Ultimatum/Offer Withdrawal

henke_danke

Been involved in an 9 month ongoing house purchase nightmare. Lots of issues been worked through, from problems with titles to the vendors initial house falling through. Eventually thought we had this resolved and exchange completion was to occur yesterday when all of a sudden another issue popped up on the vendors side and we had to stop and return funds to the bank (we've been in a position to complete for 5 months).

For various reasons (going to be out of our rental, unable to progress with business/finance whilst in the mortgage process etc) we are going to have to put an ultimatum to the vendors that if they do not exchange and complete by date X we will withdraw our offer.

I don't believe in making threats or ultimatums you aren't going to go through with so I am genuinely going to pull the offer if this new date is not met. What I want to understand is what are the implications of this?

- If we pulled the offer and all of a sudden they magically could progress quickly how would that work? New offer, Reduced offer? Carry on as you were?
- Does the mortgage company need to be informed?

Will be disappointed if we lose this house but I've put a lot on hold whilst we tried to sort this out and it has got to the point where I'm out of options and can't wait any longer.

TIA

P.S. Main issue here were the solicitors on all sides. Like spoilt children who seem incapable of communicating with each other.

AnotherJoe

There's nothing magic about an offer. As you've experienced, until exchange has happened, it's just words.

So, if you withdraw just by telling them, and don't tell your solicitor to stand down or your mortgage provider, and then they say "we can proceed" tomorrow, then you just carry on.

You don't say what the issue is with the vendors, was it something they did or something that happened to them?

What about your mortgage offer? Is that going to time out shortly ?

henke_danke

Thanks for the reply.

First (and main) problem that caused the delay was that the vendors pulled out of the original house they were buying and never informed us until just before we were due to exchange (we had actually already been in to the solicitors to sign). Not exactly sure on the detail of the most recent issue as one again the communications have been awful.

6 weeks left on the mortgage offer.

kinger101

I experienced something similar with solicitors (both sides) who acted like complete imbeciles, but most of the delays were on their side. The vendor's EA was very helpful in dealing with their solicitor in the end, but I still delivered an ultimatum as I needed the vendors to shiτ or get off the pot.

The sad thing is if you do withdraw, the solicitors all still get their fees, not matter how bad their service has been.

One possibility is they don't want to sell, and are trying to get you to withdraw so they don't have to pay EA fees.

henke_danke

I'm pretty sure that they are keen to sell and move on from the house.

The EA has been very helpful and extremely frustrated with the vendors and their solicitors. I'd not really considered the fact that if we withdraw the offer their EA gets nothing - it does explain why the owner of the EA has been on the phone with me trying to resolve this!

Very aware that both sets of solicitors will do handsomely out of this even though their egos have played a good part in getting us to this point.

AnotherJoe

So, you already have a built in ultimatum point anyway, 6 weeks. You've been hanging around so long, why don't you make that the final straw.

Never having gone anywhere near a limit, is the 6 weeks left limit to exchange or completion ? If the latter you've only got a month or so in practice, so why not give a date, four weeks or so, and stick to it.

henke_danke

The date is being driven by that fact that we have to leave our current rental in 2 weeks. No option to extend that by 4 weeks unfortunately.

I guess I'm hoping that the fact we will pull the offer in 2 weeks will spark them to get this done or agree to the date and they go into rental until they complete their own purchase. Risk is obviously that given an ultimatum they decide to throw the toys out of the pram and the whole thing collapses. Sadly circumstances mean I don't have many other options.

AnotherJoe

Is there an upside for them in that house prices have risen so they will get more if they put it back on?Or would that affect them as they go up their chain ?

DRP

what happens in 2 weeks? the bailiffs? if not, then you do you *really* have to move out?

HouseBuyer77

what happens in 2 weeks? the bailiffs? if not, then you do you *really* have to move out?

If OP has given notice and LL has agreed a new tenancy with someone else then not moving out could lead to them being sued by LL (new tenant sues LL for costs of alternative accommodation, then LL sues you for the loss caused by your refusal to move out).

If on the other hand OP has received an S21 but doesn't have baliffs knocking on the door in two weeks then they could probably hang on for another month or so easily enough.

OP - Do you have any direct contact with the vendors? Finding out the problem causing the delay would be a good idea.

How much do you want the house? An ultimatum is probably the best way to get completion within the next weeks, but you do have to be prepared for the risk that you will loose the house and be back at square one.

henke_danke

Thanks for replies.

We have to leave the rental in 2 weeks. Have given notice and landlord has new tenants moving in - they are unable to delay. Landlord has been more than helpful over the course of the debacle and has given us short term extension on short notice previously.

We really do want the house but cant put life on hold any longer and have accepted the fact that in pushing hard for a date we may end up losing the house. Would be surprised if the vendors let us just walk away with a guaranteed sell as houses in the price range are not really moving fast and it was on the market for > 3 months before our offer. BUT they are acting quite strange if they really want to sell - not a conspiracy theorist but if they thought they could now get a better price and save on EA fees if we walk they are going the right way about it.