Reduced sale price/allowance on completion rejected

AlexTheRed

I'm selling my house and further to a homebuyer's survey which has identified minor issues with the house, we have agreed to either a) reduce value of house by agreed amount or b) issue allowance on completion of agreed amount so buyer can complete repairs post completion.



Our buyer's broker has stated the offer can't be reduced as that would mean reapplying for the lower mortgage value (surely this is only an amendment) which they don't want to do as the buyer was lucky to get the mortage in the first place and they don't want to risk it not being approved again (although they will be asking for less!)


The buyer's solicitor has stated that allowance on completion also not possible due to it contradicting the terms of the mortgage.


We don't have time to complete the repairs ourselves (lead time 12 wks) and I also don't want the inconvenience...my solicitor is exploring whether the agreed sum could be independently held in their client account on completion and paid directly to the contractor on completion...anyone had any luck doing this?

kingstreet

If the mortgage has already been agreed at a higher amount, surely a lower amount at same loan to value is unlikely to be an issue?

I think the solicitor plan is still going to hit the "vendor gift" rules most lenders adhere to, regardless of the final recipient.

foxy-stoat

Can you not just pay the contractor now for them to complete the works in 12 weeks time and proceed at the amount agreed by the lender?

Or put it back to the buyer to get the mortgage reduced, I suspect the broker doesnt want to do any more work for not getting paid for it.

ACG

Definitely sounds like the broker is being a lazy sod!

LRmortgage

Agreed, sounds like a lazy Broker.
It’s generally not difficult to get an offer amended downwards.

scotgal30

When they move in have the contractor come in do the work and invoice you?