Buying a resale without deeds and awaiting a waiver.
Posted: 10 Jun 2014 17:17
I have a question about buying a resale property without deeds whilst waiting for a bank waiver on a developer loan that is apparently cleared. Whilst not ideal, we risk the purchase falling apart if we wait any longer and it is a relatively inexpensive purchase. I simply want to quantify the level risk before deciding what to do.
What I need to know is whether my exposure to any outstanding developer loan will go beyond the price I pay for the property. In other words, would savings and property in the UK be at risk, or would I simply be risking the amount I pay? The sellers have a waiver but as I understand it,they cannot simply staple the waiver to the assignment agreement and expect it to cover us.
Verbal assurances have been given by the bank that the loan is actually cleared even though it is still showing on the land registry search. I'd no idea why this would be the case, although I just read that it may be due to facilitating the developer to act as guarantor on any customer mortgages . The bank involved is ex-Laiki and I'm told they did this often.
Completion cert was issued October and checks on the developer suggest he has relatively decent financial standing.
What I need to know is whether my exposure to any outstanding developer loan will go beyond the price I pay for the property. In other words, would savings and property in the UK be at risk, or would I simply be risking the amount I pay? The sellers have a waiver but as I understand it,they cannot simply staple the waiver to the assignment agreement and expect it to cover us.
Verbal assurances have been given by the bank that the loan is actually cleared even though it is still showing on the land registry search. I'd no idea why this would be the case, although I just read that it may be due to facilitating the developer to act as guarantor on any customer mortgages . The bank involved is ex-Laiki and I'm told they did this often.
Completion cert was issued October and checks on the developer suggest he has relatively decent financial standing.