homeowner0411
New Member
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- 1
Hi, everyone. I need some advice.
I am in the middle of a property chain (of 3 parts) that seems to be collapsing in a very near future.
We are selling our house and buying another property.
The buyer of our house (first time buyer) is having issues with her life insurance and it seems that there may be no way out of it. The story is: we were supposed to complete last Tuesday (25/01), on the day before we learned it would be postponed to the 27th, then on the 26th her solicitor told us she had an issue with her life insurance and postponed it for tomorrow (02/02). However, again he called today saying he has no idea of when the issue will be sorted as now it requires action from the bank (?).
The thing is, we have already done the drawdown. And theoretically we have at the moment two mortgages running in parallel that need to be paid, one regarding the house we own and the other one regarding the house we are buying. Next week we were told by our solicitor we should pay both of them. The other option she gave to us is talking to the bank and cancelling the mortgage on our current home, which I do not understand how it makes any sense... as, if the whole deal falls through, what will we be left with?
Another thing that makes this situation quite particular is that the owner of the house we are buying insisted on having a 4-week clause on the contract that says that if the deal is not closed 4 weeks after signatures of the contracts, any of the parts may walk away without any burden. We included this in our contract with the buyer of our property. Next week there will be 4 weeks since contracts were signed. And the seller of the house we are buying was selling her house to move abroad. She has already moved abroad last week - maybe counting on completion?
And then we feel completely lost right now. We don't think the seller will cancel the contract with us, as it seems she is counting on the sale and is already in another country. However, we are starting to think of maybe putting the house back in the market and trying to sell it to someone else? We haven't told this to our solicitor though.
But that is the thing... What about the 2 mortgages? And what about the house we want to buy so much?
50k of the deposit of the new house would come from the equity on our current property. So we were wondering if there is anything we can do. Can we keep both mortgages and get a bridging loan to cover these 50k? Can we... I don't know sell the current house directly to the bank? What about this thing our solicitor said of us cancelling our mortgage on our current house, for sure I don't want to do that, but what does she mean?
Indeed it is a very frustrating place to be, especially when I think about paying 2 mortgages next week - but doing so without being able to move to our new house! If we had to pay for two mortgages but were allowed to literally own both houses, I wouldn't mind. Or at least move to the new one. But now it feels like we are paying for 2 loans while completely in the dark and having no clue of where this whole deal stands.
Thanks everybody for your help!
I am in the middle of a property chain (of 3 parts) that seems to be collapsing in a very near future.
We are selling our house and buying another property.
The buyer of our house (first time buyer) is having issues with her life insurance and it seems that there may be no way out of it. The story is: we were supposed to complete last Tuesday (25/01), on the day before we learned it would be postponed to the 27th, then on the 26th her solicitor told us she had an issue with her life insurance and postponed it for tomorrow (02/02). However, again he called today saying he has no idea of when the issue will be sorted as now it requires action from the bank (?).
The thing is, we have already done the drawdown. And theoretically we have at the moment two mortgages running in parallel that need to be paid, one regarding the house we own and the other one regarding the house we are buying. Next week we were told by our solicitor we should pay both of them. The other option she gave to us is talking to the bank and cancelling the mortgage on our current home, which I do not understand how it makes any sense... as, if the whole deal falls through, what will we be left with?
Another thing that makes this situation quite particular is that the owner of the house we are buying insisted on having a 4-week clause on the contract that says that if the deal is not closed 4 weeks after signatures of the contracts, any of the parts may walk away without any burden. We included this in our contract with the buyer of our property. Next week there will be 4 weeks since contracts were signed. And the seller of the house we are buying was selling her house to move abroad. She has already moved abroad last week - maybe counting on completion?
And then we feel completely lost right now. We don't think the seller will cancel the contract with us, as it seems she is counting on the sale and is already in another country. However, we are starting to think of maybe putting the house back in the market and trying to sell it to someone else? We haven't told this to our solicitor though.
But that is the thing... What about the 2 mortgages? And what about the house we want to buy so much?
50k of the deposit of the new house would come from the equity on our current property. So we were wondering if there is anything we can do. Can we keep both mortgages and get a bridging loan to cover these 50k? Can we... I don't know sell the current house directly to the bank? What about this thing our solicitor said of us cancelling our mortgage on our current house, for sure I don't want to do that, but what does she mean?
Indeed it is a very frustrating place to be, especially when I think about paying 2 mortgages next week - but doing so without being able to move to our new house! If we had to pay for two mortgages but were allowed to literally own both houses, I wouldn't mind. Or at least move to the new one. But now it feels like we are paying for 2 loans while completely in the dark and having no clue of where this whole deal stands.
Thanks everybody for your help!