When is if 'fair' to renegotiate?

ST1991

Tiny bit of background: Our offer was accepted at the beginning of the year, but due to various things, we still have not exchanged on the house. None of these delays have been our fault btw.
Our mortgage offer expires today and the money is ready to go from our lender so we can exchange/complete today.

However, now it may not happen for a few more days/weeks - leaving us to apply for a new mortgage.

As it has been such a long time, we've been extremely patient as FTB's and have incurred high legal costs for such a drawn out process without moaning (too much...) - do you think it is fair to ask for a lower purchase price if we cannot exchange and complete today?

We offered above asking price, and the house needs quite a bit of work.

Guest101

Always, no matter what circumstances.


Background is not required

ReadingTim

Guest101 wrote: »

Always, no matter what circumstances.


Background is not required

A comment which applies to both buyer and sell I assume...:money:

Guest101

ReadingTim wrote: »

A comment which applies to both buyer and sell I assume...:money:

I though that was clear enough


the house has risen in value since January after all....

ST1991

Guest101 wrote: »

I though that was clear enough


the house has risen in value since January after all....

This is why i was asking if it was fair... given that the value of the house has most likely increased. We spoke with the neighbour who told us that 2 previous buyers pulled out before us, and as we have gone along with the purchase this long, i'm not sure if it is fair to renegotiate this far down the line...

Hoploz

I think in this instance, if it doesn't go ahead, you might ask for your additional costs to be considered. You haven't said what has caused the delay, but if you are genuinely in a position to proceed but the seller has caused a delay, resulting in you havng to pay a second mortgage application fee, for example, then you might reasonably ask them to cover this cost.

However, if you are just fed up, and are thinking of reducing your offer by 10k just out of sheer annoyance, I don't think this would be reasonable.

Bear in mind of course, what you plan to do if the seller refuses. You have incurred costs to get to this stage, so that would be wasted if you had to start the process all over again when you manage to find another property to buy (what's on the market? Could you really get something cheaper?)

ST1991

Hoploz wrote: »

I think in this instance, if it doesn't go ahead, you might ask for your additional costs to be considered. You haven't said what has caused the delay, but if you are genuinely in a position to proceed but the seller has caused a delay, resulting in you havng to pay a second mortgage application fee, for example, then you might reasonably ask them to cover this cost.

However, if you are just fed up, and are thinking of reducing your offer by 10k just out of sheer annoyance, I don't think this would be reasonable.

Bear in mind of course, what you plan to do if the seller refuses. You have incurred costs to get to this stage, so that would be wasted if you had to start the process all over again when you manage to find another property to buy (what's on the market? Could you really get something cheaper?)

Thanks. The hold up initially was that the tenants did not vacate. They were friends of the seller and changed their mind about the amount of notice given (despite telling us one month, then then agreed to two) and they wouldn't give them notice until we were 'further along'; despite having searches etc and draft contracts already I understand though, as they had been messed around by the previous buyers.
There is also a blocked right of way running along the back of the terrace for 3 houses - ours is the middle one. It has taken a long time to get everyone's signature on the deed of release, with the final one coming back in a matter of days.

The house needs a lot of work (replastering throughout, new kitchen, new bathroom and flooring as it is currently bare concrete) and we are currently renting it from the seller. Probably a mistake, but if we didn't go in she would have gotten other tenants as couldn't afford to pay mortgage on empty property.

I am worried what might happen if they refuse a lower offer, and from what the neighbours have said i don't think they would.

I'm a bit of a wimp with things like this, so i was only thinking of negotiating £1000 from the price to cover additional solicitors fees and mortgage fees.

We have been ready since January... but the paperwork hasn't been.

ReadingTim

A reduction in your offer price could only be presented as "fair" if the additional costs you've incurred as a result of the delay are greater than the likely increase in the price of the property, which only the OP can calculate.

It's probably also worth thinking about it within the context of the overall purchase price: in isolation (for example) a thousand pounds is a lot of money, in the context of a house purchase, it's often less than 1% of the total spend.

Would you risk souring the relationship and wasting the best part of a year over 1%, should the seller not be agreeable to your proposed price drop?

Guest101

I suspect if rent stopped the seller would be exchanging there and then

Mossfarr

If you are paying rent to her I don't think asking for a reduction is unreasonable. I am selling one of my properties to the current tenants and have offered a few £k's reduction on the asking price. I think this is fair as they've paid me rent for 3 years. Besides that, i'm saving the cost of an estate agent!

Guest101

Mossfarr wrote: »

If you are paying rent to her I don't think asking for a reduction is unreasonable. I am selling one of my properties to the current tenants and have offered a few £k's reduction on the asking price. I think this is fair as they've paid me rent for 3 years. Besides that, i'm saving the cost of an estate agent!

Plus there's less of an incentive for the seller to complete, afterall she's got tenants paying of her mortgage