Reducing offer price at last minute before exchange

penguine

bdl1brick wrote: »

You can add value to it by refurbishing inside and a lease extension which should cost more like £5k on that value of place not £13.5k.

I'm guessing the cost of the lease extension is £3500 and the marriage value is £10,000 (as the property is valued at £170k without the lease extension and £190k with).

penguine

purplebuzz wrote: »

I think that you are silly to give it up now, at this late stage, and after all the hard work getting to this point.

I say ring them back and ask them to consider 178k and hope that they don't say no out of principle

So the OP should pay £178k for the property which would be worth £190k with a lease extension that's going to cost him £13.5k?

Paying over the odds in this market doesn't sound sensible.

RabbitMad

I knocked the price on my 1st property very late in the day. I had been offered an almost identical house (the one I was renting) for £10k less than (over 10%) I'd agreed to pay for the one I was buying. I think I asked for £5k off.

I told the agent who phoned me back and said the vendor was having none of it and if I didn't agree to exchange that day it was to go back on the market. I told her to put it back on the market then and explained my rational. I then went off to lunch and wondered how I was going to break it to my OH what I'd done.

Apparently the agent phoned back rather panicy whilst I was out asking me to call them urgently - this message never got through to me and it was a couple of hours later before they phoned again. The vendors had apparently agreed to a £3k reduction if i exchanged the next day. I had no deposit to hand (was having to sell some shares and hadn't got round to it) so I had to get an OD set up there and then to do this.

I think the OP was right to knock the price - whether going ahead at £178 is good for them or not I only they know but if they do knocking the price has paid for the stamp duty

bdl1brick

It's not worth worrying about the lease extension yet as it will slow up the whole transaction and is not necessary. I would leave it until you have been in the place for 2 years and have the cash available. The £5k rough guide is based on independant valuation of the lease extension for a similar property I own.

bandofbrothers

mike5678 wrote: »

I am however considering taking it at £178k today still, as bdl1brick said above, there is nothing else in that locality for that sort of money for the same sort of thing. Also considering that I already have a friend lined up willing to pay £500 per month to live with me I should make the jump while I can, I'm going to be there for at least 4 years.

They will be able to sell it at £180k without too much difficulty I don't think. Decisions decisions.

Hmmmmmm

The game is afoot Watson !

Grovester_2

penguine wrote: »

So the OP should pay £178k for the property which would be worth £190k with a lease extension that's going to cost him £13.5k?

Paying over the odds in this market doesn't sound sensible.

Given that valuations and costs are estimated ...

178k +13.5k = 191.5k
Value of property 190k
Difference 1.5k

If the buyer walks away now it'll cost them nearly that in surveys/applications/solicitors fee's for another purchase.

I'd say the sellers have done the maths. Total cost =193.5k (incl lease ext.), value of property from their survey is 190k so the difference is 3.5k split that in half, 1.75k, which is what they reduced the price by.

dfh

Nothing ventured,nothing gained.Whatever the outcome the OP will have saved himself some money.

dfh

Mike this thread is getting more and more interesting.Please keep us posted.

bristol_pilot

How much did that house you haven't bought cost you mike?

mike5678

bristol_pilot wrote: »

How much did that house you haven't bought cost you mike?

We've dealt at £178k

Saved myself £2000 with one phone call. :beer:

Anyway, I based my decision on the fact that there is nothing else on the market for similar money in the locality. I also have a fixed rate mortgage for three years and I can manage the repayments. If I was to wait for another year, my friend may have moved on by then and I would have to find a stranger to lodge with me (I don't NEED a lodger, I just would in order to overpay the mortgage).

I will be in the place for a good few years, probably until I find myself a woman (which could be a while!). It meets all of my needs, I can get to work easily from there, I can get to central London nightlife easily, I can walk into Watford town centre for nightlife easily.

Everyone has to have living costs so I jumped on board and we'll see how it goes, if I've paid a few grand more than some would say is wise, I got bored of thinking about it and just did it, I want to move out of my parents home, I can start to have fun now as I have enough disposable income to live here comfortably and no parents to disturb. I don't need to worry about prices falling over the next few years as I won't be going anywhere, plus you have to consider what is the cost of another year living with mum and dad, is that worth it?

To all the very moral people in here, I will think of you when I am spending my extra £2000 :rotfl: