Buying a home and don't know how anything works

[Idaho]

That should be down to the solicitor to sort out.

Indeed, which is why the delay here is between the two solicitors.

 

[miss direct]

My solicitor says she's on it and will be in touch very soon. I'm going out on my bike, had enough for today.

 

[marty21]

there have been some horror stories about massive rip-off leases for places (even houses) on new developments over recent years.

this rings some alarm bells.

government has made some noises about putting a stop to it, but that does depend on the tories doing something in the interests of average-ish people rather than their rich property developer chums...

Don't worry , it has set off alarm bells with solicitor sister, who specialises in property litigation

 

[WouldBe]

Indeed, which is why the delay here is between the two solicitors.

That's not how I read it. I read it as the sellers couldn't pay off the charges until end of July so it was down to them not the solicitors.

 

[equationgirl]

I am staggered at the thought that two adults could get into the amount of debt that an entire property sale wouldn't pay it off. I'm hoping they just misunderstood.

Have you got a list of the completion figures for the charges? If so that will give you an idea.

 

[equationgirl]

And also, not everyone is taught to be - or even has the funds to be - financially astute.

 

[miss direct]

Just spoke to my own solicitor, who is about as frustrated as I am.

She's given the sellers/their solicitors (who don't respond to emails or answer the phone) until 4pm to say whether they can set a completion date or not. I don't really want to pull out, as I'll not only lose the money I've spent so far, but I do like the property, and don't really want to go back to square one where I still don't have somewhere to live

 

[platinumsage]

Perhaps one of the creditors refused to accept an undertaking it would be paid out of the sale proceeds, so they need to find the money themselves.

 

[miss direct]

Have you got a list of the completion figures for the charges? If so that will give you an idea.

No, but solicitor seems to think it's not a huge amount over (apparently they're waiting for pay day!) and hence they can try to borrow it/find it another way.

 

[equationgirl]

No, but solicitor seems to think it's not a huge amount over (apparently they're waiting for pay day!) and hence they can try to borrow it/find it another way.

I hope they don't go the payday lender route, although that's totally not your problem if the do.

Suddenly it becomes clear why they wouldn't drop below a certain amount when you were negotiating.

 

[equationgirl]

Perhaps one of the creditors refused to accept an undertaking it would be paid out of the sale proceeds, so they need to find the money themselves.

Isn't that the whole point of a charge though? Sounds like they won't have enough to settle all the charges out of the sale proceeds and need to find the additional cash.

 

[miss direct]

Solicitor also advised me to ignore the email from estate agent as it makes no sense.

 

[Elpenor]

I thought this may be a waiting for pay day situation when you said end of the month. Ideally the solicitors can iron it out, however the implication that the vendors can’t really be relied on to make the payment themselves

 

[Elpenor]

A friend of mine is buying a flat - the vendor suggested they moved in before exchange and paid rent till they completed so they did. The sale has now fallen through and they have now been asked to move out!

They have a found new place to buy but now need to move twice in quick succession plus find somewhere to live before their purchase goes through

 

[miss direct]

Given a deadline of next Thursday for completion but they're playing annoying games now.

If they come back and say end of the month or nothing, is it daft to ask for access to the property so I can at least get it painted or quotes for work?

 

[Elpenor]

Yes - in the case of doing work for much the same reason as my friend made a mistake moving in before owning it.

Getting quotes fine. But dont be surprised if the contractors want to know if you’ve exchanged.

 

[marty21]

When we moved to our flat in 1997 ! The guy downstairs had been there for about 10 years, he told us the previous owner of the house (who converted it) had gone bankrupt , he bought his flat and actually moved in before completion he said he just broke in & changed the locks. I wouldn't recommend this course of action.

 

[miss direct]

What if I ask to exchange this week? They don't have to pay anything on exchange do they?

 

[miss direct]

Yes - in the case of doing work for much the same reason as my friend made a mistake moving in before owning it.

Getting quotes fine. But dont be surprised if the contractors want to know if you’ve exchanged.

Its a friend of a friend, dont think he'll care.. he's Syrian, doubt he knows anything about completion, exchange etc.

 

[hash tag]

Why would they be expected to pay off the debts before completion? Isn't the whole point that the money from the sale will be used to pay the debts? I am so confused.

