Buyers wants separate private arrangement for part of sale value

seeking786

Thank you for all the replies.
Yes the agent said the buyer would need to "come up with the 25 from somewhere else".
I will check with my solicitors. Thanks again.

seeking786

kingstreet wrote: »

Has the surveyor valued the property at £410k, or is the rental income assessment equal only to a £410k value?
Have you seen a copy of the valuation report?
You might call me cynical, but if you know the right lender to go to, you might convince a niaive seller to accept a lower amount using the above.
You need to know the estimated rental income, the max LTV and the lenders rent v interest calculation.

According to the agent it was "rental income assessment equal only to a £410k value" because they're applying for a BTL mortgage.
Not seen a copy of the valuation report.
Admittedly i am a naive seller I'm afraid.

aneary

I'd remarket it you could come to the point of exchange and the buyer will want 25K off.

Lord_Baltimore

G_M wrote: »

Tell them you'll agree, but only if they give you, in cleared funds, the £25K before Exchange of Contracts.

Not often I disagree with your advice but this could be money-laundering; I wouldn’t touch it with a barge pole for more than one reason.

Tom99

If you paid inheritance tax you can get the probate value revised down to the actual sale value if the sale is within a certain time frame, 4 years I think.

kingstreet

seeking786 wrote: »

According to the agent it was "rental income assessment equal only to a £410k value" because they're applying for a BTL mortgage.
Not seen a copy of the valuation report.
Admittedly i am a naive seller I'm afraid.

So they are asking you to take less money because they can't get the rental income needed for this particular lender, as I suspected.

What's to stop them getting you to agree to a lower price then changing lenders to one with a lower rent v interest requirement?

I would, as a minimum, request a copy of the valuation before you continue any negotiations.

seeking786

Thanks everyone. Yes my solicitor advised me not to agree to this sort of arrangement. Solicitor also agreed that lenders prefer it when the buyer is paying a price above their valuation because it means more of the buyer's money is then involved - so if the reason the buyer was giving me was that they didn't want to scare off the lender with 'negative equity', then I was definitely being led up the garden path. Solicitor also said that the buyers solicitor would also never be agreeable to this kind of arrangement either.

I suspect it is as kingstreet suggested and it's a way to try and further reduce their offer by blaming the lender and convincing me that future buyers would also face the same issue. The whole thing is so tangled, the agent is also working with the buyer to help him form a company for BTL . I've been waiting since the end of June for them to organise their finances, form a company and get a mortgage offer in place and now this.

I'll ask for a single straightforward transaction of 435 with a reduced commission rate to make up for the drop from 445. I appreciate all the help everyone.

G_M

Lord_Baltimore wrote: »

Not often I disagree with your advice but this could be money-laundering; I wouldn’t touch it with a barge pole for more than one reason.

Oh dear. Once again my sense of humour has fallen on barren ground.

Good thing I don't try to compete with Micky Flanagan!

agrinnall

G_M wrote: »

Oh dear. Once again my sense of humour has fallen on barren ground.

Good thing I don't try to compete with Micky Flanagan!

Always best to employ an emoticon when there might be some doubt as to the intention of the post, because you can be sure that someone will fail to spot the humour otherwise :rotfl:.

kingstreet

... or like me you can flog the living daylights out of any attempt at humour, so there was no possible alternative interpretation of my intention.