Just make sure you confirm in writing [acknowledged receipt of email is fine] that your solicitor understands and has taken note why the completion date and time has to be after the early redemption fee point.
My point was that in today's Buyer's Market "looking for delaying tactics" is a very risky strategy for any seller. I'm glad to see that so far it has hasn't cost Mr Paul his sale, but that doesn't stop it being a risk.
Archie_tect
De Skieven Architek... aka Penfold + Horace
- Location
- Northumberland
I know ASC... just being daft... if there'd been any risk that Paul's buyer was getting jittery, he could always have paid up the redemption fee. I work with conveyancing solicitors that act for national housebuilders and even in that cut-throat sector I've never known any purchase move faster than 3 weeks from the formal exchange of contracts to completion so there wasn't any real danger taking 7 from initial enquiry without contracts even looked at yet.
