Part buying a house
Discussion
Ok here goes.
We have a flat on the market which is proving difficult to sell.
Looking to move to a house.
Found a house we adore and made the numbers work with keeping our flat.
Broker has been working with the bank and the initial mortgage in principal was great.
Now it’s coming close to exchange found out the bank has changed products and the one we had in place isn’t available and they are unwilling to lend us as much as we first thought!!! Broker is unsure why they have now reduced lending just been told underwriter wasn’t happy with that much lending.
We are in a position where we are £50k short.
Explained the situation to the estate agent which obviously went down like a lead balloon and he is thoroughly pissed off.
We have tried every which way to get the extra £50k and no way seems possible. Borrowing against flat, bridge loan, asked family etc etc.
Estate agent has explained to vendor’s situation and they have given us until 17.30 today to find a solution. He hasn’t told them we are £50k short just a funding issue.
Agent said if we can show for sure we are able to buy with a £50k short fall he will put that forward to the vendor and see what they say. Obviously they won’t be happy.
My question is if they say no to a price reduction is it possible to say we can pay the outstanding on sale of our flat?
Ie get it written up by a solicitor so it’s legal?
We have the equity in our flat the problem is no one is offering on our flat even though we have it up for less than we paid 8 years ago.
We have a flat on the market which is proving difficult to sell.
Looking to move to a house.
Found a house we adore and made the numbers work with keeping our flat.
Broker has been working with the bank and the initial mortgage in principal was great.
Now it’s coming close to exchange found out the bank has changed products and the one we had in place isn’t available and they are unwilling to lend us as much as we first thought!!! Broker is unsure why they have now reduced lending just been told underwriter wasn’t happy with that much lending.
We are in a position where we are £50k short.
Explained the situation to the estate agent which obviously went down like a lead balloon and he is thoroughly pissed off.
We have tried every which way to get the extra £50k and no way seems possible. Borrowing against flat, bridge loan, asked family etc etc.
Estate agent has explained to vendor’s situation and they have given us until 17.30 today to find a solution. He hasn’t told them we are £50k short just a funding issue.
Agent said if we can show for sure we are able to buy with a £50k short fall he will put that forward to the vendor and see what they say. Obviously they won’t be happy.
My question is if they say no to a price reduction is it possible to say we can pay the outstanding on sale of our flat?
Ie get it written up by a solicitor so it’s legal?
We have the equity in our flat the problem is no one is offering on our flat even though we have it up for less than we paid 8 years ago.
Whilst possible to get a legal agreement drawn up and presumably with interest being added the much bigger problem will be getting the vendor to actually accept that.
Sounds as if the agreement would have to be rather open ended in terms of handing over the additional £50k so difficult to see how or why they would accept it anyway.
Not sure what £50k represents as a percentage reduction but can't see the Vendor meekly just accepting that either unless the house is anything other than a really difficult house to sell.
Appreciate not what you want to hear but maybe trying to get hold of a mortgage broker that is more helpful than your current one would probably be my first port of call.
Sounds as if the agreement would have to be rather open ended in terms of handing over the additional £50k so difficult to see how or why they would accept it anyway.
Not sure what £50k represents as a percentage reduction but can't see the Vendor meekly just accepting that either unless the house is anything other than a really difficult house to sell.
Appreciate not what you want to hear but maybe trying to get hold of a mortgage broker that is more helpful than your current one would probably be my first port of call.
Ok what you’re saying does make sense.
A £50k reduction is 3%ish on our offer.
The house was up for months last year at a high price.
Took it off market and back on earlier in the year with a fairly big cut. We offered less than that as well and the accepted fairly quickly.
Honestly I don’t think another broker could get us much more on borrowing. We are already at over x5 borrowing with bonuses from jobs included which many lenders wouldn’t accept.
A £50k reduction is 3%ish on our offer.
The house was up for months last year at a high price.
Took it off market and back on earlier in the year with a fairly big cut. We offered less than that as well and the accepted fairly quickly.
Honestly I don’t think another broker could get us much more on borrowing. We are already at over x5 borrowing with bonuses from jobs included which many lenders wouldn’t accept.
Aiminghigh123 said:
Ok what you re saying does make sense.
A £50k reduction is 3%ish on our offer.
The house was up for months last year at a high price.
Took it off market and back on earlier in the year with a fairly big cut. We offered less than that as well and the accepted fairly quickly.
Honestly I don t think another broker could get us much more on borrowing. We are already at over x5 borrowing with bonuses from jobs included which many lenders wouldn t accept.
In which case I guess you have nothing to lose by indeed asking for that £50k off the completion amount whilst at the same time then saying the £50k will be given to the Vendor when your flat sells.A £50k reduction is 3%ish on our offer.
