Exchanged Contracts - Biggest Mistake of my life?

92203 · 8 March 2010 at 7:39PM

Hi There,

Due to my girlfriend having problems travelling to her nurse training in Nottingham, some slightly awkward neighbours, and the financial pressures of living on one income, we put our house on the market last May.

We originally purchased the house in 2006 for £107,000, putting down a 20% deposit towards the cost.

We were aware that the property market was in a bad state so put it on the market for £99,950. Within three days an offer of £95,000 was made, however this eventually fell through.

Over subsequent months, we had a few viewings, one of which resulted in an offer being made for £87,000. We refused the offer, and then in November a buy to let landlord put us in an offer for £92,500. At this time there were some issues with my job (I am the main breadwinner as GF at uni). We accepted the offer, however the buyer's solicitor dragged things out for ages.

This gave us time to think things over a bit and we spent some time thinking of staying, however in a rash moment of impulsiveness we signed our contracts and sent them to our solicitor.

We have now exchanged contracts and I am really feeling bad about it and would do anything to stay on the property ladder. We do not have the flexibility to buy anything we would like in Nottingham, and I feel that we are completely screwed over. We are only going to have £10k left after solicitor fees. I also have concerns about my ability to maintain my current wage packet long term. I currently get £27k p.a from a company who slightly over value me. I think that in the current job market I would be looking at £20 - 23k (if I was lucky) if I had to change roles. I need to be earning at least £25k in order to get a mortgage to buy a half decent house. When my girlfriend graduates in Dec 2011, prices will have no doubt recovered to 2007 levels and we'll find it difficult to get another house

If we wanted to keep this house, what would the legal costs and implications likely be? Our buyer is a buy to let landlord so I doubt he has a chain. I am aware we'd have to pay his costs (which I'm willing to do) and some compensation. Would it be worth me contacting him to see whether he would be willing to cancel the sale.

I would just like to emphasise that I know I have been a short sighted fool regarding the sale of my house, and that I have no right to stop this sale. If the buyer still wants to proceed, I will not stand in his way.

Regards

92203

Doozergirl · 8 March 2010 at 7:51PM

That's all you can do - appeal to his better nature. The cost of 'some' compensation in legal terms could be the 10% deposit plus his legal costs plus compensation that puts him back to where he should be; therefore if your place has risen in value, the additional cost of being able to buy something similar.

Ultimately, if he thinks he's got a good deal then he won't be backing away without a fight. You will have costs to find now or save again for a deposit.

I think ultimately you are going to have to move and you will have to simply put this down to experience.

But it's worth a go - if you are ultimately prepared to move then it might be worth a haggle with him to see how much it takes for you both to withdraw. Bearing in mind that the starting point is going to be all the costs he has incurred so far.

Thinking about it, your estate agent will want their fee as well at this point. You won't get out of that one.

Fire_Fox · 8 March 2010 at 7:52PM

You have signed a legally binding contract with a person who is probably in it for the money. Costs and implications is a 'how long is a piece of string' question - worst case scenario tens of thousands of pounds, but you say you won't stand in the buyers way so ..... You might want to have a skim though WelshWoof's thread, her vendors refused to complete and - whilst the final figure was never divulged - they were compensated for ALL their losses (they were moving their business to the new house, similar in some ways to your buyer).

ETA: good point about the estate agent, Doozergirl.

Sammy85_2 · 8 March 2010 at 7:54PM

I would move on, put any profits your have walked away with in a nice savings account and go into rented accomodation for a while and keep saving. You'll be in a brilliant position when something comes along that you love.

It'll probably cost you so much to get out of your contract that it isnt worth doing.

Good Luck

eamon · 8 March 2010 at 8:03PM

If you don't ask the question then you will never know. Surely that would be the best thing to do.

92203 · 8 March 2010 at 8:07PM

Sammy85 wrote: »

I would move on, put any profits your have walked away with in a nice savings account and go into rented accomodation for a while and keep saving. You'll be in a brilliant position when something comes along that you love.

It'll probably cost you so much to get out of your contract that it isnt worth doing.

Good Luck

Thanks, I think you are right. I'll just have to hope that my circumstances and the housing market don't change too much.

I suppose that once my girflriend is back at work we'll be able to start saving properly.

I anticipate that if we're careful, we should be able to save in the region of £400 per month providing that my wage stay the same and inflation doesn't spiral out of control.

terrierlady · 8 March 2010 at 8:16PM

did the solicitor ring you to get authorization to exchange?

Running_Horse · 8 March 2010 at 8:25PM

So you've been thinking about this for over a month:

http://forums.moneysavingexpert.com/showthread.html?t=2242443

You asked advice on here, got a range of answers, and decided to go ahead.

Now you want us to tell you you can change your mind about a legally binding contract?

Sorry, but you can't. The time to change your mind was several weeks ago.

92203 · 8 March 2010 at 9:46PM

terrierlady wrote: »

did the solicitor ring you to get authorization to exchange?

Hi there,

They didn't ring to gauge whether or not to proceed. I was quite surprised at this myself.

Not to worry, I'll live and learn

happyhunter · 8 March 2010 at 9:52PM

Are you sure you have 'exchanged contracts'? If so, when is the agreed completion date?

Or have you simply signed your contracts and returned it to your solicitor but not exchanged with the buyer's solicitor?

92203 · 8 March 2010 at 9:54PM

happyhunter wrote: »

Are you sure you have 'exchanged contracts'? If so, when is the agreed completion date?

Or have you simply signed your contracts and returned it to your solicitor but not exchanged with the buyer's solicitor?

Defiitely exchanged

Completion date set for Monday 22nd March

Exchanged Contracts - Biggest Mistake of my life?

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