Pulling Out = Morally Wrong?

MardyBum1977

Hi All, 

I need a bit of advice. We had an offer accepted on a leasehold flat last year. The freeholder lives in the other flat in the property. We repeatedly asked for a deed of variation as our solicitor discovered that without it we could be liable for the whole cost of all the communal areas. This was denied, and they offered an indemnity policy which would not suffice). Our mortgage company will not loan on the property as is. When I spoke to my Solicitor, he said that we should start looking for another property as a contingency. We have now viewed another freehold place and prefer it, but the other party now seem willing to try and put the DOV in place. 

My question is . . . is it morally wrong to pull out of the sale at this point? We need the SDLT window so need to give as much time as possible to get another possible sale through.

GDB2222

It’s not morally wrong. You gave the seller the chance to correct the lease, but he declined. Only once you found something else did he wake up. 

However, if you switch horses, you’ll probably miss the stamp duty deadline.

MardyBum1977

Thanks - this other place is currently empty and we are good to go - do you nit think we could complete before the deadline? 
GDB2222 said:

It’s not morally wrong. You gave the seller the chance to correct the lease, but he declined. Only once you found something else did he wake up. 

However, if you switch horses, you’ll probably miss the stamp duty deadline.

GDB2222

MardyBum1977 said:

Thanks - this other place is currently empty and we are good to go - do you nit think we could complete before the deadline? 

You will need a new mortgage offer. Plus searches, etc. Searches can take months at the moment. It depends how busy your solicitor is, as well. And, the seller's. 

MardyBum1977

GDB2222 said:

MardyBum1977 said:

Thanks - this other place is currently empty and we are good to go - do you nit think we could complete before the deadline? 

Agree mortgage offer could be an issue, but searches on the previous place only took 4 weeks . . . . 

You will need a new mortgage offer. Plus searches, etc. Searches can take months at the moment. It depends how busy your solicitor is, as well. And, the seller's. 

eddddy

MardyBum1977 said:

My question is . . . is it morally wrong to pull out of the sale at this point? We need the SDLT window so need to give as much time as possible to get another possible sale through.

Maybe bear in mind that if you proceed with current flat, it sounds like you'll have a 'difficult' freeholder who has begrudgingly given in to you and agreed to pay a share of the maintenance cost of communal areas. 

As a result, you might find that you have a difficult relationship with a difficult freeholder - which is far from ideal. Perhaps that's a factor in favour of looking elsewhere.

davidmcn

MardyBum1977 said:

GDB2222 said:

MardyBum1977 said:

Thanks - this other place is currently empty and we are good to go - do you nit think we could complete before the deadline? 

Agree mortgage offer could be an issue, but searches on the previous place only took 4 weeks . . . . 

You will need a new mortgage offer. Plus searches, etc. Searches can take months at the moment. It depends how busy your solicitor is, as well. And, the seller's. 

Agree mortgage offer could be an issue, but searches on the previous place only took 4 weeks . . . . 

Put your comments under the quotes, otherwise we can't see them! (I've fixed the one above).

pbhb

The likelihood of you pushing through a sale from scratch before the stamp duty holiday ends is minimal. My offer was accepted in October, the sale has been straight forward so far, searches were applied for early November and not due to get them back until 20th January. 

greatcrested

Everyone is trying to buy before the deadline, so local authorites, solictors, surveyors etc are inundated with work. That slows things down.

Many solicitors are writing to their buyer-clients warning of the possibility of missing the deadline - even where the purchase is already underway.

On the other hand, the deadline might be extended.....

edddy's point about a difficult freeholder is worth considering.

NameUnavailable

Morals don't really come into it, this is a business transaction and until exchange of contracts there's no obligation on either party. If you have seen another place that you prefer then go for it (aside from the issue of the potentially troublesome freeholder!).

GDB2222

Do you need the stamp duty saving for your mortgage deposit?

Otherwise, I would expect that prices will ease a bit after the stamp duty goes up again. Maybe not by the full amount of the stamp duty, but a large chunk of it. At the moment, everyone is rushing to complete by March, but once the deadline is passed people will take stock and be more selective about what they buy.

 I would not stampede yourself into buying a place with a difficult freeholder just to save a modest amount of money.