Buyers Havent Got Enough Money

teapot_3

help please anyone! Was expecting to exchange yesterday and got phonecall from EA saying buyers need £3500 before they can exchange to pay for some bills. They thought this had been included within their mortgage amount but its possible the mortgage broker messed up. However he says not. Its been suggested they borrow from relations/friends etc but they say its not possible. I dont want to lose the place I'm buying. Should I get EA to see if others in the chain can help out, fork out myself or say no and put mine back on market?
My solicitors say they should probably re apply for a loan to include these costs but this will add on loads more time and theres no guarantee they will get an offer as they have already had problems.

Has anyone else experienced this and what did you do. Would appreciate any advice as I'm gutted and really pi***d off!!!
Many thanks

michsmit

My Brother was in a similar situation, he had to pay out £1000 to someone lower down the chain who claimed "they couldn't afford the house". You have to weigh up the costs involved if they withdrew from the chain. In my Brother's case it was worth the £1k to keep the thing moving. A difficult situation and hope it works out for you.

[Deleted User]

A similar thing happened to some friends who were selling and just before exchange as well. The buyers wanted the sellers to reduce the price by 10k and they gave a similar excuse

It does sound like a try-on and they are possibly hoping that you will be the ones to reduce the price

You poor things, as if it wasn`t stressful enough!!

silvercar

We accepted a lower deposit from our buyers because they had a temporary problem which was sorted before completion. If these buyers could secure other funding before completion this is an option.

Two other options:

1) As many people in the chain will have to chip in by reducing their prices to accomadate these people. Some people won't be able to afford to do it and otherwise may well be unwilling to let someone get their house cheaper and rewarded for screwing up.

2) If there is someone who can afford it, they could bail them out and take a charge on the property for repayment.

mrcow

teapot wrote:

buyers need £3500 before they can exchange to pay for some bills.

That sounds worryingly vague..........are these "bills" actually anything to do with the house purchase do you know, or just some arbitrary bills (eg. credit cards?) that they just fancy getting some help with and thought they'd hold you over a barrel for?

(Sorry to be so suspicious it's how I work )

annie-c

Sorry to hear about this... as others have said - you need to have a clear head now and weigh up the costs/risks.

The sad thing about the British house selling rules is that this can happen - nothing is binding until contracts are exchanged, aby which time both sides have ploughed money into the house buying/selling process.

Technically, they don't have enough money so they shouldn't get the house. They would get short shrift at Sainsbury's if they got thier goods through the checkout and packed into bags to take home before the 'realised' that they didn't have enough money to pay! But in the world of housebuying, we are where we are.

Given that you have already invested money into surveys/search fees etc on your next property you might decide to accept a lower offer from them to go ahead with the purchase - but it is entirely up to you.

Another thing to consider is how much time you can stall on the completion of your new property. If they wanted to and had no other option, they could probably get a loan within a couiple of weeks. If they have credit problems then most likely they'd have to get it at a higher rate, that's all. The question is whether they want to. I take it they are hoping you'll simply drop the price?

I remember once on a Location Location Location episode where the buyers offered below the asking price and the vendors agreed that they would accept the lower offer, IF they could secure a reduction in the house they themselves were buying - and they did! But that all took place at the time of making the initail offer not on exchange day!. Might be worth a try though.

AMILLIONDOLLARS

Begs the question, will they have enough money to pay their Solicitors?

I would try and find out what these bills are and secondly I would insist that a charge be put on the property to recover the costs, I sure that this would concentrate their minds, £3,500 is a lot to possibly drop.

Personally, I think they are trying it on, suggest the charge and see you what happens, they've also got a lot to lose if you pull out instead!!

clutton_2

""and find out what these bills are and secondly I would insist that a charge be put on the property to recover the costs"

absolutely !!

teapot_3

Thanks everyone who has replied. Your advice has been very useful.

Apparently the "billls" are the morgage brokers fees which were taken out of the money required for the deposit. As far as they were aware the mortgage amount should have covered both. The others in the chain have been asked to contribute and they are willing to do so in order to speed things up as I am.

Theres stil some confusion though on my part as she needs the money paid direct to her solicitors bank account before exchange so that exchange can then take place.

Need to speak to my solicitors now to see how this can be actioned . Silvercar, I might try your option of accepting a lower deposit.

Thanks again folks for your input.

All very nerve racking now as I want my new house!!!! Now I know why this house moving lark is one of the most stressfull things!!!