Buyer withdrew, Lifetime mortgage anyone?

youth_leader

I've been to bed and had to get up again, I can't sleep.

I would really appreciate some advice, I just can't decide what to do following the news this evening that yet again, my buyer has withdrawn.

To add to my misery I am moving out to a rental on Saturday. I took the risk as it is rare to find rentals here that accept pets.

I have posted before about my listed grade II building in need of an estimated £175-£200K of renovation work including bathroom and kitchen refurb. I've now been on the market for fifteen months. I've had about thirty viewings, and three offers, none have been able to proceed. Three out of five estate agents thought it could achieve £600K fully renovated.

My buyer's mortgage lender had requested a damp/timber report which I arranged and paid for, unfortunately the specialists' recommendations for damp were deemed totally unsuitable.

The lender offered the buyer two options, the first being I fund and carry out the £50K works which they would then inspect and grant the full mortgage if satisfactory.

The second option would be for me to reduce the price by £50K and they would lend him the money for the works after exchange and specify a date for completion.

From this experience it is obvious lenders won't take the risk on the house.

I can't decide if I should go back on the market and hold out for a cash buyer, go to auction, or try to fund the £50K works through a lifetime mortgage and stay here.

The works they want done are -

Roof repairs, comprising of:
Repair or renew of defective roof timbers
Withdrawal and replacement of roof coverings
Chimney repairs


Floor repairs:
Repair or renew floor timbers


Damp proofing of the ground floor:
Install an effective damp proof course or tank as necessary

The works total of £50K is from estimates from the buyer's structural surveyor, I know local people I trust who would not be as expensive. I have no idea where the floor timbers need replacing, I didn't see the buyer's survey and it wasn't on the timber report.

I also would not be installing a damp proof course, a friend with experience of historic houses said the plaster used in our 2009 renovation was modern, it just needs hacking off and replastering with lime.

Any advice would be greatly appreciated, I feel so upset about it.

silvercar

The second option would be for me to reduce the price by £50K and they would lend him the money for the works after exchange and specify a date for completion.

I would go for this. It seems this is a weight you can do without. Let it be someone else's problem to sort out and walk away. Time to move on with your life.

eddddy

youth_leader wrote: »

The second option would be for me to reduce the price by £50K and they would lend him the money for the works after exchange and specify a date for completion.

That sounds like a good option. Is the buyer prepared to do that?

It's possible that the buyer knows they could get the work done more cheaply than £50k as well.

So you could try negotiating a £30k or £40k or £45k reduction instead of £50k, if you want.

Especially as the buyer must have seen that the property was in poor condition when they viewed it, and taken that into account in their offer.

To be clear, your post suggests that the mortgage lender is giving you the option to reduce the price by £50k. That won't be correct.

It's the buyer that's asking for the £50k reduction, not the mortgage lender.

The mortgage lender will value the property, and they may stipulate what work must be done, but they won't tell you how much you must sell the property for.

Ask the estate agent how much the mortgage valuer valued your property at - just in case the buyer is 'trying it on'.

AdrianC

Sounds to me like your best bet is get a heritage-aware builder or two to come and take a look for you - no, not a "damp proof specialist"'s salesman... You're already moving out, so disruption will be minimal.

Then do the work they suggest. For a fraction of that £50k, you'll have removed the potential objections.

youth_leader

Thank you for all your advice, the house was my late husband's dream. I never imagined I'd be alone here and in this situation.

I have just phoned the EA and asked about the mortgage valuer, they are phoning me back. I'm now not sure he has definitely withdrawn.

NewShadow

It's a beautiful property... and I can see it must be a lot of work.

If it were me - I'd get quotes for the work required to the timber; remove the property from the market for 6 months to do the work, then put it back up at £500k with a view to drop back to £400-450 post buyer survey.

But only you know if that's an option for you and your market/situation/mental wellbeing - it could be that you just want to get out.

Can you move to something suitable for yourself if you drop the price by the £50k requested so you can get the deal done?

AdrianC

youth_leader wrote: »

Thank you for all your advice, the house was my late husband's dream. I never imagined I'd be alone here and in this situation.

This is my house, and I am very sad to have to leave.

https://www.rightmove.co.uk/property-for-sale/property-<redacted>.html

Good grief, but that is utterly gorgeous!

davidmcn

AdrianC wrote: »

Good grief, but that is utterly gorgeous!

It is, though the fact the East Coast Main Line passes through the back garden might restrict the market...

Slinky

Have you investigated the costs to stick it into an auction with a sensible reserve?

youth_leader

I'm sorry I removed the link, I don't know what is happening yet, the buyer has not yet fully withdrawn.

The trains pass in 30 seconds, and there aren't that many, it is a very peaceful place to live

AdrianC

youth_leader wrote: »

I'm sorry I removed the link, I don't know what is happening yet, the buyer has not yet fully withdrawn.

I've edited my quote of the link.

The trains pass in 30 seconds, and there aren't that many, it is a very peaceful place to live

There speaks somebody who's got used to them! <grin> The fact it's the old station should have been a big clue - have to admit, I didn't look, and simply assumed a Beeching line.

That would be a show-stopper for me.