Advice please...

Annoyedwithsellers

Hi all

I'm new to this forum but was just after a bit of advice. Basically we had an offer accepted on a property and on day of exchange our sellers decided they wanted a further £6k as 'house prices have gone up' bearing in mind they only accepted our offer 8 weeks ago, we decided that we liked the house enough to pay the extra.

However, this isn't as easy as we thought. After finally getting hold of our mortgage company today, we were advised that the likelihood is they'll need to re-value the property before they can change the sale price (I should say that we are not going to be adding the £6k to the mortgage and are using savings).

My question is really around timescales. We exchanged on our current house last week with a completion date of 11th April and I'm just a bit concerned as to whether the re-valuation, re-issuing of the certificate of title and getting this to the solicitors in time for exchange of contracts and drawing down the mortgage (which takes 5 working days) is likely to happen by 11th April. Annoyingly the sellers (executors) are pushing for exchange ASAP - bearing in mind they changed the goal posts last minute!!

Sorry for the long post but hoping someone can offer advice.

Thanks

ACG

Tell the sellers they can wait, its their fault there is a delay or they can accept what was agreed and complete sooner.

As for the rest of it, there should be no need to revalue the property if you are paying the difference, who is the lender? Did you go through a broker?

Annoyedwithsellers

Thanks for your reply. We didn't use a broker and nationwide are our mortgage company. Apparently, as we applied through a branch any changes have to be put forward by the branch (due to different systems) and of course, the one and only mortgage consultant in the branch we used is on leave!

The executors are being very unreasonable I think, not only are they pushing, they basically told us (through solicitors) that unless we paid the £6k they'd pull out and put the house back on the market at a higher price! On one hand they say they aren't worried about how long this will take and on the other they want us to exchange ASAP! I think it all comes down to greed!

ACG

Forget them pushing you, if they pull out they have to go through the whole process again, they are then talking around 2 months before they get their money.

I would tell them it will take as long as it takes, you want to complete asap too, them pressuring you will not speed anything up. Its their own fault so FO (i will let you guess what that stands for) and leave you alone whilst you get on with it.

This could also potentially be the estate agents pressuring you so they get their commission sooner.

I have only used nationwide twice and once was about 2 years ago, i dont know their systems too well.

Annoyedwithsellers

Thank you - that's put my mind at rest! I had the same opinion but when you know they hold all the cards, it can play on your mind a bit! We will have to wait until early next week to see if the house needs to be re-valued - the chap I spoke to today seemed to think it may be possible for the original valuer to just 'up' their original offer instead of actually re-valuing. Fingers crossed!

Thanks again

Thrugelmir

Annoyedwithsellers wrote: »

On one hand they say they aren't worried about how long this will take and on the other they want us to exchange ASAP!

So bluff . Pretend not to be concerned. Don't be bullied. I wouldn't be surprised if they don't start panicking if you act more hard nosed.

ACG

It does not matter what the valuer does on the property - you have said you are putting the remainder in yourself. If anything the loan is remaining the same but the LTV is reducing.

The only thing that needs to be changed is the purchase price and then re-issued probably not a 2 minute job with nationwide but i dont see why the valuer needs to be contacted at all.

GMS

Annoyedwithsellers wrote: »

but when you know they hold all the cards, it can play on your mind a bit!

You could argue the cards are held by you. If you pull out now they have to start again. No guarantee of a new buyer quickly?

Good luck

GMS

ACG wrote: »

It does not matter what the valuer does on the property - you have said you are putting the remainder in yourself. If anything the loan is remaining the same but the LTV is reducing.

The only thing that needs to be changed is the purchase price and then re-issued probably not a 2 minute job with nationwide but i dont see why the valuer needs to be contacted at all.

Valuer would have to amend the valuation to reflect the higher purchase price or the LTV will remain as the lower of the purchase price or valuation will apply.

Change of purchase price should take them 2 minutes but knowing Nationwide it will involve all kinds of unnecessary things!

ACG

GMS wrote: »

Valuer would have to amend the valuation to reflect the higher purchase price or the LTV will remain as the lower of the purchase price or valuation will apply.

My point exactly. If the OP is putting the extra £6k to the purchase price then then the lender is not lending any additional money to what has been offered already.

GMS

ACG wrote: »

My point exactly. If the OP is putting the extra £6k to the purchase price then then the lender is not lending any additional money to what has been offered already.

The LTV won't reduce unless the valuer increases the value. The lower of the pp or val will be used so in this case it will be the original valuation if the valuer doesn't increase it.