House Buying Issue: Help required

spit_spot

Hello,

I have a little dilemma which I'd appreciate some experienced heads offering their advice on. I'll try to keep it as short as possible:

My partner and I are first time buyers. We've had an offer accepted on a property that we like. We were made to offer the full asking price, because there were supposedly 2 other offers on the table from separate bidders.
Part of the seller's conditions were also that we get our mortgage company to complete a valuation survey within 5 days and that we complete within 28 days.
Because of these conditions, we spent appx £600 extra on a solicitor who assured us he'd get it completed in time, spent appx £900 extra on our mortgage arrangement fee and an extra £25 pm on our mortgage repayment because this was the only lender who would guarantee a valuation within 5 days.

We got our mortgage and had our valuation carried out 1 day after our offer was accepted, and subsequently got a phone call that afternoon advising that although we have it in writing that the vendors are chain free, they are no longer chain free, because the owner of the property they are purchasing (and were desperate to move into within 28 days) was no longer prepared to move into rented accommodation.

This means we will now be liable to pay stamp duty, because we will not complete before the end of 2009, despite us paying an extra £2500 (appx) to ensure we completed within their timescale.

Having spent this extra cash, we simply don't have the money for stamp duty, so we need to come up with a way to save that money.
I can think of 3 options, which I'd like advice on:

1) We ask them to reduce the purchase price by the cost of stamp duty (and we subsequently take the cost of stamp duty from our deposit).

2) Our vendors complete with us before 2010, and they move into rented accommodation until their new property is ready

3) Our vendors insist that the seller of their new home moves into rented accommodation, as she had apparently said she would do.

Are we being cheeky asking for one of these options to be done? We are renting ourselves at the moment, so we don't mind if it takes us into the new year to complete, but having spent the extra cash to ensure we stick to the vendor's timescale, we just don't have the cash to pay the stamp duty.

What would you do?

Radiantsoul

I would ask your solicitor to write stating that your existing offere is condition on the sale being completed before the stamp duty increases and that if this fails to happen you are going to reduce your offer by the amount of the stamp duty...

kinglewis

Depends how much you want the property really... if there were 2 other parties offering sounds like you have probably got a good deal.

If it was me I would insist that they complete before 2010 or else you will reduce your offer by the cost of the stamp duty. (or ask that they pay it on completion)

They will then have the option to put the house back on the market which is the risk you will take! (I imagine you'd be gutted if you lost it!)

pawpurrs

House buying eh!:rolleyes:
Sounds like your dream buyers, the vendors would be mad to lose you. On the other hand, it also sounds like you really want the house, if you threathen to pull out if they dont reduce or complete when you want, just be prepared that you *could* in theroy and especially if its true about the other two sets of buyers, losr the property and therefore the money you have allready spent, so you need to be prepared for that. Unfortunelty these things happen in chains, people a lot of the time do change their minds, decide not to move in to rented etc..........
Instead of threatning, I would tell the agent what you have said here, about genuinely not being able to afford the stamp on top of the extra expense you have occured due to trying to accomodate the vendors, and that you still want the house, and can anything be worked out, ie one of them move out, and see where that gets you. Its best to try and work things out without using threats if you can, that just gets peoples backs up, then they can get stubborn and tell you to take a hike

spit_spot

pawpurrs wrote: »

House buying eh!:rolleyes:
Sounds like your dream buyers, the vendors would be mad to lose you. On the other hand, it also sounds like you really want the house, if you threathen to pull out if they dont reduce or complete when you want, just be prepared that you *could* in theroy and especially if its true about the other two sets of buyers, losr the property and therefore the money you have allready spent, so you need to be prepared for that. Unfortunelty these things happen in chains, people a lot of the time do change their minds, decide not to move in to rented etc..........
Instead of threatning, I would tell the agent what you have said here, about genuinely not being able to afford the stamp on top of the extra expense you have occured due to trying to accomodate the vendors, and that you still want the house, and can anything be worked out, ie one of them move out, and see where that gets you. Its best to try and work things out without using threats if you can, that just gets peoples backs up, then they can get stubborn and tell you to take a hike

Thanks for the replies so far.

Pawpurrs, I have spoken to the agent and explained that we have incurred extra expense to accommodate the vendors' wishes.
I haven't been threatening, because I think you're right; keeping it all polite is the best way to go.
Hopefully if we can properly communicate to the vendor that we actually have no extra cash left after forking out to accommodate them, then they will agree to move into rented, or agree to lowering the sale price by the cost of stamp duty.
Otherwise, we will be forced to pull out, because we can't afford to pay stamp duty.
I just don't know how well the estate agent can put that message across to them. I'd love to talk to the vendor myself.

pawpurrs

If you dont have their number or dont feel comfortable talking to them on the phone, why not either put a letter through their door or arrange another viewing to speak to them face to face?

spit_spot

pawpurrs wrote: »

If you dont have their number or dont feel comfortable talking to them on the phone, why not either put a letter through their door or arrange another viewing to speak to them face to face?

I'd like to speak with them face-to-face, I just assumed it wasn't the done thing and that it would annoy the estate agent.
Maybe we'll arrange another viewing and speak to them about it then.