House Purchase Disaster

Maybenexttime

Hi,
First time poster, old time lurker!

Me and my better half have had a disaster recently with a house sale and I was just wondering on what people’s opinions are on our plan B?

In July this year we came across our dream house and put an offer in, which was then accepted. For us to purchase the house we would have to sell our main residence but also a Buy to Let house we have owned for 12 years. This was a really hard decision for us as our tenant had been there for the full 12 years and we felt dreadful giving them notice but the house really was perfect, luckily she decided to stay until we completed, she was then going to move in with family nearby for a few months.

Our main residence was put on the market in July and offer accepted by the end of July. In regards to our Buy to Let, we refurbished the house over the next 2 weeks, it went on the market (first week of August) and the first viewer offered the full asking, offered accepted! Happy days we thought…..Over the next 12 weeks all the valuations, surveys and paperwork were completed, exchange date was set for Friday 2nd November and that’s when disaster struck! The buyer of our Buy to Let pulled out an hour before exchange, we were left speechless. Can you believe there is no repercussions for her pulling out at such a late stage!

We had what felt like a million conversations with the EA’s and family members , finally my FIL decided to gift us the money we would need to complete the chain, which was great! Monday we call the EA tell them the news, we are still good to sell our main residence and purchase the dream house! Then more bad news, it seemed that our Mortgage Offer had the condition that both mortgages must be cleared on completion, the main one and the BTL one.

Our Mortgage Broker has spoken with the lender and has asked them to remove that condition and amend the funding sources on the offer, but apparently this is needs to go back to the underwriters, so now we are in limbo and waiting to see what they say. Our mortgage offer expires in 8 weeks and I don’t think that gives us enough time to find another buyer and complete. Does anyone have any experience of getting the this sort of condition removed? Or any luck selling in 8 weeks?

If we cannot make this chain work, our plan B is to still sell our main residence, I would hate to let that family down, plus we did get a really good price for the property – One I am not sure we would get again with the current change in market conditions. We will then rent somewhere smaller and cheaper, try to save a few more pounds while the BTL gets put back on the market? Sadly, we would have to pull out of the dream house purchase as well. Any advice on this plan? Would you move out of your main house or would you kill off the chain completely and stay put?
Thanks for reading and sorry if I bored you, hopefully a few of you can offer some words of wisdom!
Maybenexttime

Thrugelmir

Maybenexttime wrote: »

finally my FIL decided to gift us the money we would need to complete the chain, which was great!

On the assumption that this is a sizable amount of money. Has the lender considered potentially to be more likely a loan?

Maybenexttime

hi Thrugelmir, the lender hasn't actually given us a decision as yet, It is still with their underwriters. Have you any experienced of getting such a condition removed without a problem?

ACG

All I have read from that is - your broker is sorting it out.
Thats our job.

If it was all going to come tumbling down, I would be having that conversation with our customers, I would not be trying to flog a dead horse (I would word it a little better than that, but the that would be the jist of it). The time to worry is when the broker is worried.

Aside from that, you can get an extension on the offer usually and we have had a customer complete today where their application went in 5 weeks ago.

I realise the stress at the minute is probably enormous and you are probably going to lose a bit of sleep over the next few days, but at the minute you have not said anything that makes me think it can not be done - even if it comes to switching lenders. Your broker is probably slating your buyer and calling them every name under the sun, but things like this happen. This is one of the reasons why having a broker on your side can help keep you sane.

lisyloo

Or any luck selling in 8 weeks?

This is very unlikely through the normal channels.

Sadly, we would have to pull out of the dream house purchase as well.

Only if the seller won't wait.
I waited for my buyer but I knew she had dropped her price £20K so I knew she was motivated.

Would you move out of your main house or would you kill off the chain completely and stay put?

There is no moral obligation on you to complete if something completely beyond your control has happened.
If it's not that inconvenient e.g. no kids no pets and your semi-prepared with the packing and you have somewhere to stay and somewhere to store your stuff then you could consider it a beneficial thing to do rather than try to tie up 2 sales at the same time.

Thrugelmir

Maybenexttime wrote: »

hi Thrugelmir, the lender hasn't actually given us a decision as yet, It is still with their underwriters. Have you any experienced of getting such a condition removed without a problem?

Conditions are in place for a reason. Your broker is the best placed person. Selling the BTL again maybe some months away.

Maybenexttime

ACG - yes you are correct, it is in the hands of my broker and she is a god send. I was probably wondering if people would carry on selling the main residence if it didn't work out. Yes sleep is something i have not seen a lot of recently and i am definitely feeling that!

Lisyloo - We have no kids, we have pets and our packing is complete, so it would be less of an inconvenience for us than the family waiting to come in.