Help! Buyer pulled out of house sale, how can we keep the house we are buying?

Brooky_nic

Hi all
I am hoping someone might have some advice please?

My retired parents are in the process of buying a new build house. The buyers of their current house have just pulled out at the last minute so now they stand to loose the new build which they were due to move into in July. Not only was this a dream house for them, but they stand to lose a lot of money in fees that they have already paid, both for the new build and the sale of their current property. Is there any way that they can still make this happen? I was looking into equity release of their current home (which they own outright) as a buy-to-let mortgage but because they are both retired with a low income I just don't think this is going to work. I'm just so upset for them and it makes me so angry that this is allowed to happen so many months down the line. There isn't even time to find a new buyer for their house as the builders have already been pressing them to sell contracts. I just don't know what to suggest, does anyone else have any thoughts please?:(

ReadingTim

Brooky_nic wrote: »

There isn't even time to find a new buyer for their house as the builders have already been pressing them to sell contracts.

Says who? Maybe the EAs know of a cash buyer/investor who doesn't need a mortgage. Alternatively, auction it.

However, in both cases they're likely to get less for it than with a "normal" (and therefore slower) sale, but price is the trade-off for speed. They'll also want to be sure that they'll raise at least whatever they need to get the next place, or find the shortfall elsewhere.

Brooky_nic

Hi! Thanks for your response.
Hopefully fingers crossed that the agent would have someone in mind. That would be the ideal, I agree. They could probably cover a small shortfall but I'm just trying to think of all other options so that they can make an informed decision.
Thanks again.

ReadingTim

Sometimes though, it's not possible to have your cake and eat it, so the options may be to take a hit on the sale price of the current house, or lose what they've paid on the new one by pulling out.

The only question is which loses least...Sorry if this isn't what you want to hear.

Brooky_nic

Yes, the trouble is it wasn't an easy house to sell so even if they would drop the price they still might not get a buyer that quickly. I think they will just have to pull out of the new build. It's just very upsetting as they've been in their current property for nearly 40 years and always wished to move. Now they've finally found something nice that they could afford I so badly wanted it to work for them. That's just life, I guess!
Thanks!

Pupnik

I think it is worth looking into equity release to free up money for the sale to continue – there may even be one of these dodgy home buying schemes around (check the legalities thoroughly) that might buy the house outright at a reduced cost. They may not get what the house is worth but from what you say they just want to be out of the old place and into the new so it sounds like money is not the driving factor here, as long as they can afford to move. Or as mentioned above, look into the possibilities of selling at auction.

kazwookie

I'd be on the phone to ALL the estate agents in the area to see if they have anyone who is look for that type of property.

Also would the new build consider a part exchange deal? no harm in asking

saajan_12

Work out how much they absolutely need from the property to buy the new build, after using any savings, maximising mortgage on new purchase etc. Then consider each of the below options, to see if any cover that sum AFTER all costs of raising the money (e.g. EA fees)

1. Sell property cheaply on open market
2. Sell property via auction
3. Sell property via property buying sites
4. Part exchange property to developer
5. Raise BTL mortgage on old property and rent out, paying mortgage with rent income
6. Sell property to (younger) family member who funds purchase with savings and BTL mortgage on old property.

penguingirl

I'd ask the developer about part exchange- we had a family member do this last year after their sale fell through post-Brexit. The developer gave them an asking price offer on it, but I suspect they got less 'extras' on their new build, and they had originally been using HTB which they couldn't with part-ex.

And if their house is priced to sell, I would stick it back on the open market- some purchases can go through quickly and it sounds like they have at least 7 weeks.

Cakeguts

If it isn't an easy house to sell then the quickest way to sell it is going to be in an auction.