Our buyers lender has revalued and reduced their loan amount - help!

n217970

Personally I would do the opposite of what crashy suggests, purely because he suggested it.

nobblyned

Crashy_Time wrote: »

Dropping the price would probably be the most sensible thing to drop.

Best to ignore someone that has spent 10 years sat in their dressing gown waiting for a house price crash. Sad really.

Crashy_Time

nobblyned wrote: »

Best to ignore someone that has spent 10 years sat in their dressing gown waiting for a house price crash. Sad really.

Yes, get a bubble mortgage and you won`t need a dressing gown.

Crashy_Time

n217970 wrote: »

Personally I would do the opposite of what crashy suggests, purely because he suggested it.

I would suggest diversifying government bonds differently to equities, would you do the opposite of that?

ACG

Crashy_Time wrote: »

Yes, get a bubble mortgage and you won`t need a dressing gown.

Thats not true. If you buy a house and you are happy there. It does not matter what happens to house prices.

My home could be worth £1 or £1m, it makes no odds as I plan on being here until I pop it.

My last house made £60-70k in 4 years which allowed me to put down a massive deposit on my new home. If I had taken your posts to heart, I would still be paying near enough double what I pay on my Mortgage in rent and not benefit from the increase in values... Im glad I did what I did.

vorneus

Thanks to everyone for your replies.

We remain in an uncertain situation as our buyer decides how they want to proceed after the re-valuation.

In answer to a couple of your questions:

• No it isn't sealed bids
• The amount required for repairs are currently unknown (the managing agent is unwilling to even give an estimate)

We have been able to have some communication with the buyer, so we've taken the opportunity to tell them everything we know of the situation and reassure them.

Basically we are in a position now where we'll wait to see what our buyer decides, and if they don't wish to proceed at all we will come back to them with offers of a higher retention and/or reduced purchase price.

Fingers crossed!

noddynoo

Depending on the percentage drop and the situation in the market where you are I agree with crashy. I work in property in the south east in the maintenance sector and after literally years of madly busy it has literally slowed so much since xmas and literally ground to a halt since about March. Prices are falling quite quickly now

Crashy_Time

ACG wrote: »

Thats not true. If you buy a house and you are happy there. It does not matter what happens to house prices.

My home could be worth £1 or £1m, it makes no odds as I plan on being here until I pop it.

My last house made £60-70k in 4 years which allowed me to put down a massive deposit on my new home. If I had taken your posts to heart, I would still be paying near enough double what I pay on my Mortgage in rent and not benefit from the increase in values... Im glad I did what I did.

IME, especially in recent years, this is not how most people think about property.

Crashy_Time

vorneus wrote: »

Thanks to everyone for your replies.

We remain in an uncertain situation as our buyer decides how they want to proceed after the re-valuation.

In answer to a couple of your questions:

• No it isn't sealed bids
• The amount required for repairs are currently unknown (the managing agent is unwilling to even give an estimate)

We have been able to have some communication with the buyer, so we've taken the opportunity to tell them everything we know of the situation and reassure them.

Basically we are in a position now where we'll wait to see what our buyer decides, and if they don't wish to proceed at all we will come back to them with offers of a higher retention and/or reduced purchase price.

Fingers crossed!

I think that was a joke.

ThePants999

ACG wrote: »

If you buy a house and you are happy there. It does not matter what happens to house prices.

I get the sentiment, but that's not really true.

Firstly, and most importantly, it's not at all true if you have a mortgage. I believe I'm in my forever home, but I have a mortgage on it and will do for a long time. Right now I have less than a 60% LTV, which gives me access to great mortgage rates every time it's time to remortgage. If prices fell significantly, my borrowing costs would go up. If they fell so far I ended up in negative equity, I'd be unable to change mortgage provider. And technically, I think the bank would be within their rights to call it in, though I doubt they would.

Secondly, although the most important role your house serves is as your home, it is also an asset, and that shouldn't be ignored. Even if you never move home again, you might care about leaving an inheritance, or funding care home fees, or releasing equity to fund an extravagant retirement. What you'd want to do if you only cared about this side of the equation is to sell as soon as house prices reached their peak, and buy again when they started to rise. Of course, houses aren't fungible assets, so if you're not willing to move then this isn't an option. I just want to highlight that this matters too, and there's a conflict you have to manage - you have to weigh up what's important to you.