Gazumping !?!?!

tedglen3

Hello all,

We have an offer accepted on a repo. The mortgage is now in place and it has had validation by the abbey. We are now waiting on solicitors.

Just so we are prepared. We had house for £4000 less than asking price. If we are gazumped at this stage, could we put another offer in for £4000 more? Or because the mortgage is in place, will it be revalidated etc to get mortgage for £4000 more.

kingstreet

As its a repossession, offers are publicly invited right up to exchange, so your concern is a possibility.

You can offer as much as you feel it would take to secure the property, even beyond the asking price, although at that level I'd expect a "sealed bids" process to be employed where all parties are asked to make their best final offer in writing.

If you do have to increase, you'd need to ask Abbey for more money and they would ask the surveyor if he feels the property could support the higher purchase price.

The result would depend on the outcome of that request, unless you decide to put more money in from your own pocket and pay more than the surveyor's valuation.

tedglen3

Thanks a lot for your reply

celyn90

Yes, you can get gazumped right the way up to exchange and it doesn't matter how much cash you have laid down - it's happened to us already and we had to come back with quite a bit of extra cash (also a repo). There was some wiggle in the existing mortgage application; so we didn't have to put in a new application, but had it been more than the tolerance it would have meant a new one. You lender should be able to advise you what the variation in your existing application is. If you don't have time/tolerance, you can make the extra up with cash.

Ours is well over the asking price at the moment - we started a few thousand below too; so be prepared for it even if you go up to the asking for it to go beyond it - they often tend to be marketed with rather low asking prices to attract interest. These offers can come in even if you've sorted the mortgage, paid the searches, survey and solicitor so do make sure you have enough free room to move.

best of luck - I'm finding it super nerve racking. cel x

tedglen3

thank you!

Moomum

We ended up £115k over asking price and still were gazumped, most nerve-racking time ever!

kingstreet

natmid wrote: »

We ended up £115k over asking price and still were gazumped, most nerve-racking time ever!

How much? :eek:

Moomum

I know, they had massively undervalued it , I think to get interest. Was on at £515 k and we gave up at £632k, went for £670k in the end. Needed 100k worth of work too! Madness!