Is something fishy going on ... or am I being paranoid?

MoneyBags

Howdy,

My wife and I are in the process of buying a house. A quick background goes like this:

We first viewed the place end of Nov last year and put in a offer (conditional on the basis we completed by the end of Jan) which was accepted. The vendor has dragged their feet pretty much the entire time since. We are now at the beginning of March and have yet to exchange contracts. We completed on the sale of our property in Jan so have been at the inlaws since (:()

A couple of weeks ago we went to go for viewing number 3 and were assured by the vendors that we would be exchanged by the 26th. They are buying an older property and their mortgage company were asking for extra surveys ect done.

Last thursday we were told by the EA that the mortgage company now had all the documentation they needed and a mortgage offer would be faxed over on Friday and we could proceed.

Yesterday (Friday) we called to check if their offer had been recieved. The usual agent we deal with wasn't in the office, so we spoke to someone else. They told us that the offer had been recieved on the 22nd .. but it had a 10k retainer which the vendor was trying to negoiate down with the mortgage company by having some extra specialist surveys done on the property. Clearly we were somewhat confused and alarmed by this... why is the EA and the vendors misleading us on the status of their purchase?

Today I spoke to the usual agent who told me that they haven't received an offer but the retainer was set by the surveyor and they were waiting for an offer from the mortgage company... yadda yadda yadda ... basically trying to fob us off somewhat ... why would the surveyor be setting the retainer? I'm guessing this is a lie. Clearly the mortgage company has set a retainer which they can't afford to proceed with and we are now a bit stuck if they can't negoiate it down?

So anyway ... before this turns into a rant ... what do we do ... they have clearly got an offer? We've been hanging on for ages with this ... do we continue to wait or tell them it now or never? Or cut our losses and move on?

Any advice / suggestions / bitter experience tales etc very much apperciated.

Thanks.

MB

Ps. The continued waiting is only made worse they the fact our cats have been in the cattery since we completed on our sale in Jan x2

HellsGranny

Personally I'd tell the vendors to stick their house, it's gone on too long. They are just keeping you on a string.

You are in an excellent position, having sold your own house.

Look for somewhere else.

Cheers, HG

wodgerdodger

The valuer has clearly indicated to the Lender that there are some essential works needing doing and as not being regarded as sufficient to require witholding the full sum has suggested to the lender can be covered by a retention until completed.

No doubt the vendor is now renegotiating with their sellers for a price reduction on the basis of the works needing doing.

The lender has no knowlege of the property other than as indicated by the valuer.

mortgageslayer

Very fishy! I dont understand some people - honesty all the way is the best policy. At least it stops you thinking about 'worse case scenarios' all the time.

Good luck

G_M

but the retainer was set by the surveyor and they were waiting for an offer from the mortgage company

If you change the word 'set' to 'recommended' this makes perfect sense. The surveyor is the professional employed by the lender to examine the house. On the basis of his professional advice, the lender decides how much to lend and/or retain.

Be that as it may this has dragged on.... and on. Do two things:
1) give the sellers a new deadline to Exchange and tell them that if they miss it you will reduce your offer by £1K. And you will reduce again by £1K for each further week that passes before Exchange. If you feel you must justify this, tell them that a) they originally promised to Exchange by Jan and b) you are having to pay rent (white lie? So what.)
2) mentally tell yourself this purchase will not happen. Start looking again. If the seller gets it together, fine. If not, you're not wasting more time and you're beginning the process of starting again.

RacyRed

It is taking too long. Sounds as if they are saying whatever they feel is required to hang onto a buyer who can pay the price they want and is willing to fit in with their own agenda. Not very fair on you though!

Unless your heart is set on that property, back away and start checking out the new to the market homes. You might be able to find something better that will be available very quickly, try searching the chain free properties?

Wickedkitten

Sounds more like a problem with the Estate Agent than anything, have your solicitor contact their solicitor directly to see what is going on.

rl290

In your situation, I would write to the vendor, via your solicitors, to say that:
1) You are unhappy that the January deadline was not met, and have since had to live in very inconvenient conditions as you have sold your house.
2) The lack of communication especially the conflicting information from the agent, has meant that you are losing confidence in their ability to exchange.
3) You are giving them x days (2 weeks?) to exchange. After that time, you will deduct a set amount from your offer every week they are late
4) If you don't hear back from them within a week, you will begin to view other properties, and are in a strong position to put offers in and complete quickly.

See what they say.

R

not_loaded

If a £10k retainer breaks them, maybe you should move on.

Reduce your offer by £2k right now for compensation.

You’ve been way too helpful!

Blacksheep1979

tell them that you want to exchange/complete on date X and that for every week that it goes beyond that you drop your price £5k. As others have said, you're in an excellent position to look at other properties if needs be and by the sounds of things that may be the quicker option.

Trollfever

As above.

Play hardball.


.