Retention order and sellin a house.

ETRY

Hi all i have a question in relation to a retention order. My mother has sold her house well almost.
The solicitors are holding the downpayment which the buyers have paid. The bank has approved the loan but then at the last hour the bank has come to check the house and they say my mothers shed has planning permission for a 25 square foot shed and hers is 40 and that she has to go to the council for a retention order. Now theres a chance the bank could pull out of giving the loan to the couple so they're also in trouble.
The House was built in 1992 and my mother bought it it 1996 for cash so she had no clue about the sheds planning permission.
My question is who's to blame here my Mother the Auctioneer, the Bank or the couples solicitor? Thanks any info appreciated.

Gumbo

ETRY wrote: »

Hi all i have a question in relation to a retention order. My mother has sold her house well almost.
The solicitors are holding the downpayment which the buyers have paid. The bank has approved the loan but then at the last hour the bank has come to check the house and they say my mothers shed has planning permission for a 25 square foot shed and hers is 40 and that she has to go to the council for a retention order. Now theres a chance the bank could pull out of giving the loan to the couple so they're also in trouble.
The House was built in 1992 and my mother bought it it 1996 for cash so she had no clue about the sheds planning permission.
My question is who's to blame here my Mother the Auctioneer, the Bank or the couples solicitor? Thanks any info appreciated.

Where is the house located?
She needs to apply for retention to keep the remaining shed. She has built above the exempted limits.

It's not the banks fault here as they leave off the check until the last minute just before draw down.

You have no choice here but to allot for retention.

You have a 3 month wait ahead of you though.

If you lodge the retention permission today, it's 8 weeks before a decision to grant and then a further 4 weeks for the final grant which is the important legal document.

That's not counting the time it takes to prepare the application, drawings, site notice and newspaper notice etc etc

ETRY

The house is out the countryside nothing much around except fields. She never built the shed it was there when she bought the property in 1996. The problem is will the bank wait for 3 months and still give the loan?

BryanF

Offer the purchasers 1k off the price on condition they sort out the rentention

sydthebeat

the banks and solicitors are now practicing the due diligence they should have been doing always.

theres really no one to blame for the culture that pervaded in the 90's - 00's... its was a laissez faire widespread culture of "sure it'll be grand"

and i think you may be getting your 'square foot' mixed up with 'square meters'

its quite common these days that planning issues are found on existing buildings while a sale is on going

ETRY

Thanks For the advice guys yes im mixing up the size its square meters. Thanks BryanF, thats a good advice offering the 1k ill mention that to her. All the best

Gumbo

ETRY wrote: »

Thanks For the advice guys yes im mixing up the size its square meters. Thanks BryanF, thats a good advice offering the 1k ill mention that to her. All the best

Ask but it will most likely be refused. I wouldn't accept 1k off as the cost of the retention plus the possible risk that it's refused is not worth it. Also, the bank are financing the mortgage so they will want it planning compliant.

The bank will wait 3 months, that's not an issue. It's whether the new buyer will wait 3 months or just move into the next property.

Best of luck with whatever you choose.
If you post a location, there's many members here that can prepare a retention application in our sleep, so maybe there be one near you that can get onto it ASAP.

sydthebeat

kceire wrote: »

The bank will wait 3 months, that's not an issue. It's whether the new buyer will wait 3 months or just move into the next property.
.

in my experience a buyer will move in no problem, with moneys held back in case.

1K is too little

5K more like it, in case the worst happens

BryanF

ETRY wrote: »

Thanks For the advice guys yes im mixing up the size its square meters. Thanks BryanF, thats a good advice offering the 1k ill mention that to her. All the best

Edit: offering 1k is a good starting point, if the buyers come back and say 3/4 months wait + costs + uncertainty etc you could expect them to request more off the contract sum assuming it's still worth your while...

ETRY

The buyers are talking to the bank at the moment, if they decide not to give the loan then its end of story. Im not sure what arrangement was made with the solicitor and the auctioneer i think they get a percentage of the sale, so if theres no sale they don't get paid is that correct? The deposit is being held by the solicitor, what happens to that?

Gumbo

ETRY wrote: »

The buyers are talking to the bank at the moment, if they decide not to give the loan then its end of story. Im not sure what arrangement was made with the solicitor and the auctioneer i think they get a percentage of the sale, so if theres no sale they don't get paid is that correct? The deposit is being held by the solicitor, what happens to that?

The sale was denied due to lack of compliance on the home owners part. I would imagine the solicitor handling your side will want some sort of fee for work carried out already.

You can never sell the house while you have unauthorized developments in it so best to get it sorted now.