Bridging loans when buyer withdraws

AdrianC

user1977 said:

Any reason why it needs to be a cash buyer? You just want somebody without a chain behind them prepared to move quickly, even if they're borrowing it needn't necessarily take a long time.

It removes the risk of the putative buyer then saying "But my mortgage lender won't lend me that much, because the valuation is lower..."

user1977

AdrianC said:

user1977 said:

Any reason why it needs to be a cash buyer? You just want somebody without a chain behind them prepared to move quickly, even if they're borrowing it needn't necessarily take a long time.

It removes the risk of the putative buyer then saying "But my mortgage lender won't lend me that much, because the valuation is lower..."

So you find somebody with enough cash to make up any such difference. Doesn't mean you need to disregard anybody with a mortgage. Also "cash buyers only" tends to be seen as a flag that there's something actually wrong with the property making it unmortgageable.

eddddy

WatchedClock said:

What kind of discounts do you typically have to give to entice a cash buyer? I suppose that's unknown until you try. Presumably the 'we buy any house' type outfits make very low offers?

Are there any other options we could explore?

"We buy any house" companies claim to pay 80% of market value. So they are likely to say something like this:

• Your asking price is £150k
• But we think £140k is a more realistic market price
• So we'll pay you 80% of £140k = £112k

So you'd be better off telling your EA to reduce the price to £140k or even £135k for a quick sale - and you'd still be much better off than using the "we buy any house" company.

Weathergirl_76

Ive also heard the ‘we buy any house’ type companies lower their offer after their survey is complete.