Offer accepted on house in London what to do following Brexit?

NanoT

Hi,
We had an offer accepted on a proper in south London a month ago, but we're unsure what to do post Brexit vote. Any help would be greatly appreciated.
We are first time buyers with a 10% deposit. We've had our mortgage accepted and have already paid for our homebuyers survey. This is our first place, so we will probably be there around 2 to 3 years. Our offer that was accepted was £20,000 under the asking price.
We're not sure whether to try and offer a lower price, or pull out and see what happens to the market. We're worried about loosing money, especially as this isn't our forever home.
Thanks in advance for the help!

bigfreddiel

Your house and all the others will track the ups and downs. If prices fall it's good news all round because being a homeowner you will only be interested in the price difference or differential. As prices drop the differential gets smaller. Nice innit

Buy it now

Cheers fj

Cakeguts

If you are worried about losing money on a property you have bought you need to carry on renting. I have no idea what made you think that house prices don't ever go down. House prices go down as well as up even in London. Nothing to do with Brexit it has been happening for years.

kilby_007

Being a FTB you're in a good position to wait it out as you have no chain or other property sale/commitments behind you. Of course property prices go up and down, but in a volatile market where evidence points heavily to house prices falling, unless this is THE house where you'll stay a long time (which you've said it's not) then in my opinion it'd be unwise to proceed, especially when a fall in price could leave you in negative equity in 2-3 years time when you want to sell....

smile88egc

Did anything come up in the survey that you could also use as leverage to lower your offer?

A 10% deposit is not enough for you to be safe from the risk of negative equity.

Are you able to bide your time in your current accomodation situation?

kilby_007

bigfreddiel wrote: »

Your house and all the others will track the ups and downs. If prices fall it's good news all round because being a homeowner you will only be interested in the price difference or differential. As prices drop the differential gets smaller. Nice innit

Buy it now

Cheers fj

This is poor advice in my opinion. You're disregarding the fact that as a FTB the first house you buy is the most important as it dictates how much debt you'll end up paying over your lifetime. I believe there's fairly good odds for a 10%+ discount over the coming months. Paying so much less for your first property could mean that you pay your mortgage off several years earlier, or you have more disposable income each month (depending on whether or not you choose to reduce your term).