Vendor agreed to reduce price - Q's

leedom

Hi all.

Due to some remedial works required to bring the house up to standard, the vendor has kindly agreed to reduce the price.

I have a mortgage offer in place from Abbey but have recently started an application with my bank (Natwest) as they have a better 2 yr fixed deal than the Abbey.

Now while the reduction is good it doesn't help with my funding of the works only in my depsoit being slightly reduced (10%) so only £400.

I take it that I have to inform the conveyancer and mortgage lender of this reduced price rather than being able to leave it as it is and put an agreement in place for the vendor to pay me after completion?

It doesn't sound right but thought I would ask!

Dave_the_Ginger_Cat

Yes, afraid you do

Another way to go about it is to arrange for the vendor to carry out the works before completion.

kingstreet

You need to inform both lenders and your solicitor the price has reduced. Just hope the NatWest surveyor doesn't come up with something else, or you could end up having to negotiate yet another price change and that's likely to not be well received by the vendor.

leedom

kingstreet wrote: »

You need to inform both lenders and your solicitor the price has reduced. Just hope the NatWest surveyor doesn't come up with something else, or you could end up having to negotiate yet another price change and that's likely to not be well received by the vendor.

Good point but the MVS from Abbey didn't actually have any issues with it and did not ask for retention or any works to be completed.

The issue was highlighted by our surveyor and we asked the question about reducing the price and they have agreed. However, another MVS may bring some other things to the table as you say!

thanks