19 weeks into a purchase and deciding to pull out

Bolognese

My partner and I are first time buyers and we had an offer accepted on a flat in February, however, it has been a slog ever since.

Our solicitor is very pedantic and detailed (in the grand scheme of things, a good thing), however, in the early stages the vendors solicitors refused to engage with ours on multiple issues, dismissing them entirely. The major issue being the deed of covenant between the upstairs and downstairs flats. Our solicitor believed the current deed was completely unfit, and the vendors solicitors wouldn't change it.

The back and forth "This is a problem" -> "No, it isn't" -> "Yes, it is" -> "No, it isn't" emails went on for weeks like the Monty Python argument sketch. When a solution was found, another argument began about who would pay for the downstairs flat's independent legal advice over the new deed of covenant they would be required to sign. Much respect to the vendor though, they have agreed to foot this bill. It is fair, since we are having to purchase a few indemnity policies to cover other issues.

However, a big issue for us is that during this time, both my partner and I's personal and professional circumstances have changed. This flat was absolutely the right choice for us in February. Well within budget, great size, room for development and in a beautiful location, perfect. But now, it is entirely possible we could not complete until the back end of August.

My partner and I are lucky that our professional situations are improving, which means that by early 2022, we would actually be able to afford a much larger mortgage. Actual houses would suddenly be within our reach. For us, an extra 6 months living at home to be able to afford an even bigger and potentially far longer-term property seems like quite a good option.

Also personally, an elderly relative who lives with us is sadly going to need more care soon as they have begun deteriorating. An extra 6 months means that not only do we get to spend time with them, but we would also be available to help care for them.

Another big issue is that the downstairs neighbours have refused to give retrospective consent for previous works done. The vendors solicitors have been quite coy about whether they were just never asked in the first place, or whether they refused consent but the work happened anyway. Our solicitor says the deeds work in a way that mean it won't come to bite us legally, but this makes us nervous as to live in this property, we would like to build an extension into the loft. The flat is small but the survey said the loft was readily convertible so we pressed ahead because it's a top priority for us. Without a loft extenstion, this property is just a time holder until we can move to somewhere bigger. But if the neighbours have previously refused work, who knows whether they will refuse this work.

Us waiting 6 months means we would be able to afford a place that doesn't need extensions.

We obviously feel horrendous about doing this to the vendor. However, they have no chain as they are moving back in with family so it wouldn't destroy a purchase for them. We also believe the market has changed in this time and actually they could sell it for quite a bit more than our offer. And at the end of the day, we have to be selfish.

My question really is, does anyone have any advice? We are consulting our solicitor on Monday about it all and will make a decision ASAP. Does anyone know what our expected cost would be? We've already paid outright for the searches, survey and in fact a sofa that is now stored in a garage, so really a last cost would just be the conveyancing fees.

Bolognese

TL:DR It has been 19 weeks since our offer was accepted. The vendors solicitiors are challenging. We are unsure if neighbours will agree to our extension plans as they have previously refused consent for work. Also, our personal and professional circumstances have changed meaning by early next year we would be able to afford a much larger and more longer-term property. Also, we would be available to assist elderly relatives in the meantime. 

AdrianC

I'm not sure it's the vendor and their solicitors that are being "challenging".

You're insisting that the way the property's been apportioned before is not acceptable to you, then refusing to pay for the legals to accommodate your insistance.

You're insisting that paperwork be put in place for things that changed in the past, that nobody's ever had an issue with before.

Ultimately, though, you've walked away because you've changed your mind and decided to buy a different property instead.

MysteryMe

Pull out, there are already issues that might put in a spoke in your plans and your anticipated change of circumstances means this flat is not now as ideal as when you first viewed. You will lose any money you have spent on surveys, solicitors etc.  It is obviously going to be bad news for the vendor but all you can do is apologise and say your circumstances have changed. 

pinkshoes

For me it is a no brainer. Pull out.

1. in 6 months you will be able to afford something far better
2. the other flat owner (freeholder?) sounds difficult.
3. you get to spend more time with this elderly relative.

Crashy_Time

If they can get more than you offered why would they care what you do?

74jax

I would definately pull out. Apologise and forget it, move on. 

ukri

Pull out. Even without the complications with the current flat, freeholder, vendor, solicitor etc, just the fact that you will be able to afford a much better property in a few months is more than reason enough.

At least in England, nothing is set in stone until exchange, you look out for your own interests, that’s it.

catshark88

Pull out now (if you are going to) and stop messing the vendors about. You have changed your mind, it happens (but you should have thought about your developing careers earlier). 

UnderOffer

Definitely pull out, the opportunity to buy a Freehold property compared to a Leasehold is great and not to be missed. 

Justonemorecupoftea

As others have said, pull out.

As for costs it will depend on your contract and how much work your solicitor has already done. Our purchase almost collapsed and we would've had to pay our solicitors approx £250 (plus disbursements for searches we'd already paid). That was for raising searches and initial enquiries, nothing as complex as your situation. But sounds like swallowing this cost in the long run would be better.