Equity Release - vendors want more than house is worth to pay it off

purplebutterfly

FreeBear said:

purplebutterfly said:

Sameoldroundabout - yep! Same one.  
Actually writing it all down (and listening to other peoples' opinions)  has made me reassess things quite a bit.  

Let me throw another one at you... The neighbour's boiler flue is not that far from "your" bedroom window. On a cold day, guess where all the fumes & steam is going to go.... Coupled with the !!!!!! extension and cracks around the window, would you really be happy there ?

House in question - https://forums.moneysavingexpert.com/discussion/6236449/how-big-of-an-external-wall-crack-is-a-bad-crack/p1

I hadn't paid a lot of attention to the flue because we wouldn't be using that as the bedroom (the front room is bigger) so I am glad you pointed it out!  

In terms of the aesthetics of the building, it really doesn't bother us.  We never planned on buying a home but an inheritance has provided us with the means.  We are hoping to live there as long as humanly possible and we're not thinking about trying to add value or making money on reselling.  We just want somewhere to spend 40 years before shuffling off this mortal coil.  

As long as it has the space inside for disability modifications, a nice garden, is on a bus route and is within a 10 minute walk of our local GP (I am there at least once a week for blood tests) then I am happy.   

On balance I may need to reassess certain things though - like whether the monstrosity extension will last 40 years!! 

FreeBear

By the sounds of it, the property is in need of quite a bit of work - Certainly needs repainting externally, and most likely internally as well. If you are already stretched to the limit on budget, do you have any in reserve for repairs & redecoration ?

Trying to be a realist here, and based on my own experiences of trying to do up a home that hasn't had anything done to it for a long while - It is a money pit, draining on finances and enthusiasm. If you don't have a healthy cushion of cash, it would be prudent to look at other properties.

purplebutterfly

FreeBear I think you are on to something there.  We had no idea the property needed structural work doing when we viewed it - we thought it was just cracked render.   To be fair, every single house round here has external and internal cracks so it didn't immediately strike us as unusual

FreeBear

purplebutterfly said: To be fair, every single house round here has external and internal cracks so it didn't immediately strike us as unusual

Hairline cracks (up to say 3mm) are nothing to worry about as long as they don't go through bricks. Wider cracks (say up to 15mm) require investigation to determine the cause - It may require intrusive checks behind floorboards/plaster which a vendor would probably refuse. Cracks of 25mm or more, just run away.

The cracks showing in the pictures you posted on the other thread, whilst not in the "run away" category, are certainly in an unusual location - Render shouldn't crack like that, so it warrants a closer look, but only if the price is right. Can't help thinking that £120K might be too high especially if other cash buyers have passed on it without even viewing.

robatwork

Actually a counter-intuitive negotiating technique would be to tell the EA you're having second thoughts given the obvious structural defects and investment required. You're dropping your offer to 115k and it's only on the table for a week.

Shelldean

So what would happen if they do accept your offer of £120k, and then the survey ( which you'll definitely have due to those cracks ) down values it? And you mortgage lender won't lend you enough to pay £120k??
If other houses are going for less you've already offered over the odds on a house which needs a lot of work, as you said yourself!

GDB2222

You are up against a committee. The heirs get together and egg each other on to higher and higher valuations. It takes a while for reality to set in, and you may be in for a bit of a wait. 

Crashy_Time

Shelldean said:

So what would happen if they do accept your offer of £120k, and then the survey ( which you'll definitely have due to those cracks ) down values it? And you mortgage lender won't lend you enough to pay £120k??
If other houses are going for less you've already offered over the odds on a house which needs a lot of work, as you said yourself!

Good point, I was actually going to say just give them what they want if you really must have the house, but unless it is the OP`s cash being used the bank might not want to play? 

newdriver101

Shelldean said:

So what would happen if they do accept your offer of £120k, and then the survey ( which you'll definitely have due to those cracks ) down values it? And you mortgage lender won't lend you enough to pay £120k??

I believe OP said they are cash buyers - all the more reason why they should just leave their offer on the table and wait for reality to sink in and the vendors to see sense...

Crashy_Time

Best to just walk away, there are plenty more houses.