Mortgage chain mess up.

Fruffy91

Good morning everyone. I shall give you all a bit of a background to our situation. We are home owners joint me and my missus. We planned on moving to a new build, so we attended our local development filled out the paperwork for what they call a movemaker scheme, where they sell your house for you then you can reserve. We got a buyer for our house in 1 week! Offer accepted at asking price we then payed our £500 reservation on a plot we loved and had eyes on from day 1. Started solicitor things all is going smooth. Our buyer had a leasehold  flat too sell also which was in the offer accepted timeline, so a little chain, developer/solicitor not worried about a thing. Then 12 weeks on the "investor" has pulled out of our buyers purchase due to only realising now that its leasehold after receipt of management pack!!. Forgetting that we are in a situation now. OUR buyer still wants our house, our house is ready to have contracts exchanged but we cannot exchange until he finds a new buyer for his flat. We can only keep our reservation on thr development as long as there is a full chain in place. Its not our buyers fault why the investor pulled out me and the sales ex at the development think his estate agent messed up and are not telling the whole truth. By the way we have a approved mortage offer, help to buy approved, and all insurances ready to go on new build.
Options
1) pull out of movemaker scheme cut losses and walk away from everything.
2) wait for our buyer to find a new buyer for his flat and then re-reserve hoping the plot we want has not been snapped up in time.
3) Part exhcange ours but I don't think we will qualify for mortage level as using help to buy too boost us
3)auction off or sell our house to a "we buy houses for cash" company too keep our reservation for a quick sale
4)go back on market drop our buyer.

Potentially I dont want to loose our buyer as he generally wants the house still. He was nearly in tears at the fact that he thought he has lost his purchase because of this. He has all his paperwork approved and ready to go on the purchase of our house also.

Can anyone help as me and my missus are so close to having a mental breakdown here its 3am as I type this not able to sleep with worry. I do apologise with spelling mistakes as its so late.

[Deleted User]

Fruffy91 said:

Options
1) pull out of movemaker scheme cut losses and walk away from everything.
2) wait for our buyer to find a new buyer for his flat and then re-reserve hoping the plot we want has not been snapped up in time.
3) Part exhcange ours but I don't think we will qualify for mortage level as using help to buy too boost us
3)auction off or sell our house to a "we buy houses for cash" company too keep our reservation for a quick sale
4)go back on market drop our buyer.

2) and 4). Keep the buyer warm and remarket.

1) wouldn't resolve the problem, the first 3) isn't an option and the second 3) would only give you 60-70% of your current offer.

hounsehunterftb

If this new build is likely the forever home, I wouldn’t sacrifice it as such. I would simply set a deadline to the buyers for selling their house in ‘x‘ weeks (keeping the developer in loop) and which if they don’t comply with then unfortunately put the house on market to sell again. I guess going through with it now instead waiting for you also gives you stamp duty holiday isn’t it 

[Deleted User]

Id remarket. I dont believe any investor didnt realise a flat was leasehold. Thats what they are ( and some might have share of freehold) 
It just sounds suss and you are responsible for his inability to sell. 

Thrugelmir

"Investors" can be fickle buyers. That's the nature of the housing market. 

You need to get yours back on the market pronto. Control the situation rather than be dictated by others. 

Fruffy91

Thing is we don't really if we can help it loose our buyer. Our reservation is cancelled this thurs coming. And there are no other plots avaliable on the development. Our movemaker is transferable to another development site where they do have the same house avaliable at the moment. His flat is in a better selling location than our house is so I think there will be more intrest. Just feel lost and useless 😕 

smaa84

I would look into option 3 we used part exchange on our property with a developer and we got 96% of the estate agent valuation of our house