Vendors redemption fee - our responsibility?!

Pertie

Hi all,

Have been using this forum for a lot of advice with our sale and purchase but we're a bit stumped as to how to best handle this one...

We sold our house and had our offer accepted on the house we wish to buy at the beginning of this month.

The people buying our house are chain free.
Solicitors have been instructed on all sides, all our paperwork for both sale and purchase has been returned
Mortgage valuation has been done on our house - no further survey has been arranged
Our mortgage has been approved subject to valuation which will happen next week

We have just been informed that the vendors have a significant redemption fee on their mortgage if we complete prior to December! They are asking if we can split the cost with them.

We're not inclined to do this to be honest. We are already paying over the asking price for the house and feel this is something they should have been aware of prior to putting their house on the market/accepting offers.

I'm in the process of establishing what sort of time scale our buyers are hoping for but I can't imagine they'd be happy to wait until then.

Is this standard practice or are we right to feel annoyed?

Many Thanks

Kentish_Dave

There’s no legal or moral reason to, so I think that you just need to consider the practical one; will you lose the house if you say no?

diggingdude

Personally I wouldn't, they had no right to try and sell their house knowing they couldn't afford this. That said it likely means you would lose the house. Is that something you can risk?

jimbog

How much are we talking about?

Pertie

We would be gutted to lose this house - hence paying over the asking price as it went to closed bids. However this also means we have taken ourselves right to the top of our affordability.

The amount we have paid over the asking price more than covers the redemption fee - in that sense, we figure they have some extra in their budget to play with already.

The fee is £8500

LawAbiding

4.2k for something which is not your responsibility, that's crazy.

If the price of the property was 4.2k + the price you paying, you got to ask yourself, would you still buy it?

G_M

Pertie wrote: »

We have just been informed that the vendors have a significant redemption fee on their mortgage if we complete prior to December! They are asking if we can split the cost with them.

:rotfl::rotfl::rotfl::rotfl::rotfl:


You have to admire the cheek of it though!

Marvel1

I very much doubt your buyers are going to until December to complete.

Why the vendors put theirs on the market knowing this! You are already paying over the asking price, screw them is my answer - that is me.

davidmcn

Pertie wrote: »

The amount we have paid over the asking price more than covers the redemption fee - in that sense, we figure they have some extra in their budget to play with already.

I suggest you point that out to them as politely as you can while trying to keep a straight face. No other buyer (with any sense) would agree to it, so I don't see them pulling out unless they think they will get a better price by remarketing, or actually want to postpone the whole thing until the new year.

oystercatcher

December is only just over 4 months away.
Just take things a bit slowly and it should work out anyway.

Is anyone in the chain in a rush for a particular reason?

kev25v6

Agree to a December exchange but you want a 4K reduction.