'Problem with bank'

[lizw]

Hi - hope this is the right place to put this! We're currently selling some land with planning permission and have accepted an offer from a friend of the family who we know and trust. He is a cash buyer and we were due to complete this week. The sale has now been delayed by three weeks due to 'a problem with his bank'. As he is a cash buyer I don't understand how the bank could have a problem giving him his own cash? Does anyone have any ideas as to why this could happen?

[squarebear]

He doesn't have the cash to give you?

[Escutcheon]

Presumably your land with planning permission is worth a fair amount and no-one in their right mind would have that amount of cash lying around. However, that said, it shouldn't take that long to unlock it, wherever it is - if it's that liquid???

[lizw]

Apparently yes he does but the bank couldn't get it ready in time for this week. I (being a simple girl) thought that he'd just give us a cheque for the money but it doesn't seem to work like that.

[daffy654]

If his money is tied up in a long term high interest account he will have to give notice to the bank to withdraw his funds.
That is the only problem I can think would delay payment if he is a genuine buyer.

[lizw]

Thank you Daffy654. He's my husband's godfather and we trust him - that sounds like the answer I think.

It's just that this is now the third time we've come across a problem. Our previous two 'buyers' had their offers accepted and then couldn't raise funds due to credit crunch. With him being cash we all breathed a sigh of relief so then when we were notified yesterday of another hiccup we all winced slightly. We're already selling it for a lot less than it's worth but needs must.

[buildersmate]

The first two buyers wanted to borrow more than their banks thought the land was worth.
Sorry, but the land is only ever worth what someone is willing to pay for it - not what you think it might be worth or what someone down the road paid for something similar some time ago.

[lizw]

yes I take your point - but clearly the credit crunch had some effect as the two buyers were builders who wanted to develop the land and banks wouldn't lend to them. The land was valued originally at �400,00 and we're selling it for �250,000. There is planning permission for 12 houses so someone somewhere down the line will make a massive profit.

[Twenty20]

Surely the thing to do would be to ask him what the problem with the money or bank is?

[Nosha123]

I sympathise with you - and also with the two previous buyers who were let down by the banks. We are in a situation ourselves thanks to the banks "changing their policies"

We are all suffering cos of them and its just not right or fair.

He may be genuine and having problems getting the money released depending on how it was invested. High interest accounts do sometimes have tie ins - we had �325k in one but specifically chose one without tie ins - so we could get at it when we found a property.

I would ask him and see what his answer is - your gut reaction will tell you if he is being honest!

[lizw]

Thanks Nosha123 - that was really kind of you. He is a friend of my husband's dad who passed away leaving the land to the family. My sister in law is executor of the estate and is dealing with everything as she is a solicitor. She's fab and efficient etc but keeps things quite close to her chest. The other 2 sisters don't get involved so it always seems to be me asking the questions which looks really bad as I'm the daughter in law. My husband spoke to her last night and she is not in the least bit worried about the situation and says the money will be released in 4 weeks so I'm just going to have to trust her on it. The difficuty is the money will not make any difference to the rest of the family but for my husband and I it will change our lives completely due to horrible debt. So it's hard to take a backseat and be passive.
Thanks for your words - they were very reassuring and kind.

[tamborine]

In some banks a months notice is required to withdraw high-interest monies.