Letter of Offer expiry

R

raven

Registered User
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Hello,
We've got mortgage approval for a new build house that we are purchasing.
The house (built to a shell, with roof on) is due to be completed in 4 months approx.
However, the Letter of Offer (from AIB) will only be valid for 3 months. The bank manager is saying that its no big deal to get the letter reissued again in 3 months time for another 3 months.
To me, this seems like a big risk, and means there is no guarantee that funding will be in place at the time of completion, and we could possibly be left being sued for completion.

Any thoughts anyone?...
 
presumably you've only paid a booking deposit to date? your solicitor should have a view on this.
 
Your buyers contract should have an escape clause if mortgage is withdrawn. This was reintroduced due to falling market. It is highly likely that the property will be revalued when the offer expires and your mortgage while not withdrawn will be reduced accordingly. Hard times.
 
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