selling advice buyer has a "friend"

[aiken drum]

I have agreed to sell my property to a couple who are selling their property to down size. They had their own building company that has now folded and I have found out that they are owed a considerable amount of money, hence the close of business.
To cut a long story short they are now asking a friend to take out a buy to let mortgage to make up the short fall on our asking price. My estate agent believes this is perfectly okay as the buyers will in 8-10 months have the money to purchase the house off their friend when administrators have paid them the money they are owed.

My question is should i be concerned? I have informed my solicitor of the situation and am awaiting her advice too.

I am also nearing completion on purchasing my new house and am getting worried that all will fall through and I'll be left out of pocket after all the searches etc.

Any advice will be welcome

[Adam Long]

Re: selling advice buyer has a "friend"

It's isn't as unusual as you think, a lot of investors use other people to take out mortgages for them, we call them "Mortgage Hosts".

The bottom line is that if you are getting your money on day one and the legal title has transferred to the buyer why do you care where the money has come from ???

[brian]

Re: selling advice buyer has a "friend"

Absolutely right from Adam - your concern is that the money is paid to you as a seller. So long as the contracts are exchanged, that's the end of your part of the story.

How things develop with the couple is their own on-going issue, but as above, the cash they are using is legit, so isn't a problem for you. After all, it's had to be run through the banks anyhow.