To Exchange if we Brexit

david171

Hi all,

We are in the final stages of our house purchase and are looking to exchange towards the end of this month.

If we Brexit on June 23, should we ask for a price reduction? If so what percentage would be reasonable? or should we abandon the sale all together?

Brief background on the house - its a great first time buyers / a starter family home - it has 3 good sized bedrooms (1 in loft) and is in the catchment area for the best school in town, possibly the county, but it doesn't have a garden, nor any space to extend. Its not a forever home, illustrated by the fact the vendor is moving because they have a toddler and another on the way.

I think we could happily live there for 5-8 years, but not much longer, depending on how soon and how many kids we have.

Let me know your thoughts

Thanks

StuartR50

Why would the seller give you a price reduction because of brexit? It'll be a slow process of prices drop which will come about due to mortgages becoming scarcer people losing their jobs reducing the supply of buyers.

Clutterfree

Wow, if you were in my chain and asked for a reduction at this late stage I'd tell you where to go!

How about this scenario...?

If the vote results in remain, how much should your vendor increase the price by? What's reasonable?

You've agreed a price, stick to it or pull out now. Don't mess people about.

Norman_Castle

david171 wrote: »

If we Brexit on June 23, should we ask for a price reduction?

Was the offer you made conditional on staying in the EU ?

david171

Thanks for reply,

The house is chain free and so are we. The house is currently at the top of the market. They could of course say no to any reduction but i suppose what im really asking is how long do you think we would be in negative equity if we did brexit - any buyer offering after the 23rd of June will inevitably be thinking the same!

Like i said, really this is a 5 year home, not a forever home and we dont want to make any mistakes which could prevent us from moving up the ladder in years to come.

david171

Obviously when we offered some three months ago, Brexit didnt seem like a realistic worry!

Its a shame that isn't the case anymore, If you believe todays polls.

StumpyPumpy

On the other hand, if the referendum ends in favour of leaving Europe, then the 1.2 million Brits who currently live in Spain may well lose their rights to residency, causing them to return to the UK and buy lots of houses, thereby pushing up house prices even further.

I assume you have a sizeable sum held back to recompense the vendor in this eventuality.

SP

kilby_007

david171 wrote: »

I suppose what im really asking is how long do you think we would be in negative equity if we did brexit

Nobody knows the answer to your question, not even the banks or the government or the experts. There's too many factors at play. Yes, there could be a crash and yes one is long overdue in some areas, but whether or not it'll happen tomorrow, post Brexit, or in 5 years time nobody knows.

You should never buy a house with the intention of messing the seller around near the exchange date. Either be up front about what you want, or respond to any current economic incident as it unfolds but don't pin any hopes on haggling a crafty discount based on what the MSM is speculating, it just won't end well for you. If you do want to wait and see what happens after Brexit then tell your vendor NOW and back out of the sale if they don't agree with your terms.

mrginge

david171 wrote: »

Let me know your thoughts

Thanks

Hi.
Before I give you my thoughts, could you please advise if you are -
On a wind up
Overly sensitive
Suffering with some form of psychological disorder.

I will then tailor my response as appropriate.

Cheers,

MrG

phill99

kilby_007 wrote: »

Reported

Why?


The truth often offends.

Kynthia

kilby_007 wrote: »

Reported

Why? You should go see what some people write in other parts of the forum if you think that's offensive.

OP if you think house prices will go down because of Brexit then pull out and see. Of course if they go down because of higher unemployment or reduced lending you may struggle to get the mortgage you've got agreed now.