I've emailed both and said I am absolutely not willing to wait until the end of July, I need to complete asap and I will not hesitate to pull out of the entire sale if this continues without a completion date set.

Exactly. All charges would normally be repaid from the sale, not from vendors own pocket. People who hold the charges would normally trust solicitors I would have though.

Do you have any idea what would happen in that case?

If charges are in excess of property value, creditors would get paid according to pecking order. Normally mortgage company first, then order of charge afterwards. After that, it's down to the lenders and the courts.
Sorry you have all this shit to worry about, really am.

 

[miss direct]

Ok so apparently there is no way they can do this before the 30th. Coincidentally the amount causing a problem is apparently due to the amount I negotiated as a discount. Convenient.

Can't exchange beforehand but can request keys to measure, get quotes etc. Will talk to estate agent about that tomorrow.

Feeling really down about it all. Asked solicitor for her advice and she advised against pulling out at this stage. Said usually a cash purchase would have gone through ages ago and the holdups have been due to incompetent sellers and their solicitors.

I'm looking at staying with a friend until completion. Just paid two more weeks on current place and the thought of paying for longer is annoying. Although the filthy wretch across the hallway should be off to ibiza soon, which may change my mind.

 

[Leafster]

Ok so apparently there is no way they can do this before the 30th. Coincidentally the amount causing a problem is apparently due to the amount I negotiated as a discount. Convenient.

If you're being told this by the Estate Agent, ignore it!

 

[miss direct]

Trying to come up with some positives of a few more weeks where I am.
Close access to good bike rides
Evening dog walks with my friend
Easier to get to my animal volunteering
Shower is good
Can pack really well
More convenient for tramlines

I'm trying

 

[Elpenor]

I would try and push back on the “can’t exchange” point. What’s to say they don’t extend this to august? Unfortunately it appears that at best the vendor is not being wholly truthful or aware of their undertakings.

I found on two occasions when selling that my buyers were blatantly being deceitful.
On the day of exchange, the buyer hadn’t sent the deposit. The estate agent called the buyer and the buyer answered and then denied that it was her talking on the phone and claimed it was her cousin speaking and that she wasn’t there!

 

[miss direct]

I've thought the same and said as much. How do I know this doesn't just go on forever? I'm hearing everything via the solicitor...said they need pay day to meet the figure on the redemption statement. Also mentioned interest on the charges - the longer this goes on, the more interest there will be so its in their benefit to finish it off. Have no idea whether to believe or to even care. Solicitor said she would be very firm that this has to be done and dusted on the 30th...not sure what else I can do on my part.

 

[Thora]

Is it possible to exchange now and complete on the 30th?

 

[miss direct]

I asked that and the answer was no, because once exchange has taken place, I am legally bound to go through with the purchase and if for some reason something went wrong then it wouldn't be good. Didn't really understand but solicitor was very firm about that as could mean me taking on the place with debt on it.

 

[Elpenor]

I can see her point now I think about it more given they can’t afford to pay off the debt till completion.

 

[cybershot]

I assume your solicitor isn’t willing to exchange due to the charges complication. It seems pretty logical. Once you exchange theres no going back and what if they default on whatever debt it is. It could potentially get passed into you. If you then pull out you could get sued.

your solicitor seems to know what they are doing so I would follow their advice.

alao as much as this stinks it’s probably going to be very likely you’ll start receiving random debt collection type letters after you’ve moved in. Especially if there’s any debt that doesn’t get paid off and the company sells it off to a debt collection agency. Ignore all of it. Don’t even reply and if any bailiffs come knocking on your door make sure you’ve got your proof documents close to hand!

get on the voting register as quickly as possible too as any past debt on the property could severely effect effect your credit score. I could be talking crap and a lot of this gets sorted quicker these days but it’s something to keep in back of mind and add to the ‘to do list’

ETA: didn’t see the last 3 posts above this one before I replied saying pretty much the same thing. Sorry. Stupid phone.

 

[miss direct]

cybershot that's ok, I've lived in council flats before so am used to that! Also the skanky guy I live with now is constantly getting debt collection letters (only know as he leaves them around communal areas!)