Who has renegotiated due to CV?

Curls2208

I've read a few other threads. Hmm the opinions are mixed. It sounds like I can negotiate again before contracts are swapped though. I'll also call the bank to try to get a better mortgage offer at some point. Think Covid crisis will be going on at least into may though, boris' three week lock-down is optimistic at best. 

akorn77

I'm currently in the conveyancing stage of purchasing a flat - due to exchange end of April. 

Going to wait a couple weeks before I consider a renegotiation. Current price is £480,000, but I'm thinking a 3% drop to £465,000 - does this sound reasonable in the current climate? 

Then that leads me to the other implications - it may require another valuation and it will go back to the underwriter. All very, very risky? Also the Halifax staff may not even be working lol 

Is there any way to renegotiate a price without going back to the lender? i.e. sorting it out via the solicitors 

onetimeatponycamp

peppapig14 said:

we are thinking of negotiating. supposed to exchange contracts next week, solictor advised all on hold untill lockdown lifted. 
when we put our offer in we had some money left in the bank for obvious repairs needed ( new heating, Windows, electrics ) but now with potential of partner being made redundant we are not confident having no funds left ( ideally would like 6 months rent for emergencies ). 
we are thinking of asking for 5k of the original offer? 

I think it probably depends on the value of the property as to how much to ask off? I've been reading all the other posts, and various articles on the property market, and many are suggesting a potential drop of 10-20% in values.

onetimeatponycamp

lalna said:

I didn't renegotiate but did manage to get 15% off the list price and 5% of incentives added. I was willing to originally pay the full list price and add extras myself so I consider it a massive win even if property prices do fall. This is in the north west for a new build.

Can I ask what you mean by not renegotiating but getting money off list price? Do you mean that you only put your offer in after all this started? As in, you didn't change your offer once made?

bigmortgage

Curls2208 said:

Well I definitely want to keep it on hold until summer anyway. Which I don't think I'll get a choice in, as I don't see this blowing over in three weeks!

That's probably a good starting point. Let the lawyers do their thing at a much slower pace, due to covid, and see where things are when the dust settles. 

hazyjo

akorn77 said:

Is there any way to renegotiate a price without going back to the lender? i.e. sorting it out via the solicitors 

It will affect what they lend you - you will only be able to get a mortgage for a certain % of the property value according to your deposit.

For simplicity, say you're buying for £330k with a £30k deposit and £300k mortgage (prob not possible, but I'm keeping the maths/explanation simple lol), then drop the price to £300k. You wouldn't still be able to borrow £300k as that would make it a 100% mortgage.

bigmortgage

hazyjo said:

akorn77 said:

Is there any way to renegotiate a price without going back to the lender? i.e. sorting it out via the solicitors 

It will affect what they lend you - you will only be able to get a mortgage for a certain % of the property value according to your deposit.

For simplicity, say you're buying for £330k with a £30k deposit and £300k mortgage (prob not possible, but I'm keeping the maths/explanation simple lol), then drop the price to £300k. You wouldn't still be able to borrow £300k as that would make it a 100% mortgage.

Yes, but most people keep the deposit amount the same and take any reduction of the mortgage amount, so if anything this puts you more firmly within the banks lending criteria..

hazyjo

bigmortgage said:

hazyjo said:

akorn77 said:

Is there any way to renegotiate a price without going back to the lender? i.e. sorting it out via the solicitors 

It will affect what they lend you - you will only be able to get a mortgage for a certain % of the property value according to your deposit.

For simplicity, say you're buying for £330k with a £30k deposit and £300k mortgage (prob not possible, but I'm keeping the maths/explanation simple lol), then drop the price to £300k. You wouldn't still be able to borrow £300k as that would make it a 100% mortgage.

Yes, but most people keep the deposit amount the same and take any reduction of the mortgage amount, so if anything this puts you more firmly within the banks lending criteria..

Agree - but they were asking about not having to go back to the lender. Presume that meant they wanted to borrow the same, but could be wrong.