Move from hell, purchasers failed to complete HELP!

Jhoney_2 · 15 January 2015 at 3:07PM

dktreesea wrote: »

Why the FTBs? they're not going to need a bridging loan. They're the first in the chan, and have nothing to sell. But it would at least put some pressure on them to act responsibly and not hold up the chain.

So say the seller, so second in the chain, needs to rely on bridging finance to complete his own purchase. The cost of this, assuming the FTB is the one delaying proceedings, falls to the FTB. All that would happen is if the FTB couldn't complete at all they would forfeit their deposit, in this case to the seller above them. If they could complete but were delayed, they would have to find whatever is now due to their seller, i.e. the costs of his bridging finance, typically 0.6% a month or thereabouts, in order to complete.

All of this, costs due to the seller if they fail to complete, and costs due from the seller to the buyer if the seller fails to complete on time, should be stipulated in the contract. Instead in Britain it all sounds very airy fairy, and you have to sue down the chain to cover your "reasonable expenses".

No wonder so many people pay over the odds here to buy a brand new home or to buy land and build on it.

Not necessarily does being first in the chain make you a FTB. Further, in the event that a vendor (e.g property 2) doesn't sell, they would still incur costs for accrued interest on their loan, possibly accommodation/business costs and legals fees and be entitled to compensation.

What about scenarios where the bottom of the chain is not the where the delay is? A different system would have to look at all these factors too and your example does not perform well in those circumstances.

My point though, was that this has been a dreadful experience to read as someone who is not a FTB and I think it would be more difficult a situation emotionally and financially to have been in if that were the case.

House buying is a choice, if/when someone chooses one of the options available, you take the rules too. They all have them.

Jhoney_2 · 15 January 2015 at 3:31PM

@ dktreesea

You seem to be arguing against what IS in the contract -
" I find it amazing in Britain that someone who is trying to buy or sell a house has to be concerned about the actions of someone who could potentially be 5 or 6 sales away from themselves. Someone neither they, nor their buyer, much less the person selling to them, has any contractual relationship with"

And arguing in favour of what isn't in it?

"Why should the vendor waive the penalty element? His buyer has failed to complete. The remainder of the chain is not his concern. "

HB58 · 15 January 2015 at 7:31PM

OP, I am so glad that you are finally in your new home! I wish you, and the cats, many happy years there.

I_have_spoken · 15 January 2015 at 7:46PM

Let's just hope the heedless jet-setting buyer at the bottom of the chain and his wife are left broken, spiritually and financially

Crashy_Time · 15 January 2015 at 8:05PM

tkane wrote: »

(Text removed by MSE Forum Team)

Your lot have been consistently wrong for 10 years and now with crashing inflation and rising employment/wages you still think the market is gonna correct.

It's ok to hold that opinion, for we live in a free world. But it is not ok to ridicule anyone that disagrees with you and wish total misery on them. Worst part is that your admins ban anyone who questions the HPC mantra so you have been lulled into having a false sense of confidence in your opinion.

Now if Damik would also care to quote me I would be glad to tell him how much of an illiterate AND delusional !!!! he is. £15k off a 500k 1 bed flat in Streatham oohhhhh woooopppeeedooo 2015 crash is on lets create a thread and sing about it with a thousand emotions

If you actually read the thread http://www.housepricecrash.co.uk/forum/index.php?/topic/195761-is-prime-london-crashing/page-338 I think they are talking about bigger reductions than that.

Crashy_Time · 15 January 2015 at 8:52PM

Crashy_Time wrote: »

If you actually read the thread http://www.housepricecrash.co.uk/forum/index.php?/topic/195761-is-prime-london-crashing/page-338 I think they are talking about bigger reductions than that.

Not sure if I am reading it right, but the last entry on that thread seems to be a price drop of 185k?

No, amazingly it seems to be 225k? Can`t be real surely.

BeansOnToast_2 · 15 January 2015 at 9:37PM

Crashy_Time wrote: »

Not sure if I am reading it right, but the last entry on that thread seems to be a price drop of 185k?

No, amazingly it seems to be 225k? Can`t be real surely.

There's one here with a price drop of 275k only a month after first listing

http://www.zoopla.co.uk/for-sale/details/35464991#CVpICyPM2G1X3Or8.97

But there is a story behind it

http://www.gloucestershireecho.co.uk/Revealed-Connors-family-tried-avoid-police-forced/story-22920738-detail/story.html