Do I pull out or sell?

Jcross1

Hi All,
Was hoping someone would be able to help me with the following dilemma.
Back in March, I exchanged on a new build 1 bed flat with my then partner – we are due to complete in 1 month.

Unfortunately, in that time we have split up and she has gone her own way.
The only lucky thing was that I was the only one who was put on the mortgage. She couldn’t due to credit reasons and my salary could cover the help to buy affordability alone.
Therefore her only contribution was half the 5% deposit (£5,000) which was gifted to me for mortgage purposes.

In hindsight this is definitely something we rushed into when the relationship wasn’t in the best place and this is what the flat I would of chosen to live in alone at all. This flat was a very big compromise for me at the time and the location, layout, area does not particularly suit me, especially that I will now be living there alone!

My question is what is it best for me to do:

1) Pull out now after exchanging. I think (but am not sure) that this total loss would be £12,000?
I will lose the 5% deposit (£10,500), although my loss will just be half of that. Old Partner has accepted she will lose her £5000
And then a further £1,500 which is made up of mortgage product fee, Solicitors fees and Valuation fee

2) Continue to take the mortgage myself and sell asap after moving in. After 6 months so that wider mortgage market is available.
My worry here is that I know new builds lose value initially and take time to build back up, but I’m hoping since this was only a 1 bed flat, there isn’t much room for a big decrease

Is there anything major I am missing here and what would be the best option for me to do?

Thanks for all your suggestions and help!

[Deleted User]

The total loss could be much more than you think if you pull out, if the developer charges you for their subsequent costs, such as the cost of remarketing.

Thrugelmir

Not just the deposit that is at stake. You can be sued for any loss the seller makes.

Not the time to make hasty decisions. Suggest you make do. Not ideal I know. However you are on the property ladder. You've a new life ahead of you. Who knows what the future has in store.

amnblog

You have exchanged and not to complete would be expensive.

Do you not want to live in the property?

If the value drops after purchase you are only impacted if you sell. In any case, you are only carrying 80% of the risk on a H2B deal.

AnotherJoe

Move in.
At least you won't be paying rent.
If you pull out Your losses could be considerably more than you've noted, if the flat sells for less than you are buying they can sue for that as well.

Prothet_of_Doom

Move in. Get a lodger in (assuming there's 2 bedrooms), to help pay bills.

When you can (some require a year) request consent to let, and rent it out on an assured short hold tenancy, and go and rent something more suited to your life.

AnotherJoe

Prothet_of_Doom wrote: »

Move in. Get a lodger in (assuming there's 2 bedrooms), to help pay bills.

When you can (some require a year) request consent to let, and rent it out on an assured short hold tenancy, and go and rent something more suited to your life.

My guess is, a 1 bedroom flat will have, err, 1 bedroom

robatwork

Great now I've got that song in my head.

foxy-stoat

Your better off completing, moving in and see what happens after the fixed term ends. Your ex may want the £5,000 back, that would be your only real loss.

Some new builds go up in value, some will go down. At least you can control the loss if there is one, rather than the developer coming after you for thousands when they sell it for less and you still have to find somewhere to live.

At least your on the mortgage alone, or you may of had your mortgage declined and faced with no alternative if your ex was on there too.