Second Charge mortgage

chuits

Hello everybody,

I am in the process of buying a property and the vendor kept delaying the process for 3 months now. They still haven't even sent the draft contracts.
They came back to us this morning saying they have a seconde charge on the property and the lender refuses to let them sell the property for the price they accepted from us (232k) and is saying they will let them go ahead with the sale only for a price above 240k.And that is way they couldn't move smoothly for that long.
my question is : since they have the right to just reject our offer, why did they made us wait that long? maybe because they think we desperate to buy THIS house. but it is not the case as they know the property requires refurbishing.
Our second suspicion is that they've realised they've asked too low for it and now property are going really quickly for prices way above 250k in the area.

Last and most important question is : can the second charge lender actually dictate the price they are happy with? It sounds like the seller trying to have us plug in some gap in their finance as they are trying to buy another property. (so purely out of greed in that case)
Thks for your answers

ACG

They may have accepted your offer thinking the shortfall could be paid off monthly?

The lender can refuse to remove their charge from the property if it will not be cleared in full on sale of the property.

You can assume any number of things which may be correct, it may not. Ultimately you have the option of pulling out/proceeding or negotiating.

chuits

Hi ACG,
Your answer is very usefull.

My worry on top of that is the vendor couldn't confirm that in the event we decide to ahead he will instruct his solicitors to send the draft contract.
It just doesn't establish any trust at all.

Thrugelmir

chuits wrote: »

It just doesn't establish any trust at all.

Your call. How much do you want the property? Personnally I wouldn't budge and call their bluff.

antrobus

chuits wrote: »

...
my question is : since they have the right to just reject our offer, why did they made us wait that long? ...

Nobody can answer that question.

chuits wrote: »

...
Last and most important question is : can the second charge lender actually dictate the price they are happy with?

That's between the vendor and their lender. Not your problem.

If you don't want to pay more than £232k walk away.

AnotherJoe

I made this hanging on for months mistake once, though in the reverse direction with a buyer i should have dropped much quicker. Live and learn, Never again.

Unless this is a dream house you'd pay £240k for, and are willing to up your offer, then look elsewhere and let them know you are doing that. They may back down and find £8k down the back of a sofa, or they may pull out. If you dont care which, dont offer any more money.

Don't get embroiled in the detail of whatever they may or may not be doing regards mortgages and what money they need.

chuits

thks very much guys.
I've pretty much made up my mind the minute the EA told me that.
I just wanted to hear from various opinions to know if I was thinking with resentment.
I see that I am right, walking away is the best result for us no matter what. I don't trust them anyway.
As I've asked them to send me a formal email stating the reasons they came back asking for more I was preparing not even to answer the email for days.
But the next property on my list is with the same EA.
I guess my answer will be to ask to view the next house

Thks very much guys

csgohan4

chuits wrote: »

thks very much guys.
I've pretty much made up my mind the minute the EA told me that.
I just wanted to hear from various opinions to know if I was thinking with resentment.
I see that I am right, walking away is the best result for us no matter what. I don't trust them anyway.
As I've asked them to send me a formal email stating the reasons they came back asking for more I was preparing not even to answer the email for days.
But the next property on my list is with the same EA.
I guess my answer will be to ask to view the next house

Thks very much guys

It might be a blessing in disguise, you might like the new house better. The Vendor has an issue with stringing along people for a ride. Clearly they knew about it but decided to gazump you at the last minute knowing you spent money.


The vendor got what he deserved