About to buy a house...

kez84

We are about to buy a house and are third in a chain of four people. We are selling our home to a lady who will buying our house with cash (she's downsizing) she is selling to a first time buyer and we are buying from a couple going into rented accommodation. We have a mortgage in principle from Nationwide and have an appointment to proceed with a formal application with a broker tomorrow.
Following this morning's Brexit news we are now very nervous. The house we are looking to buy will be our forever home so we have no plans to sell and move again so negative equity is not really an issue at present. However, I am worried about other people pulling out of the chain, mortgage rates etc etc. We want to proceed with things but are worried about potentially loosing a lot of money. No surveys or valuations have been carried out by anyone in the chain as yet. Can anyone offer any advice?

david171

As its your forever home, I won't worry too much about negative equity if you have a long fix period, at least 3 years or so. Re mortgaging might be a problem if its any shorter and your deposit is low.

Are you prepared to reduce the cost of the home you are selling? You might have to agree to taking a hit, if you want to ensure the sale progresses.

Although unfortunately you can't control the rest of the chain. Only try and focus on how you can ensure your end completes. Therefore agreeing the lowest price you would accept for the sale of your current home and buying your forever home without a price reduction

david171

We are buying at the moment and although not in a chain either side, we have decided we are not going to agree to proceed without a price reduction. Although this isn't our forever home

hazyjo

Gawd, can we start a 'Brexit - shall I still buy/sell' thread? The board is gonna be full of the same sort of questions...


Sorry OP, nothing against you, it's just going a bit radio rental over here.


Jx

kez84

This might sound like a silly question (forgive me, first time buying & selling a property, plus first time posting on here!) but could our buyer revise her offer, even though we have already agreed on a price? She offered a lot over the asking price too...

hazyjo

kez84 wrote: »

This might sound like a silly question (forgive me, first time buying & selling a property, plus first time posting on here!) but could our buyer revise her offer, even though we have already agreed on a price? She offered a lot over the asking price too...

In a word, yes.


Nothing is fixed until exchange.


Jx

ellie27

kez84 wrote: »

This might sound like a silly question (forgive me, first time buying & selling a property, plus first time posting on here!) but could our buyer revise her offer, even though we have already agreed on a price? She offered a lot over the asking price too...

Yes, your buyer can do what they want eg walk away or reduce their offer right up til they exchange, after that it is unlikely they will make any changes.

Clutterfree

david171 wrote: »

We are buying at the moment and although not in a chain either side, we have decided we are not going to agree to proceed without a price reduction. Although this isn't our forever home

Quelle surprise!
Shame you didn't warn your vendor of this weeks ago instead of stringing them along.

smile88egc

Yes, it seems a lot of buyers are revising their offers down in light of this mornings results.

You need to have a serious think about how much less you would be prepared to accept now the decision to leave has been made.

kez84

I guess we will just have to sit tight and see what happens! We are not planning to reduce our offer on the property we want to buy so I suppose I just have to hope our buyer has the same morals as us! Scary times.

evansc1

Clutterfree wrote: »

Quelle surprise!
Shame you didn't warn your vendor of this weeks ago instead of stringing them along.

In fairness, no one expected anything other than a remain victory.

A large number of Brexit campaigners didn't really think this would happen.