About to exchange; buyer doesn't have the deposit

HappySeagull

Aaaargh!

Thought we'd cleared all the hurdles, and were ready to exchange on our sale and purchase. Now our buyer doesn't have the deposit for his 90% mortgage - he had the money, but a family emergency means he is now £15k short.

Crazy thing is, we have the money but don't seem to be able to bridge the gap. Even if we drop the price by £15k, that would only reduce the required deposit by £1500. And, apparently, we're not allowed to "loan" him the money either, even though he will have other funds available in a year.

So, it looks like we're back to square one with the sale, and are desperate to save the purchase. Any ideas on how to "help" our buyer??!!

967stuart

I 100% would NOT lend this person money.
If they really want the house, THEY will find the money.

Get them to speak to their bank and sort out a loan or something.

steampowered

I could be wrong but I don't see why it would be impossible to lend him the money?

Of course, you would need a proper legal agreement drafted by a decent solicitor. And there is no guarantee he would repay on time.

martinsurrey

steampowered wrote: »

I could be wrong but I don't see why it would be impossible to lend him the money?

Of course, you would need a proper legal agreement drafted by a decent solicitor. And there is no guarantee he would repay on time.

because the mortgage company would run a mile, as the OP would have a beneficial interest in the house, and the buyer would not have a 10% deposit...

I would be on the phone to my estate agent getting viewings lined up for weekend

shop-to-drop

What family emergency was worth giving up £15k of their deposit needed for an impending house purchase?

Niv

shop-to-drop wrote: »

What family emergency was worth giving up £15k of their deposit needed for an impending house purchase?

Holiday and/or new car? ;-P

HappySeagull

I don't fully understand it, but my EA tells me there are regulations about paying the buyer's deposit. Our vendor's EA seems a bit more on the ball, so I'm hoping he will come up with something.

Apparently, they can't afford extra monthly loan repayments, but surely they could get some sort of bridging loan until the funds are available next year?

To be honest, I wouldn't mind (too much!) losing the £15k if it enables us to move. What I really don't want is to lose the £15k AND the move. I trusted the buyer until this, but any deal would need to be above board.

HappySeagull

shop-to-drop wrote: »

What family emergency was worth giving up £15k of their deposit needed for an impending house purchase?

Goodness knows, especially as they have a child of their own, a baby due next week, and an expiring rental agreement!

HappySeagull

martinsurrey wrote: »

I would be on the phone to my estate agent getting viewings lined up for weekend

I think we'll be starting again in the morning, regardless of what else happens today. :sad:

LondonDreamer

shop-to-drop wrote: »

What family emergency was worth giving up £15k of their deposit needed for an impending house purchase?

This was my first thought too. Even if I had a genuine emergency with my relatives abroad and had to fly there at short notice, I can't think of any way I'd have to spend 15k. And if so, there's always the credit card for that. I wouldn't touch my house deposit no matter the "emergency" (ETA: I'm not even ready to purchase, yet alone days from exchange) so it seems very strange.

OP, sorry but I think you're going to have to find a new buyer.

steampowered

This is really a question you need to be asking a solicitor, not the estate agents.

martinsurrey wrote: »

because the mortgage company would run a mile, as the OP would have a beneficial interest in the house, and the buyer would not have a 10% deposit...

I would be on the phone to my estate agent getting viewings lined up for weekend

An unsecured loan would not give op a beneficial interest in the house.

But entirely agree I would be phoning the estate agent.