Reducing offer after mortgage accepted

Majoggy

We have a mortgage offer for a flat and have recently started to engage our solicitors. Valuations/surveys have been done.

We have had advice from numerous people to stall the sale and reduce our offer due to turbulent world events and to price in the almost inevitable recession. As I understand it the vendor is looking for a quick sale, and if we pulled out then that really goes out the window.

If we were to offer less to the vendor and have it accepted, do we have to go back to bank and basically start the mortgage offer again, or is this easily amended?

Thrugelmir

How quick is quick. Leasehold property sales can take a while even in normal times.The mortgage offer would need to be amended. 

Majoggy

Thrugelmir said:

How quick is quick. Leasehold property sales can take a while even in normal times.The mortgage offer would need to be amended. 

The previous buyer pulled out at the last minute. I don't think he wants to wait for the dust to settle on Coronavirus and then start the process again with another new buyer. I understand we/he cannot expedite the sale process (although tbh I expect only delays at this stage).

I take it we can't ask him to pay some of the closing costs (half of stamp duty say) and avoid telling the bank altogether? We would feel much more comfortable with some cash in our pockets. 

davidmcn

Majoggy said:

Thrugelmir said:

How quick is quick. Leasehold property sales can take a while even in normal times.The mortgage offer would need to be amended.

I take it we can't ask him to pay some of the closing costs (half of stamp duty say) and avoid telling the bank altogether? We would feel much more comfortable with some cash in our pockets. 

Correct, any incentives like that would need to be disclosed.

Thrugelmir

Majoggy said:

Thrugelmir said:

How quick is quick. Leasehold property sales can take a while even in normal times.The mortgage offer would need to be amended. 

The previous buyer pulled out at the last minute. I don't think he wants to wait for the dust to settle on Coronavirus and then start the process again with another new buyer. I understand we/he cannot expedite the sale process (although tbh I expect only delays at this stage).

I take it we can't ask him to pay some of the closing costs (half of stamp duty say) and avoid telling the bank altogether? We would feel much more comfortable with some cash in our pockets. 

Be prepared for the fact that the vendor might pull out. Playing games breeds mistrust. 

Majoggy

Thrugelmir said:

Majoggy said:

Thrugelmir said:

How quick is quick. Leasehold property sales can take a while even in normal times.The mortgage offer would need to be amended. 

The previous buyer pulled out at the last minute. I don't think he wants to wait for the dust to settle on Coronavirus and then start the process again with another new buyer. I understand we/he cannot expedite the sale process (although tbh I expect only delays at this stage).

I take it we can't ask him to pay some of the closing costs (half of stamp duty say) and avoid telling the bank altogether? We would feel much more comfortable with some cash in our pockets. 

Be prepared for the fact that the vendor might pull out. Playing games breeds mistrust. 

I wouldn't characterise it as playing games, over the last two weeks the ground has shifted globally and I would expect anyone selling right now to half expect it to fall through.

What's happening now will affect sale prices tomorrow. There will be a global recession. Sale prices being hit is an inevitability.

I understand the vendor might decide to weather the storm and pull out - we are not seeking to offend.

Majoggy

davidmcn said:

Majoggy said:

Thrugelmir said:

How quick is quick. Leasehold property sales can take a while even in normal times.The mortgage offer would need to be amended.

I take it we can't ask him to pay some of the closing costs (half of stamp duty say) and avoid telling the bank altogether? We would feel much more comfortable with some cash in our pockets. 

Correct, any incentives like that would need to be disclosed.

OK, thank you.

[Deleted User]

Stalling the process would be to wait for the recession to hit and get a clearer picture of the percentage change in house prices but this could take time and may mean missing out on a property that you want today.
Changing an offer at this stage does not make much sense as a reduction in house prices is just speculation at this stage. If you succeed in this, the money that you save might be trivial in comparison to a drop in house prices. You'd have to be prepared for the vendor to pull out but if you want to take that risk then go low on the offer. But most vendors want an efficient sale, how desparate are they?
Personally, I've had an offer accepted at what I regarded as a top market price for the property and the  question is whether I now want to complete this process or if I feel that is warranted to wait for property prices to reduce 10 or 20 % (its guesswork at this stage). I want to move but I am in a position of strength if I am patient.

Majoggy

brett19852010 said:

Stalling the process would be to wait for the recession to hit and get a clearer picture of the percentage change in house prices but this could take time and may mean missing out on a property that you want today.
Changing an offer at this stage does not make much sense as a reduction in house prices is just speculation at this stage. If you succeed in this, the money that you save might be trivial in comparison to a drop in house prices. You'd have to be prepared for the vendor to pull out but if you want to take that risk then go low on the offer. But most vendors want an efficient sale, how desparate are they?
Personally, I've had an offer accepted at what I regarded as a top market price for the property and the  question is whether I now want to complete this process or if I feel that is warranted to wait for property prices to reduce 10 or 20 % (its guesswork at this stage). I want to move but I am in a position of strength if I am patient.

Thank you very much, that clarifies my thinking somewhat.