Splitting increase cost across chain

Wafc03

We were hoping to exchange contracts today, ours and those were buying from  currently with the solicitors, however the next person up the chain has had to increase the offer for the house their buying and are insisting that the extra money has to come from the chain before they’ll exchange (they’re breaking the chain and completing their purchase at a later date).

Our seller has refused given that a) they don’t have the extra money and b) their offer was made on the understanding the current owner was moving out on an agreed date (this new property has been found more recently)

What I’d like to understand is that if we agreed to split the increase cost across all three parties in the chain, how would this work? Would my offer and that of the person were buying from have to increase and therefore mortgage update would be needed? Or is there a more simple solution?

Thanks

davilown

I suspect you already have your answer as your seller has refused. You could agree to split it between the remaining 2 of you?

moneysavinghero

Just tell them that you will need to become joint owner of the property if they are expecting you to pay for part of it.

Wafc03

davilown said:

I suspect you already have your answer as your seller has refused. You could agree to split it between the remaining 2 of you?

I know the person that I’m buying from so it’s a conversation / suggesting I’m thinking of having with them. Meeting the full price isn’t possible but splitting the costs may be if it means keeping the chain going....much cheaper potentially than starting from scratch.

It’s more the part about the process I’m unsure about. Would I have to declare it to my mortgage company and change the details of that, even though I’m not actually increasing the offer for the house I’m buying? Or by agreeing to make a payment does that mean it has to be an increase on our offer for the house we’re buying?

davidmcn

Wafc03 said:

davilown said:

I suspect you already have your answer as your seller has refused. You could agree to split it between the remaining 2 of you?

It’s more the part about the process I’m unsure about. Would I have to declare it to my mortgage company and change the details of that, even though I’m not actually increasing the offer for the house I’m buying? Or by agreeing to make a payment does that mean it has to be an increase on our offer for the house we’re buying?

I'm not sure how else you'd expect the payment to be made? All you're doing contractually is buying a house from your immediate vendor. So the only money you're paying is the price for that property, however you've arrived at it.