Vendors pull out AFTER exchange of contract

john_white

Yes it is.

But even a 1mio then a 35k hit on the price isn't that bad.

But if spending a MILLION pounds then the advice would be, listen to the person who was PAID to protect the money being used to buy the house not the effing salesman!!!

YMoney

john_white wrote: »

Well it;s simple really

Pull out and lose 100k+
Stay in the and be in a house that MAY be worth less than you paid.

Financially which is worse?

The surveyor told you it was worth less than your offer and ignored that advice.

The asking price was x and it was valued 50k lower (15k+35k) and now they are offering 40k discounts, so the surveyor knew what he was talking about.

no the valuation come out ok. the price was £900k and we got a £15k discount. They have now reduce similar property which was were on sale of £940k to £900k plus stamp duty, legal fees and carpet. There were only 4 on sale and they all range between £890k to ££940. It is just that we are getting a smaller house for the same price as one of the big one... such a rip off! I understant that the market is bad but to give such a reduction just after we have exchange when we were told that the most discount that they will give is £15k....

john_white

So where does the 35k come in to it?

If it was valued at 900k I don't see the issue?

YMoney

john_white wrote: »

Yes it is.

But even a 1mio then a 35k hit on the price isn't that bad.

But if spending a MILLION pounds then the advice would be, listen to the person who was PAID to protect the money being used to buy the house not the effing salesman!!!

You're right but there were such a trusted developer and one of the best in UK so you don't think that they would do that. I would not be gutted if they reduce it by £20k but such a massive discount... we really work hard at getting all the money together. We are just working class and working our way up... we are not rich! so £35k is a lot of money to us.

YMoney

john_white wrote: »

So where does the 35k come in to it?
We need additional £35k as the lender would only give £400... went back to developer to see if we can get a further discount and they said no!

If it was valued at 900k I don't see the issue?

i am not sure what the valution were but our mortgage were approve but we only need to borrow half of the value so i though they would value on the borrowing value... not sure how it work.

GDB2222

I am really sorry that you find yourself in this position. In answer to the original question you asked, there is no cheap way out of this contract.

The only possible comeback you have is against the surveyor who valued the property on behalf of your lenders and yourself. He may possibly have overvalued it.

The other remote possibility is that you can re-negotiate the deal with the developers, and they may agree to sell you one of the larger houses for the same money. I think that is a very remote possibility, but you could start to put pressure on them by giving them bad publicity. To be frank, I am quite surprised that you have not named them in this thread.

GDB2222

yasmin_afshur wrote: »

i am not sure what the valution were but our mortgage were approve but we only need to borrow half of the value so i though they would value on the borrowing value... not sure how it work.

did you not see the mortgage valuation report that you paid for? You are entitled to a copy.

YMoney

pinkshoes wrote: »

The developer hasn't gone back on his word. He sold the houses for the highest price he could achieve.

Ultimately, when the valuation came in £35k UNDER the price you'd offered, this should have set alarm bells ringing, so when they wouldn't reduce it further, you should have walked away.

Rather than looking for someone else to blame, accept responsibility, and if you really don't want to live there, put it back on the market immediately, undercut their current price, and take say a £50k loss rather than £100k deposit + costs.

How much was the house??

well we cannot do that as that would be our family home... not easy to move as it is... the valuation did not come under ... it was that the we need a further £35k for the mortgage so we went back to the developer. I am not blaming anyone but just angry that this sort of things can happen. i though by writing to this forum ... i would be able to get advise but it seem that everyone is so negative about it. I need advise not telling off!

john_white

35k is 35k but its done now.

Enjoy the house, you thought it was worth the money and so should be happy you got a house you loved, who cares what the others sell for, your not planning to sell anytime soon so 4/5% varaince won't make much issue in 10/20 years time.

YMoney

john_white wrote: »

So where does the 35k come in to it?

If it was valued at 900k I don't see the issue?

i was rushing when i wrote as i was really upset. The price is £900k and we got a discount of £15k. Valuation come out ok. The first bank offered us less (£35k less) but the interest rate were very good.. we went back to developer to see if we can get a further discount and they told us that was the best discount as we were the first one to offer. They convince us that they will not be giving discount more than £15k. We then had to go to another lender who is willing to give us the addtional £35k but at slightly higher interest rate. Is there anyway i can go back to them and argue my case here!