Pulling out after contracts exchanged?

Swifty000

Hi,

My partner and I have recently exchanged contracts (about 2 weeks ago) on a new build property and have handed over a 5 percent deposit. The house hasn't been started yet and the completion date has been set for a few months time.

Since completing, my partner has had a change of heart and we have split up and I dont know where I stand or who I should be talking to. I have a number of concerns:

1. Would I be able to still get my mortgage on my own, or would I need to re-apply for this (i'm not sure if I would be accepted on my own?)
2. If I decided to pull out of buying the house - would this be possible or would I lose out on the deposit that I have paid over?

Thanks

ognum

Have you actually exchanged contracts or just paid a deposit? The answer will differ.

If you have actually exchanged contracts then you have no real choice than to continue or forfeit your deposit and quite a lot more. If both you and your ex partner signed the contract then you are jointly liable to complete on the property.

If you have just given a deposit then the likelyhood is you will have to forgo it, maybe you could speak nicely to the builder and if they can resell the property easily you may get some money back.

I hope it is the latter and you are not bound to buy the whole property!

Muscle750

I don't get this have you got a house to sell ? I don't see how you can exchange contracts if you don't I think you paid a deposit if you don't buy it your going to loose it.
Maybe so you both don't loose carry on buy it sell it repay the mortgage possibly with a ERC then if there's any surplus split it and you turn left and he turns right
Hope you manage to sort it I would talk first to the builder etc

ViolaLass

Muscle750 wrote: »

I don't get this have you got a house to sell ? I don't see how you can exchange contracts if you don't I think you paid a deposit if you don't buy it your going to loose it.
Maybe so you both don't loose carry on buy it sell it repay the mortgage possibly with a ERC then if there's any surplus split it and you turn left and he turns right
Hope you manage to sort it I would talk first to the builder etc

The exchanging of contracts has nothing to do with whether the buyer has a house to sell.

Annisele

Swifty000 wrote: »

My partner and I have recently exchanged contracts (about 2 weeks ago) on a new build property and have handed over a 5 percent deposit. The house hasn't been started yet and the completion date has been set for a few months time.

Since completing, my partner has had a change of heart and we have split up and I dont know where I stand or who I should be talking to.

Your terminology is a little confused. I'm sorry to be pedantic, but exchanging contracts and completing are very different things. You can't have completed if the house hasn't been built - but hopefully you haven't exchanged either.

The person you should be speaking to about this is your solicitor.

I have a number of concerns:
1. Would I be able to still get my mortgage on my own, or would I need to re-apply for this (i'm not sure if I would be accepted on my own?)

If your mortgage offer is in joint names, then you'd need a new mortgage offer to buy on your own. So yes, you'd need to reapply.

2. If I decided to pull out of buying the house - would this be possible or would I lose out on the deposit that I have paid over?

Depends on whether you've exchanged.

If you have exchanged, you might end up losing substantially more than the deposit you've paid. In that case, you might be best off trying to sell the house to somebody else - effectively getting them to 'stand in your shoes' and buy the house. That may or may not be possible - talk to your solicitor.

If you haven't exchanged, you still might lose the deposit. Again, talk to your solicitor.

PasturesNew

If exchanged:
1. You'd need an entirely fresh/new mortgage, from scratch almost.
2. You'd potentially lose more than that - they'd then put the house back on the market and you'd end up liable for any extra costs they incur, including any low price they sell it for. e.g. if the house you were buying is £200k and you've put down £10k, you don't lose £10k ..... they might bang you for, say, £5k remarketing costs, then sell it for £150k and want (£200k - £10k - £150k = £40k).

G_M

As others have said.

However, to add another possible dimension... if you have indeed Exchanged Contracts, and since you speak of a joint mortgage, your partner is equally liable for the contract as you.

As pointed out, failure to Complete following Exchange can result in far more costs than just the deposit paid - but these will be incurred by you BOTH.

Who piad the the deposit? You? Or both of you?

Since you both have legal responsibility, and you both have much to lose, you may be best Completing as planned, in both your names, and then selling.

This assumes you can manage to speak to each other of course....

Frankly your partner seems like a nightmare: we all have doubts about relationships, and sometimes/often we realise a relationship is wrong and we break up.

But to be sufficiently commited to the relationship to Exchange Contracts on a property one week, and break up the next......!! :eek:

You have my sympathies.

grifferz

If you really have exchanged, maybe you want to read Welshwoofs' epic saga:

https://forums.moneysavingexpert.com/discussion/1806123

paddedjohn

G_M wrote: »

As others have said.

However, to add another possible dimension... if you have indeed Exchanged Contracts, and since you speak of a joint mortgage, your partner is equally liable for the contract as you.

As pointed out, failure to Complete following Exchange can result in far more costs than just the deposit paid - but these will be incurred by you BOTH.

Who piad the the deposit? You? Or both of you?

Since you both have legal responsibility, and you both have much to lose, you may be best Completing as planned, in both your names, and then selling.

This assumes you can manage to speak to each other of course....

Frankly your partner seems like a nightmare: we all have doubts about relationships, and sometimes/often we realise a relationship is wrong and we break up.

But to be sufficiently commited to the relationship to Exchange Contracts on a property one week, and break up the next......!! :eek:

You have my sympathies.

How do you deduce that from the OP? for all you or we know it may be the OP's fault the relationship broke down.