Interest payable if late closing

[Lou26]

Hi,
I recently went sale agreed and have most things sorted such as mortgage and contracts etc. We are due to close in 2 weeks and there is a problem with our life assurance. With regard to the interest rate payable on closing after the closing date does anyone know if solicitors enforce this or is it just a threat to make things move faster. I'm getting a bit worried as I really don't have any spare money to pay it if the life assurance does delay things.
Thanks!!

 

[bambino]

I'm in the oposite position to you in that the person buying our house keeps delaying matters meaning that we are still paying interest on our existing mortgage, are paying interest on a bridging facility etc. bad and all as it may sound it's not the vendors fault that you are having difficulty getting cover and imo it's bad form to leave them paying the extra for something that is not their fault. In our case, its costing us €40 per day that the purchaser is delaying us and that doesn't include the storage costs and rent we are paying (she promised she'd be closing last week so we had everything moved by the time she changed her mind).

The interest payable is only charged once a completion notice is served. Our contract date has been changed 3 times by the purchaser and no interest is yet payable as we have not served completion notice.

 

[Lou26]

Hi Bambino,
Thank you for your reply. We haven't been served a completion notice yet so hopefully won't have to pay interest. While I would hate to do someone out of money and I genuinely hope it won't come to that we only went sale agreed on August 4th and the vendor's want to close by August 25th. Personally I don't think that is enough time but being a FTB I don't have any experience of this. We are doing ok bar the life assurance so hopefully we will be able to close in time.

 

[bambino]

That's a very unfair lenght of time for closing, sure by the time you get your formal approval out and send it back to the bank and wait while they sit on it for a week you'll never be able to close that quickly.

Completion notice can't be served until after contract date and you can't be charged interest until it has been served. Good luck with your purchase, in your case I genuinely believe the vendors are being un-realistic.

 

[deem]

I'm not sure I'd worry eitherway, we got served a completion notice for 2 July, however the house was not completed until nearly two weeks later, we then had to complete snag list, order final valuation etc. and it was almost 4 weeks later when we finally completed.

I know its a new house situation, and I'm not sure yours is, but I believe that sometimes the solicitors of vendors include a competion date that is not realistic. Get your own solicitor to contact them and inform them that you want the completion date later than that.