Paying a fee for someone to retain a house

thomson_adam

Hello guys
I have recently had a mortgage in principle with my partner then after making an offer the underwriter rejected the application. We were told it was very close and should only take a few months for the credit score to pass on my partners case ( not on the electoral roll ).

Anyhow this leaves us in limbo , it's our dream home so this leads me to question . If I offer to pay a monthly fee until we can get the mortgage would this work ? I was thinking around £500pcm with a max 6 month period

phill99

What? To the vendor? This would have no legal validity and the vendor could still sell to someone else and you would have no comeback. You would be £3k down and no house.

Also, why would the vendor hold up their moving plans just because you have a bad credit score?

As Captain Mainwaring would say to Corporal Jones: "You're in the realms of fantasy"

thomson_adam

phill99 wrote: »

What? To the vendor? This would have no legal validity and the vendor could still sell to someone else and you would have no comeback. You would be £3k down and no house.

Also, why would the vendor hold up their moving plans just because you have a bad credit score?

As Captain Mainwaring would say to Corporal Jones: "You're in the realms of fantasy"

Well the house had been on the market for a while
Would a contract from the solicitors not work ?

oldbaldman

phill99 wrote: »

What? To the vendor? This would have no legal validity and the vendor could still sell to someone else and you would have no comeback. You would be £3k down and no house.

Also, why would the vendor hold up their moving plans just because you have a bad credit score?

As Captain Mainwaring would say to Corporal Jones: "You're in the realms of fantasy"

Unkind at the least. OP is looking for a solution to his/her problem. They are putting a possible option out there for consideration, and maybe other options might be put forward?

There is nothing stopping the OP making an offer to the vendor and attempting to make some sort of a deal.

OP - rather than rely on the opinions of complete strangers on the WWW have you considered asking your solicitor to broach the subject with the vendor and their solicitors?

obm

eddddy

Yes - you could arrange a 'lock out agreement' for a period of 6 months.

(Here's a bit of info about lock out agreements: http://www.inbrief.co.uk/property-law/lock-out-agreements.htm)

Essentially, you're offering the seller up to £3k in return for the lockout agreement.

It's up to the seller whether that's good enough to tempt them.

For example:
They may think that by just leaving it on the market they could get an offer of £5k or £10k more.

Or they may not be prepared to wait 6 months

thomson_adam

Thanks guys
I was going to call my solicitor tomorrow , me and the vendor are actually using the same company so that could work.

Yeah he might tell me to get lost so I kmow its just a shot In the dark , do you think in 6 months we could get my partners history sorted ?

It just says on the reports , not on the electoral roll and lack of available credit as she doesn't have cards ... Experian gave her a 894 which was in the good section and Equifax gave her 361 which is poor but only 7 marks from good.

We have applied for her to go on the roll and she currently has two phone contracts with one finishing this month that will be off very soon

MisterB1959

I think what youre looking for is a future guarantee to buy scheme (similar to an option to buy)


they are more common in commercial/land sales but seem to be used by a few property developers

phill99

oldbaldman wrote: »

Unkind at the least. OP is looking for a solution to his/her problem. They are putting a possible option out there for consideration, and maybe other options might be put forward?

There is nothing stopping the OP making an offer to the vendor and attempting to make some sort of a deal.

OP - rather than rely on the opinions of complete strangers on the WWW have you considered asking your solicitor to broach the subject with the vendor and their solicitors?

obm

No it isn't unkind. It's realistic.

If I were the vendor, why would I agree to sell my house in 6 months time to someone that may not be able to afford it? Ok I get a level of compensation, but not nearly enough to compensate me for the uncertainty and the fact that in 6 months, I want to be moved into a new place, not just starting the conveyancing process. If the vendor wanted to wait 6 months before putting the house on the market, he wouldn't be putting it on the market now. There is absolutely no upside for the vendor at all.

Argghhh

no harm in asking - if my house wasnt getting much interest, i would be grateful for a buyer at the very least and a guaranteed 3k for sitting there waiting for a guaranteed buyer would be like winning the lottery

go ahead and ask - what have you got to lose?

oldbaldman

phill99 wrote: »

No it isn't unkind. It's realistic.

If I were the vendor, why would I agree to sell my house in 6 months time to someone that may not be able to afford it? Ok I get a level of compensation, but not nearly enough to compensate me for the uncertainty and the fact that in 6 months, I want to be moved into a new place, not just starting the conveyancing process. If the vendor wanted to wait 6 months before putting the house on the market, he wouldn't be putting it on the market now. There is absolutely no upside for the vendor at all.

Your response is emotive, reliant upon numerous variables of which you have no knowledge and are unsubstantiated, and is therefore not as significant as it might be. Put simply it is "too easy to shoot down".

OP - do not be deterred, make your offer and keep your fingers crossed. Good luck to you with your offer.

obm

thomson_adam

Guys i just want to thank you for all your support , i am worried to death and its down to my partner and if she hadnt moved house in the past 4 months we might have scraped through.

i am having to put in a £45k deposit down so i can obvisouly afford it.

any ideas how you would approach the subject ? i was thinking of visiting him personally or should i go through the estate agents ?