Strange buying process for a house! any thoughts???

benood

I wouldn't be that concerned about a complicated contract - as long as you're confident in your solicitor and can get acceptable answers to the questions raised - my main worry would be the mortgage valuation issue.

I'd want to understand why the vendor wants to do it this way, and ask for a cut of his savings -30%?

dander

I wouldn't do it myself. It just seems like un-necessary mess and complication which has no benefit to the purchaser at all. I don't know what the buyer is trying to avoid - whether it's tax, mortgage redemption or what, but to have the property on the market and only reveal these kind of conditions after an offer has been placed smacks of some level of dishonesty, and suggests a vendor I would rather steer clear of. Why were you not told any of this when you were viewing?

Darth_Marty

I think you guys are too wary of something that whilst not commonplace really isnt that unusual. Obviously you should look into the reasons he wants it that way but if the solicitors can make it work, and its the property for you, go for it.
Just see what happens.

Mickyfinn

It may be a rent to buy scheme or due to a redemption penalty as mentioned earlier. As long as you get what you want and that it doesn't cost you any more.

In this current market new methods of buying and selling houses are being developed to keep the market going. Solicitors can easily kill deals as they are trained to look at the worst case scenario by default even if there has only been 1 bad case in x number of years.

I do creative deals like this for my job and houses can be bought and sold in many different ways - I can buy a house in thirty minutes (instead of 2-3 months+ in the traditional way.) These techniques are used in other countries every day - the UK is at least 10 years behind the US for example.

Best of luck

Phil

Gangstabird

I would say don't do it. Once you exchange contracts, you are legally bound to buy the property and if you hand over anything more than 10% then they can keep it.

I cannot see a solicitor agreeing to this unless you take out a 6 month tenancy agreement.

I wouldn't touch it with a barge pole.

Gangstabird

6 month tenancy agreement without agreeing to buy the place is what I am proposing.

kje_2

It's interesting about the deposit. Is the deposit held in an account and can't be released to the seller until next March or does the seller pocket it now ? They could disappear into the sunset with the cash if they have the deposit now or ,come March, if your circumstances have changed and you can't get the mortgage then you'll lose the deposit. Lots to ask your solicitor. Seems far too complicated a purchase for me to be tempted to buy.

dawsinho

Hi Chaps,

Firstly spoke to the estate agent this morning and enquired if the vendor would foot the cost of extra work by my solicitor.. this was a resounding "no" as in his opinion costs would be rather small because in essence all that needs to be done is to look over a contract and give it the ok (or not so..). plus their is another buyer waiting in the wings apparently.

Got on the phone to my solicitor and explained the situation and she has agreed to contact the vendors solicitor and obtain a copy of the proposed contract and check through it. This is done at no cost to myself unless i agree to the contract and at which point will get charged for my solicitors services.

I put all my points across to my solicitor, most of which she pre-empted me on anyway, which was reassuring.

Dander - I wasn't imformed of anything whilst viewing the house only when i put my offer in.

I know of a house which was sold a few doors down last month, again by the same estate agents and would hazard a guess it ws done in a similar way - v tempted to pop round and enquire, although that may be a little to cheeky! lol

All should hopefully become clear tomorrow.

Phil

jamtart6

dawsinho - i really dont think there would be another buyer waiting in the wings. by all means go for it, but make sure you dont lose money

GDB2222

jamtart6 wrote: »

dawsinho - i really dont think there would be another buyer waiting in the wings. by all means go for it, but make sure you dont lose money

If they had another buyer they would run two contracts. I think this is a phantom buyer.