Urgent help - deadline 3pm Wed

ProtectingMyFamily

MSE’s I am writing under a different name, as I believe the EAs are monitoring, so am generalising the amounts so they can’t use the info to identify.

Situ: - Unfortunately dad is being a stubborn butttt and is believing this property is the house of his dreams to live in before going into a retirement home. It has local amenities (shops, leisure activities), character, fab transport routes to son even though I am over 20miles away by bus. I can NOT persuade him to give this property up. EEK free will etc

This is what they are offering him :P

• EA is ‘demanding’ £5k as a non-refundable deposit for a property under £200k ?
• Using EAs FA (fees under £350) and the M’s they recommend (x2 of them) – payable whether successful or not (PM me for more info)
• Use their Solicitors – no exact fees
• Use their Surveyors – no exact fees
• No confirmed info on who the deposit is ‘rewarded’ to if the finance doesn’t work out
• They appear not to trust their OWN FA, as they want this £5k - despite she having confirmed (and willing to do so) info about finances to pay for the Ms - guaranteed with annuties
• Since seeing this house he has always wanted this house, and has drastically reduced house by 1/5 for a quick sale
• EA telling sellers – who knows the truth??
• Research on the EAs = DON’T FK USE THEM – 1.5 / 5, 1.8.5 are the research polls

I think can you can now begin to understand my stress situ – so my problem is damage limitation.

I shall be meeting the EAs / FA with Dad really soon (as long as the boss is okay with this), so here are the questions:-

• Any ideas / negotiation suggestions - anything would help
• Is there any legislation that this come under

I am trying to protect him, as I know he wld do the same to me even - especially when they are blinded. My sis thinks I am being daft. To me this sounds like blooming emotional blackmail as they know he loves the hosue!!!

I have until 3pm TODAY. So any constructive info wld be really, really welcome.

PMF

Edit - PS I have been told, that what ever I try and do, I can not prevent the sale going ahead, its wanted that much = they see him being desparte

Bananabelly

I don't quite understand your post, but it seems that your Dad wants to buy a house he loves and the EA are being a bit overbearing. The things that stand out to me are:
-You don't have to use their surveyor/solicitor/financial advisor, no matter what they say (and they legally have to pass on an offer made whatever happens with those things)
-A 5K deposit is very unusual. If as you say it is 'non-refundable' I would think it will be 'rewarded' to the EA/vendor? But unless this is part of the deal for some very specific reason I can't see it being legal unless it is associated with exchange of contracts.
-I assumed M's were mortgages but your Dad is getting 2? Payable whether or not he gets the house? Do you mean they have recommended 2 mortgage products and the 350 pounds in fees are payable? Have a look on this website for Martins guide to Mortgage Brokers, many get commission from the bank and don't charge fees.
-Who told you you couldn't stop the sale? Your family or the EA?

I am sure others will offer better advice. However, the biggest thing that stands out is your Dad is an adult and has managed independently all this time, brought up a family, etc. He can probably handle a house sale on his own, even if you feel he is making a mistake. It is his mistake(s) to make. Maybe the money is less important to him than the house of his dreams.

ProtectingMyFamily

Hi Ban thanks for posting.

The urgency is this - the sellers are 'concerned' towards Dad's intentions about buying the house. So the EAs are using their concerns, to get him to use their 'other' services. If he doesn't, they will not recommend that the sellers go with him, and to go with the 8% lower offer thats also on the table.

The £5k - "its the increasing trend for up here" unquote.

There will be 2 Ms, 1 as a buy to let, and 1 as remortgage - all very financiall risky, but this is HIS dream home.

To use their FA's services, its £350 fixed.

If these M's fail, he will loose £5k and £350, and any other associated costs from solicitors, surveyors etc. From the reviews of other buyers of this EA, I highly suspect that costs will get higher and higher.

It maybe the hosue of his dreams, but it is majorily affecting his M health, so much professionals are being visited.

PTF

pinkteapot

We had this to a lesser extent when buying - the EA said they wouldn't take the house off the market until our mortgage application had been approved, unless we used their mortgage broker in which case it could come off as soon as we spoke to him.

They try every dirty trick in the book to get you to use their services (mortgage, solicitor etc). You are under absolutely no obligation to do so. Your father needs to stand firm with them. If he is vulnerable then you or another family member should speak to them on his behalf.

I have never heard of a non-refundable deposit on a property. That seems utterly, utterly ludicrous. Are you in England or Scotland? If England, the sellers could pull out right up until exchange with no penalty; why on earth would anyone hand over thousands on a non-refundable basis?

I am thoroughly confused about the mortgage situation. Are you saying he'll have two mortgages on the property; a BTL and a residential? I'm not sure you can do that... If he has a BTL mortgage on a different property that's a different matter. Suggest you outline the mortgage situation more clearly on the mortgages board for advice on the financial side of it.

Going back to the EA, he needs to say "My offer for the house is £x. I will be arranging my own mortgage and solicitor." However, until he has a buyer for his house he's not a proceedable buyer anyway. The sellers will keep the house on the market and consider other offers until he has a buyer lined up.

Also, what happens at 3pm today? Why is there a deadline?

bryanb

Check which professional organisation the EA belongs to, contact them for advice.

ProtectingMyFamily

Hi PTP

His property is not sold at this moment in time, but there does seem to be a beginnig of a bidding 'war' starting, and this has been created by the massive drop in price. Hopefully one of these will be processed through. The mortgages will be based on the old property, and his annutities will pay for the interest payments until its sold / end of period so not to pay the ERCs. This property has been let out for over 3 years, so has the evidence to provide for a B2L.

It is Dad saying that he will not walk out of their office without that property.

We are in England - oops should have said.

The Sellers are making a final decision today.

pinkteapot

Ok, that makes a bit more sense now. Does he just own one property currently, which is let out? I am confused that he is slashing the price and has buyers interested now, but that he plans to pay the mortgage for some time to come.

He really, really shouldn't hand over £5k. Who gets it if he backs out of the purchase? What happens if the sellers pull out before exchange - there is no way he should lose it in this instance!! To lose that much if his mortgage application is turned down is also frankly outrageous. Applications take 2-3 weeks. It's hardly going to hold the sellers up for long, is it? I have never heard of this before and wouldn't dream of paying it myself. Have you spoken to other EAs in your area to see if this is "the norm"? After this is all over, tell us where it is so we can all avoid moving there.

Evilm

The EAs have no right at all to ask him to place down £5k non refundable. The only right to request a non refundable deposit is upon exchange and that stays with the solicitors until completion.

Report them to the governing body for EA's and do not use their FA or chosen solicitors.

steve1980

1: Estate agents are not allowed to take a non refundable deposit. This would have to be done by the solicitors

2: You DO NOT have to use any of the services that are offered by the agent.

3: If there is a property that needs to be sold before he can proceed then he can't buy it anyway.

betmunch

They are definately playing on his desire to own this house.

unfortunately you have to let him make his own mistakes, as someon pointed out he is an adult.

the whole thing sounds well dodgy to me and I suspect your Dad will wake up one day with no nice new house and £5350 missing from his bank account.

I would warn him, then let him make his decision

ProtectingMyFamily

Thanks for all the responses

The loans are to cover the period until the house is sold.

Will definitley get them to clarify its NOT a non-refundable deposit.

And yes very dogy, will certainly report them - after the house is his.

Will let you know tomorrow what the update is.
PMF