The house was up for months last year at a high price.
Took it off market and back on earlier in the year with a fairly big cut. We offered less than that as well and the accepted fairly quickly.
Honestly I don t think another broker could get us much more on borrowing. We are already at over x5 borrowing with bonuses from jobs included which many lenders wouldn t accept.
I would be careful not to look like a last minute gazumper so be completely up front.
An interest payment per month could be easily put on any agreement and obviously your Solicitor could draw something up.
Whether the Vendor accepts ( their own circumstances / finances / house steps ) is a completely different matter !
You may also just have to accept given the financial circumstances that sadly the house isn't for you.
Best of luck and "report back "
Wacky Racer said:
JQ said:
Just to be clear, we're talking about £50,000 on a £1,670,000 property?
That's what I thought.Maybe he meant 30%
We offered £1.55m which was accepted but with lender reducing amount coming £50k short.
We have capital in our flat but can’t get that until we sell.
Flats prices have really come down. Not even getting viewings and neighbours all in the same boat.
LooneyTunes said:
If you really want the place: consider offering cash + the flat (values taking into account a hefty discount to reflect the fact that it has been hard to sell) and cover the cost of the legals associated with it.
Not sure the people would want the flat. They moving outside London. The house really is lovely and knew we would be stretched until we can sell our flat.
Aiminghigh123 said:
We offered £1.55m which was accepted but with lender reducing amount coming £50k short.
Stamp duty on a £1.55m house would be £99,750, if you keep the flat and have to pay secondary stamp duty it would be £177,250So it is also going to cost you another £77,500 to keep it.
ThingsBehindTheSun said:
Aiminghigh123 said:
We offered £1.55m which was accepted but with lender reducing amount coming £50k short.
Stamp duty on a £1.55m house would be £99,750, if you keep the flat and have to pay secondary stamp duty it would be £177,250So it is also going to cost you another £77,500 to keep it.
We will get the stamp duty back providing we sell within 3 years.
The situation was we really need to move before August next year. This house came up and it is 99% what we want.
Been looking for 2 years and nothing has come close even houses that have been more.
We had our flat up 4 years ago and actually had more interest then but circumstances meant we had to step back for a bit and started looking again after 2 years.
Houses don’t tend to come up very often in this area.
Aiminghigh123 said:
LooneyTunes said:
If you really want the place: consider offering cash + the flat (values taking into account a hefty discount to reflect the fact that it has been hard to sell) and cover the cost of the legals associated with it.
Not sure the people would want the flat. They moving outside London. The house really is lovely and knew we would be stretched until we can sell our flat.
Have the vendors got other buyers waiting in the wings, or is it a case of them re-marketing the property and effectively starting again? If the former, then you're probably out of luck, if the latter then just keep trying. The deadline could be real, as in they'll sell to number 2 in the queue if you don't sort things out by 5:30, or it could be false in which case you've probably got a bit more time.
In theory, interest rates will be cut on Thursday, this might lead to new mortgage product offerings and it might also stimulate the market (extremely wishful thinking on my part there - we're also trying sell and not enjoying the process one little bit). A stimulated market will be a double edged sword - more chance of selling your flat, more chance of other buyers for the house you're after.
Good luck.
In theory, interest rates will be cut on Thursday, this might lead to new mortgage product offerings and it might also stimulate the market (extremely wishful thinking on my part there - we're also trying sell and not enjoying the process one little bit). A stimulated market will be a double edged sword - more chance of selling your flat, more chance of other buyers for the house you're after.
Good luck.
In terms of them having other parties interested I’m not sure.
Estate agent didn’t answer the question.
I don’t trust him as far as I could throw him.
I mean a month ago he said the vendors had moved most of there furniture out to the new property so need to exchange ASAP. I went round to measure up a large tree that was in the garden for the house insurance and the house looked exactly the same. Haven’t moved any furniture out the lying git
I think we are the only party who have put forward an offer.
Estate agent didn’t answer the question.
I don’t trust him as far as I could throw him.
I mean a month ago he said the vendors had moved most of there furniture out to the new property so need to exchange ASAP. I went round to measure up a large tree that was in the garden for the house insurance and the house looked exactly the same. Haven’t moved any furniture out the lying git
I think we are the only party who have put forward an offer.
Aiminghigh123 said:
Honestly I don t think another broker could get us much more on borrowing. We are already at over x5 borrowing with bonuses from jobs included which many lenders wouldn t accept.
Speak to another broker, there are lenders who will offer 5.5x or 6x income in the right circumstances......Gassing Station | Finance | Top of Page | What's New | My Stuff