Unsure how to proceed with purchase

WombleBat

Dan-Dan wrote: »

you already know , in your words, the house needs at least 16k of work , do you really think the vendor is going to sell it to you at 244 ?

Almost certainly not, but I suspect they will not agree to >1% of asking price especially given the reductions over the last year.

Having been in this position in the past where I inherited a share in a house (With 6 others), the EA told us that the house was worth £200,000 ended up selling for £160,000 after 2 years as other beneficiaries were steadfast on the £200,000 as they had already mentally spent it. Fortunately I never did which is why I have a deposit now!

WombleBat

ThePants999 wrote: »

Are you sure your lender will offer you a 95% mortgage?

Having an AIP for £X doesn't mean you can borrow £X regardless of the property you're buying - the property still needs to provide adequate security for the loan, and these days that usually means you're borrowing no more than 90% of the value.

The AIP is based on 95% LTV so I am assuming they will lend. We have a MA who says that even if they refuse there are other options.

We have "cash" over and above our deposit which we wanted to keep to one side as a rainy day fund so if pushed we can get to 85% LTV but I desperately do not want to do this as it leaves us with no rainy day fund.

megaginge

Dan-Dan wrote: »

you already know , in your words, the house needs at least 16k of work , do you really think the vendor is going to sell it to you at 244 ?

The OP isn't suggesting they want to reduce their offer.

They are saying they don't want to pay more given cost to do the work, which is fair enough.

You'd expect up at least 5% off asking price usually, and following on from that I'd want to recoup some of the costs of work they know they need to do.

260 offer on a 280 asking price seems incredibly reasonable given the circumstances and I don't think there's much more you can do OP except make that point plainly. You found out about issue post your offer going in, but are still prepared to pay it - just won't negotiate further. That's very reasonable. Ignore !!!!!! EA tactics and be firm...

Dan-Dan

megaginge wrote: »

The OP isn't suggesting they want to reduce their offer.

They are saying they don't want to pay more given cost to do the work, which is fair enough.

Why would they not, indeed they may have to dependant on lender


as posted by the op...

The following day I sent an email offering 260,000 but since then a friend alerted me to the fact that there were previous offers on the place which uncovered some pretty expensive issues, which I don't really want to discuss as they are very specific and kind of identifies the property but they are essentially going to land us with a bill of 16,000 within the first year to get rectified.

megaginge

WombleBat wrote: »

The AIP is based on 95% LTV so I am assuming they will lend. We have a MA who says that even if they refuse there are other options.

We have "cash" over and above our deposit which we wanted to keep to one side as a rainy day fund so if pushed we can get to 85% LTV but I desperately do not want to do this as it leaves us with no rainy day fund.

You'll almost certainly get your AIP.

Only risk is that property valuation comes in lower than offer price ... In which case you may struggle to hit the max 95% LTV.. So another justification to not keep increasing your offer really because you need some spare equity to cover the required works

megaginge

Dan-Dan wrote: »

Why would they not, indeed they may have to dependant on lender


as posted by the op...

The following day I sent an email offering 260,000 but since then a friend alerted me to the fact that there were previous offers on the place which uncovered some pretty expensive issues, which I don't really want to discuss as they are very specific and kind of identifies the property but they are essentially going to land us with a bill of 16,000 within the first year to get rectified.

Well indeed - all depends what the valuation says...

WombleBat

Just to clarify we KNEW there would be about 1-2K of work required in the area of the issue but were not expecting the scale of repairs. There are several other small things that either I can do or have friends in the trade so could get sorted relatively cheaply.

Originally my "plan" was to get to a point at around 270k and if pushed we would have paid 280k

My biggest concern was the survey valuation originally, more so now we know about this. My intention is to pay independently for building survey and just do the value only with lender, appreciate its doubling costs but seemed a safer option.

260 I know now is fair if not over the odds but I am still happy to pay it if they agree.

Dan-Dan

If you have given the heads up to the EA that 16k works is required and still saying your offer is 260 , and it hasnt been accepted it would seem to me that you have already alienated the vendor and the EA , they probably think even if they do accept 260 , at some point your going to want to drop the price....especially once you have spent hundreds of pounds on a structural survey

megaginge

Dan-Dan wrote: »

If you have given the heads up to the EA that 16k works is required and still saying your offer is 260 , and it hasnt been accepted it would seem to me that you have already alienated the vendor and the EA , they probably think even if they do accept 260 , at some point your going to want to drop the price....especially once you have spent hundreds of pounds on a structural survey

I suppose a fair question is, why has the property been on sale so long? Does the vendor have any urgent need to sell?

Probably not good advice, but this is one of those situations where I'd really like to know what the vendor was thinking directly, cut out the agitative middle man

But people always recommend to avoid talking to the vendor, for some reason.

(Personally my sale would have fallen through for sure had I not engaged with the vendor directly)

Jhoney_2

Perhaps if you had made a better offer initially e.g without a nearly 10% 28k reduction before you were aware of any issues, you would have had a been in a better position. Yes it was cheeky and you may have put the sellers noses out of joint.

You then raise your offer by 6K and are suprised the are not jumping with joy?

They want 280, the work will cost c.16K so they are peobably expecting something nearer to 264K.

You say you love it and the math/need favours the sellers as they don't intend to live there so do you love it enough?

Yea and pay, no and go. All this hand wringing is a waste of time if you have found nothing in the UK you like equally as per your post above.