u/AromaticAnalysis0

I was due to complete and exchange on a house purchase today, but the mortgage lender raised a last minute query about underpinning which took place as part of a cellar conversion not having a guarantee of work (despite it having building regs sign off). They won’t budge and release funds without the guarantee.

The purchase needs to go through in the next week or two or the chain will collapse (rental agreements, mortgage deals expiring etc)

Speaking to other people involved they think it’s unusual for a mortgage lender to take this stance if building regs is in place, vendor has had a remortgage since the work with no issues etc.

We’re going to try to pursue the contractor who did the work for a guarantee, which he has said he’s happy to do but don’t know how long it will take or if it will ever materialise.

Other option is to try and get another mortgage in place who may not be as strict about the guarantee requirements.

So my questions are:
Would a mortgage broker be best placed to help us in this situation? Any chance of getting it through in 2 weeks (good LTV so will probably be desktop valuation)? Any recommendations for a mortgage broker to help in this situation and to act quickly?
And anyone any experience of more lenient lenders on stuff like this?

Thanks!

We’re supposed to be completing on our house sale/purchase tomorrow (in England) and the whole thing might collapse because of something our mortgage lender has raised day of exchange/day before completion

Background: the property has a cellar conversion that involved some proactive underpinning, no structural issues. This was all done with building regs sign-off, everything above board. Our lender has had all of this information for about four weeks.

Due to a long standing downward chain there’s pressure get it done by tomorrow because of expiring mortgage deals (that have already been extended) so therefore exchange and completion we’re having to happen close to each other (was supposed to be exchange today, complete tomorrow)

Today, the day before completion, they’ve come back saying they won’t release funds unless we can provide a guarantee from the contractor who did the underpinning work, and written confirmation that home insurance is available on a standard basis. They’re saying it’s a legal issue so it needs to go through their legal team, who are now closed for the evening.

The vendor is trying to chase the original contractor for a guarantee. We’re looking at getting home insurance quotes tonight to prove it’s insurable on standard terms. Our solicitor has mentioned indemnity insurance as a possible route.

My questions:

Has anyone been in a similar situation and got it resolved last minute?

Will lenders actually accept a legal indemnity policy or are they likely to dig in?

Is same day exchange and completion even realistic if we can get this resolved tomorrow morning?

Anything else we should be doing tonight / first thing tomorrow?

The chain collapses if it doesn’t happen tomorrow which would be an absolute nightmare. Any advice or experience really appreciated!