Being messed around by supposed cash buyer

bahamas_1350

Hi
We accepted an offer on our house three weeks ago from a cash buyer.

The house is still being marketed by the agents, as she is 30k short of the asking price.

Today it has come to light after my husband going mad at the agent at the length of time she was taking to prove she has this money that she is trying to do a home revision ie equity release on our house, that she hasn't yet bought.

Our solicitor has said she can not do this. But we are waiting to hear more in the morning.

Does anyone know if this can be done?

Many thanks

mrginge

No it can't.
Keep actively marketing your property as this one is a non-starter.

bahamas_1350

Thanks, as we thought. Our estate agent has dragged this out insisting even today, that it can be done and she is still a cash buyer.

:mad:

mrginge

Ah the golden rule of house buying/selling applies here.

Never believe an estate agent.

moneyistooshorttomention

"Equity release" on your home and she doesn't even own it yet:eek::eek::eek:

I've never even heard of such an idea. Equity release on a home you do own is one thing, but she hasn't even got her little mitts on the house yet and is already trying to get at the equity tied up in it.

Feels BAD...very bad.

Drop like hot cake.

Goodness only knows how many "bright spark" ideas this one is likely to try and come up with to "use" other peoples money and she might think up other wheezes before she's through.

"Don't do it Di" to quote a phrase.

sleepymans

bahamas_1350 wrote: »

Hi
We accepted an offer on our house three weeks ago from a cash buyer.

The house is still being marketed by the agents, as she is 30k short of the asking price.

Today it has come to light after my husband going mad at the agent at the length of time she was taking to prove she has this money that she is trying to do a home revision ie equity release on our house, that she hasn't yet bought.

Our solicitor has said she can not do this. But we are waiting to hear more in the morning.

Does anyone know if this can be done?

Many thanks

If your buyer is "older" they would probably be able to arrange this via a "Lifetime Mortgage" rather than the usual Equity Release process.
To put your mind at rest that she is a serious buyer you could request the valuation survey be carried out asap. Perhaps your EA could enquire who the mortgage application is with??


I wouldn't dismiss this buyer yet!

anselld

sleepymans wrote: »

If your buyer is "older" they would probably be able to arrange this via a "Lifetime Mortgage" rather than the usual Equity Release process.
To put your mind at rest that she is a serious buyer you could request the valuation survey be carried out asap. Perhaps your EA could enquire who the mortgage application is with??


I wouldn't dismiss this buyer yet!

All fair enough, but that scenario would hardly be deemed "cash buyer".

Ozzuk

Um, 'equity release' on a property you are buying, maybe I'm being stupid but isn't that more commonly known as a 'mortgage'?

I suggest you go throw things at the estate agent, tell them not to be so silly and forget about this crazy person...

Ah - didn't think of the 'older' angle, still seems very, very odd!

harrys_dad

If they are a "cash buyer" why on earth would they then want to release equity, as it seems this is the same money they just put in?

sleepymans

anselld wrote: »

All fair enough, but that scenario would hardly be deemed "cash buyer".

True enough...this buyer isn't what the market normally describes as "cash buyer"but at the point of completion, all funds from whatever source, is cash to the seller.


The term "cash buyer" is very very often a red herring which makes vendors eyes glaze over:)


If the buyer is only £30k short of the full cash price it doesn't mean they cant quickly and easily bridge the gap with a Lifetime Mortgage.


It might be quicker and easier for the vendor to sell to the next buyer....but maybe not....I wonder if the OP feels its necessary to find a cash buyer for some unstated reason.

sleepymans

Ozzuk wrote: »

Um, 'equity release' on a property you are buying, maybe I'm being stupid but isn't that more commonly known as a 'mortgage'?

I suggest you go throw things at the estate agent, tell them not to be so silly and forget about this crazy person...

Ah - didn't think of the 'older' angle, still seems very, very odd!

A Lifetime Mortgage is different to Equity Release but most ordinary folk wouldn't be aware of the details and could confuse the 2.


I think the current (traditional) mortgage affordability beginning to stifle some transactions there will inevitably be an increase in alternative methods of funding.