Bottom of Chain Pulled Out

matador04

Hi all

We are in the process of moving house and are third in a chain of four. The new house has no upward chain (vendors moving into rented).

We accepted an offer on ours a couple of months ago and were hoping to exchange contracts this week. However, we've just found out our buyer's buyer has pulled out.

Our buyer still wants our house and has asked that we wait until they find another buyer for theirs. Unfortunately we don't have a great deal of time, as we are expecting our second baby in 10 weeks and wanted to be settled in before then.

Anyone else experienced this situation? I'm trying to weigh up my options but don't really know where to start.

Ivana_Tinkle

I'm afraid there's not really a lot to weigh up. The usual thing to do is that everyone starts remarketing their properties. Either the bottom of the chain finds a buyer quickly and then off you all go again or you find a new buyer and start again. Either way, at least one member of the chain is starting from scratch, so trying to do it in less than 10 weeks might be a bit optimistic (although obviously far from impossible).

The only other option is to try and find out why the bottom of the chain pulled out and see if there's anything you can do about it. (eg are they after a price reduction?)

It's possibly worth considering that going through the sale process for a second time can be much more stresful (because you're already stressed before you even start!), and for that reason if nothing else it might be worth putting off the move until after the baby's here, rather than trying to push (no pun intended) everything through at double-quick speed.

hazyjo

Don't forget your new addition might decide to come early!

I'd be tempted to delay too, unless you can handle the stress of worst case scenarios (you giving birth on or around completion/move day). Would you be prepared to leave one house, let your OH deal with the move, and move back into a new house with a new baby? Wouldn't be my choice, but we're all different!

Alternatively, continue with the chain (if the top of the chain will hang on), but make it conditional on exchanging/completing AFTER your baby's born. (Baby also might decide to come 3 weeks late!)

Jx

matador04

Yes, doesn't look like I have much choice.

We really don't want to pull out completely, as the house we want is perfect in every way for us. I'm desperately hoping they will agree to wait for as long as it takes us to resolve this.

I'm the husband, so I'd be the one dealing with the move.

I'm so frustrated that I've even been looking at those 'we buy any house' places (then quickly realised what I was doing).

hazyjo

matador04 wrote: »

I'm so frustrated that I've even been looking at those 'we buy any house' places (then quickly realised what I was doing).

No, you're not that desperate!

Roughly one in three chains collapse (been there, got several tee-shirts), so you're not alone. It's just timing in this instance.

Chances are, if everyone hangs on and your buyers find another buyer (with no chain below them!), it'll take around 10-12 weeks. Say it takes them four weeks to find somewhere, another 10 weeks to complete, your baby will probably be here.

First off, see if the others will hang on. Secondly, keep everyone informed and don't let it drift. Thirdly, make sure everyone's prepared to exchange after the baby arrives (which realistically will be the case anyway).

Yes, it is stressful, but many do it.

Think of it as an adventure, and something you'll be telling people for years to come (including the grandkids!)

Jx

matador04

Just thinking out loud, would there be any feasible way of buying the new house before we exchanged on the sale of ours?

If I had the funds for the full deposit (plus SDLT, solicitor's fees etc) without the need for the equity from our current house, would this work? I imagine there are many other considerations.

JimmyTheWig

matador04 wrote: »

I'm trying to weigh up my options.

Unless you have significant money to spend there aren't many options. (Isn't that always the way!)
* You could go ahead and buy the place you want and sell yours when ready. But that would, generally, mean being able to pay cash for the new place without the money you'll get from your current place.
* Rent somewhere whenever you are ready to move and let the chain complete when ready. Which means paying rent as well as mortgage.

More realistic options...
* Wait for your buyer to get a new buyer. Assuming that the problems were due to their buyer rather than their house then this is going to be the easiest thing for you to do. Your buyer may be prepared to drop their asking price if they are eager not to lose your house.
* Go back on the market. You may be prepared to drop your asking price if you are eager not to lose the house you want.
* Give it up as a bad job. Take the house off the market and reconsider in 6 months time.

JimmyTheWig

matador04 wrote: »

Just thinking out loud, would there be any feasible way of buying the new house before we exchanged on the sale of ours?

If I had the funds for the full deposit (plus SDLT, solicitor's fees etc) without the need for the equity from our current house, would this work? I imagine there are many other considerations.

You wouldn't just need the full deposit. You'd need the full purchase price!

matador04

JimmyTheWig wrote: »

You wouldn't just need the full deposit. You'd need the full purchase price!

How come? Because of two mortgages?

harrys_dad

matador04 wrote: »

How come? Because of two mortgages?

Yes indeed you would need two mortgages, one on the new house and one on your existing house, together with sufficient fuinds for the deposit on the new house and sufficient income to pay both mortgaes until your house sold. The only alternative is to let yours out, provided you can get the agreement of your current lender.

I hope you will not consider any of that, just see if the first rung on the chain might get back on, or start remarketing your house and ask your buyer to remarket theirs too, and hope that your vendor hangs on.

If none of that works out, stay where you are for a bit, there will be other "perfect" houses out there.

JimmyTheWig

matador04 wrote: »

How come? Because of two mortgages?

Yes, unless you have a very large income you will be unable to get a second mortgage without redeeming the first one.