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Is there a lawyer in the house?

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Where do i start. First of all if anyone can give me some pointers or advice it will be much appreahcated as i wish to get out of a contract with a house builder.

Here goes...i bought a new build apartment from a well known builder after agreeing the sale of my house.

As part of the 5% discount deal, i had to use the services of their nominated solicitors and financial advisers to arrange my mortgage.

Basically there financial advisers dropped a huge clanger when arranging my new mortgage. I had a mortgage for £70k and needed a £10 top up to buy the apartment as my existing mortgage was tied in to a 2 year fixed, i had to pay a redemption penalty.

They had arranged a deal where i could port my existing 4.99% fixed rate mortgage to the new apartment and top it up with a £10k new mortgage at a different rate, and so i would have my redemption penalty returned, by staying with the same lender.

Well on the day of exchange it was realised that the mortgage offer that was arranged 6 weeks previous was null and void on the day off exchange, as the terms stated that the port was only valid IF COMPLETED ON THE SAME DAY as the exchange!

Clever to arrange this for a new build that has no completion dates arranged and was not due to be complete for at least 4 months!

So realising they has messed up they allowed me to exchange without a valid mortgage in place without signing any additional paper work to this effect. To this day 6 months later I still do not have a mortgage in place, as I chose not to arrange one as I saw the build taking so long the offer would run out + rates were due to fall, as they have done recently.

My question - as I want out of this contact:

1. Could the fact that any documents I signed prior to exchange were relating to the fact I had a valid mortgage to proceed and then finding out this was void, then allowing me to exchange without any additional documents signed, mean that the exchange could also be invalid or some how not binding?

The very fact that I asked for a copy of my contract and it came back UNSIGNED had me wondering if a rabbit was off here!

2. I hear the terms conditional and unconditional being said by other builders...if i have a valid mortgage arranged does the mean normally i would exchange unconditionally? If i was awaiting an offer it would be conditional to the fact the contract was agreed on condition i got a mortgage?



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I have no expertise in this, but I think it was a good idea to bring it to this forum. I would keep bumping the thread until you get some pointers.  But my gut instinct is: you need a lawyer.  (And not the one who's working for your builder - I can't believe they let you exchange.  Talk about a conflict of interest.)

Thanks for the reply.

Thats exactly why i am here....the nominated solicitors are supposed to be acting in my best interests but the fact they are recommended by the builders and are the very people that allowed me to exchange without a valid mortgage in place means they have that conflict of interest, "namely they messed up and dont exactly what the builder dropping a brick on them".

I would like to gather as much info as i can, before going to the expense of lawyers or wasting my time.

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Guest The_Oldie

I've changed the thread title in the hope that it may be more readily noticed by someone who can help.

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  • 301 Brexit, House prices and Summer 2020

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