Re-negotiating house price, due to mortgage valuation

NovaQuark

I am in the final stages of house buying, and because things took such a long time (see below) my mortgage offer ran out, and I had to re-apply for a new one. The second mortgage lenders visited the property, and have valued it at 5K less than what I have offered for it.
For context my offer was accepted on a house nearly 8 months ago. We're both chain free.Yesterday, via the estate agents, I informed the sellers I couldn't get a mortgage for the full price, but I could continue with the house sale, if they reduced the price by 5K. They replied saying they'd budgeted for their new house and can't drop the price at the last minute, would there be something I could do to bridge this gap?Now the hold-ups have all been in their side. There was a legal issue with the property highlighted in Nov, which they refused to do anything about, and I then spent 6 weeks chasing their mortgage providers and mine to say I could not buy the property as it is.The damp in the kitchen (which is pulling down the price of the house) has been exacerbated because they lowered the floor of the kitchen and did not lower the garden outside.And finally I know they have moved out and are renting, before buying a new build, once this house is sold.Any advice on what to say, and to how to stand firm on not paying an extra 5K for the house would be greatly appreciated.Since Christmas I have been house hunting, but have not seen anything I like better, and also at the back of my mind, after the end of March I will have to pay an extra 5K on tamp duty.

Greatgimp

Does this mean that the vendors would have to pay stamp duty too if it completes after 31st March? They would need to consider their loss too.

NovaQuark

Greatgimp said:

Does this mean that the vendors would have to pay stamp duty too if it completes after 31st March? They would need to consider their loss too.

That is a good point. Yes it would

lookstraightahead

If you can't afford it, you can't afford it. Just tell them that there is no negotiation. If you can find the money, then it's up to you whether you want to pay it 

Crashy_Time

Just drop the offer and leave them to decide, you are not obliged to cover their costs for the next move.

AdrianC

Are you so close to your maximum possible LtV that £5k is a showstopper on the borrowing?

Or do you just not want to pay "an extra" £5k?

Strikes me if you dig your heels in now, then "saving" £5k will probably save you nothing because of SDLT, and may well see the vendors walk away.

From what you've said about the damp in the kitchen, that's very easily, quickly and cheaply sortable - a weekend with a spade and a few bags of gravel. If there's paving there, then an hour or two with an angle grinder to cut it back a bit.

Crashy_Time

AdrianC said:

Are you so close to your maximum possible LtV that £5k is a showstopper on the borrowing?

Or do you just not want to pay "an extra" £5k?

Strikes me if you dig your heels in now, then "saving" £5k will probably save you nothing because of SDLT, and may well see the vendors walk away.

From what you've said about the damp in the kitchen, that's very easily, quickly and cheaply sortable - a weekend with a spade and a few bags of gravel. If there's paving there, then an hour or two with an angle grinder to cut it back a bit.

Easier to knock 10k off the price and then pay someone to do it, or maybe find another house without damp issues and sellers who want to quibble over a few thousand quid?

Crashy_Time

Greatgimp said:

Does this mean that the vendors would have to pay stamp duty too if it completes after 31st March? They would need to consider their loss too.

Looks like it might get extended?

Mutton_Geoff

NovaQuark said:

The damp in the kitchen (which is pulling down the price of the house) has been exacerbated because they lowered the floor of the kitchen and did not lower the garden outside.

I'm having trouble understanding this comment. Presumably the external walls have always remained in the same place. So how does lowering a floor increase damp when the soil or whatever the garden consists of was resting against the exterior all along?

Is the level of the garden above the damp course?

Crashy_Time

NovaQuark said:

I am in the final stages of house buying, and because things took such a long time (see below) my mortgage offer ran out, and I had to re-apply for a new one. The second mortgage lenders visited the property, and have valued it at 5K less than what I have offered for it.

For context my offer was accepted on a house nearly 8 months ago. We're both chain free.

Yesterday, via the estate agents, I informed the sellers I couldn't get a mortgage for the full price, but I could continue with the house sale, if they reduced the price by 5K. They replied saying they'd budgeted for their new house and can't drop the price at the last minute, would there be something I could do to bridge this gap?

Now the hold-ups have all been in their side. There was a legal issue with the property highlighted in Nov, which they refused to do anything about, and I then spent 6 weeks chasing their mortgage providers and mine to say I could not buy the property as it is.

The damp in the kitchen (which is pulling down the price of the house) has been exacerbated because they lowered the floor of the kitchen and did not lower the garden outside.

And finally I know they have moved out and are renting, before buying a new build, once this house is sold.

Any advice on what to say, and to how to stand firm on not paying an extra 5K for the house would be greatly appreciated.

Since Christmas I have been house hunting, but have not seen anything I like better, and also at the back of my mind, after the end of March I will have to pay an extra 5K on tamp duty.

It is really your bank that is pulling down the price of the house, but with the damp problems should you really be stretching yourself to buy this property?