Potential gazunder

HouseBuyer_2

Hi all,

First of all, we've already decided to buy the house and understand that we're in negative equity the moment we move in so none of the don't buy now brigade please.

Would just like specific advice, we offered and was accepted on a property 12 August. It is vacant possession (more or less), probate sale and we have mortgage agreed and ready, in rented property so can move quickly.

We confirm mortgage and get all the things ready. Vendor receives a form from our solicitor to complete protocol forms. Vendor goes on holiday without filling in the forms, chase in mid September. Solicitors commission the environmental search, the HIP is still in date (done March 08) so nothing else needed.

We view the house with vendor once again, confirming that we need to give notice on 29th of each month and reluctant to do so unless we have exchanged, or close to exchanging.

Ring estate agent today to see if potential to exchange anywhere near yet. Our solicitors have not received the FIRST set of forms sent in August. :mad: Tell estate agent will be ringing back tomorrow morning with revised offer.

We don't want to lose the house (we've spent £460 on survey and £200/£300 on associated fees, so it's not the money but it ticks lots of boxes) but am so cross beyond belief when all the estate agent said was that he wished the solicitors would speak to each other.

I told him house prices were dropping each month and the earliest we can move in is now November where the price we agreed in August is now worthless.

I loathe the idea of gazundering but what else can I do now?

macaque_2

HouseBuyer wrote: »

Hi all,

First of all, we've already decided to buy the house and understand that we're in negative equity the moment we move in so none of the don't buy now brigade please.

Would just like specific advice, we offered and was accepted on a property 12 August. It is vacant possession (more or less), probate sale and we have mortgage agreed and ready, in rented property so can move quickly.

We confirm mortgage and get all the things ready. Vendor receives a form from our solicitor to complete protocol forms. Vendor goes on holiday without filling in the forms, chase in mid September. Solicitors commission the environmental search, the HIP is still in date (done March 08) so nothing else needed.

We view the house with vendor once again, confirming that we need to give notice on 29th of each month and reluctant to do so unless we have exchanged, or close to exchanging.

Ring estate agent today to see if potential to exchange anywhere near yet. Our solicitors have not received the FIRST set of forms sent in August. :mad: Tell estate agent will be ringing back tomorrow morning with revised offer.

We don't want to lose the house (we've spent £460 on survey and £200/£300 on associated fees, so it's not the money but it ticks lots of boxes) but am so cross beyond belief when all the estate agent said was that he wished the solicitors would speak to each other.

I told him house prices were dropping each month and the earliest we can move in is now November where the price we agreed in August is now worthless.

I loathe the idea of gazundering but what else can I do now?

A tricky one. Gazundering is not nice but a person is also entitled to take stock of material changes in the circumstances. Today's events would qualify for that in spades. The vendor (or his solicitor) is also somewhat culpable for delaying the progress. In your shoes, I would feel justified in making a revised offer which reflects recent events. I would also offer to hold that price providing they exchanged by a specified date.

(repeated gazundering or gazundering at the last minute strikes me as very bad form)

poppysarah

You'd be in negative equity if you move in? But aren't prepared to lose a few hundred quid in fees.

You're potentially 50k in negative equity after 3 years. Now how does that small fees issue sound?

Gazunder or get out.

You're concerned about an extra months rent needing to be paid? I suspect your finances are so tight you really shouldn't be buying a house at all.

Do you have a spare 3k for repairs/decoration etc etc?

HouseBuyer_2

poppysarah wrote: »

You'd be in negative equity if you move in? But aren't prepared to lose a few hundred quid in fees.

You're potentially 50k in negative equity after 3 years. Now how does that small fees issue sound?

Gazunder or get out.

You're concerned about an extra months rent needing to be paid? I suspect your finances are so tight you really shouldn't be buying a house at all.

Do you have a spare 3k for repairs/decoration etc etc?

Always a joker looking for the bad news on this boards. We have a 25% deposit, we have 10k put away for moving fees and emergency expenses. We take home 3.5k each month, mortgage repayment is less than half of that. We have no other debts.

If you read carefully, the fees are NOT an issue. I am prepared to lose the house, OH isn't.

I would like advise on how to approach the situation, I know there is immenent financial meltdown, I can read the news daily. But we would like a home and it's making OH miserable that we're renting (and have been for a long time)

poppysarah

" it's making OH miserable that we're renting"

That's very telling and sad. You claim to be loaded but OH's happiness rests on owning a house.

The ratio of mortgage payments to income is massive. And yes you do have a huge income there - you don't think you're overstretching there?

By the fact you're asking, you already know you're paying well over the odds for a house.

Probate sales can drag on for months. Someone died at Christmas near me and his house has still not been sold.

Alan_M_2

Considering the sums involved I'd be informing the vendor that due to the their delays/incompetence I will be instructing a new survey at their expense due to current market conditions. Your offer made in August will then be reconsidered in light of the world financial crisis and details of the revised survey.

If they aren't prepared to play ball walk away, you either play hard or roll over and take it, there is no middle ground.

mrs_deadline

What's the priority, getting the keenest price or getting faster progress?

If you want progress, the threat to reopen price negotiations is counterproductive, it could put a spanner in the works just as the vendor is getting their act together, or give a reluctant seller an excuse to pull out. Also, haggling just tells the agent that you're still committed to the house, so no sense of urgency for him! He's acting like it's a done deal. You need to plant a great big doubt in his mind.

How about a message that the vendor has 2 weeks to return paperwork or your offer will be withdrawn altogether? You can't risk waiting around indefinitely till your mortgage offer expires. Whether your OH will let you follow through is down to your powers of persuasion, but if you need certainty one way or the other, you have to set a deadline and force their hand.

If they pull out, it's probably what they were going to do anyway, at least you'll know sooner rather than later.

hethmar

Could you do as above - give them a deadline and in the meantime, to cheer up the OH and to look at other possible good buys, start looking at other properties on the market?

ad9898_3

This thread just shows up what a complete and utter joke EA's and solicitors are, weeks and weeks go by and nothing has seemed to have been done.

The EA should be doing all they can to get this sale through, yet even in these times they are still sitting on their hands doing f**k all as usual waiting for the cheque:mad:, absolute f**kin parasites

My advice tell them you're now knocking 10% off what you offered because of their sheer laziness and if its not complete by mid October, you will knock 1% off per week, until its sorted. That should focus their amoeba like minds a little.

pawpurrs

or they could just tell you to P off.

poppysarah

pawpurrs wrote: »

or they could just tell you to P off.

They could.

But if they're waiting for cash from the sale and need it, they've got more incentive to play along.

Probate is free money.

If they don't need the money they may think they can get more by holding out.