Buyer may reduce offer, payment instead?

saajan_12

SallyDucati wrote: »

It reduces the LTV as the mortgage will stay the same but the price paid so the ‘value’ will reduce.

The warranty is a condition of the mortgage, will be with all lenders.

This doesn't make sense. If your buyer reduces the offer by £10k, you'll have £10k less proceeds from the sale. If you have money to pay buyer, you can instead put that £10k towards your purchase. So your purchase price stays the same, new mortgage stays the same, and deposit comes from sale proceeds + £10k from you. LTV = Mortgage / Purchase price which is unchanged.

SallyDucati wrote: »

He is a cash buyer so won’t have a mortgage, so the longer he is paying rent the more it is costing him.

I’m am panicking a bit and possibly over reacting!

Yes, but it will take longer to start again so more rent cost plus he'll have to pay fees / solicitor costs twice. Tell your buyer you are close to exchange and proceeding as efficiently as possible. If they do threaten to pull out, then say they'd take longer going with someone else.

sleepymans

True cash buyer = likely to gazunder you regardless of the situation....take or tell em to Foff!

Jane_B

Personally I can see why you'd feel like you are willing to entertain this, getting a buyer in some areas is hard.

If this was me, it would depend on how long the delay could be. If its 1 month or less, tell him to do one. I would probably say to the buyer if in 2 months time the sale is still held up I would reduce to compensate for months of rent from the 2nd month of delay onward. You don't have to, and if you think you could find another buyer easily, then by all means do not offer anything, however if you need this buyer and it would be difficult to get another in a short period of time, then negotiate.

jaelato1

SallyDucati wrote: »

I’m currently selling my flat and buying a house. At the moment there is a hold up with the house due to the 1O year warranty (new build).

The buyer of my flat is a cash buyer, so delays are costing him in rent.

I spoke to my estate agent on Saturday, and my buyer is willing to wait, but is saying if it takes much longer he may reduce offer to compensate for additional rent. This is something I may be willing to negotiate, but would want to do it as a separate payment to buyer as my mortgage is at 59.75 LTV and pushing that higher will change the mortgage rate and possibly initiate another mortgage approval

Is a separate payment suggestion reasonable? I wouldn’t pay the full amount and may see if my vendors would also reduce/ pay some, but I REALLY don’t want to increase the LTV.

Does you buyer know your situation before deciding to buy? if yes, he is taking the !!!! tbh

SallyDucati

Thanks for the responses, warranty issue should now be sorted in next two weeks so my buyer is OK now he knows there is progress. It was the unknown timescale that was frustrating us both, no idea if it could be weeks or months.

Comms69

A sale, even without a mortgage could take 6 months or more.


His rent costs are irrelevant. Just like the cost for parking. or his credit card bills.