I should probably pull out..

Equalee

It's been over six months, there's no chain and now lender wants a Deed of Variation. I should, shouldn't I?

Over 6 months ago I had an offer accepted on an apartment. I had a % deposit well over the minimum at time of mortgage offering being accepted and no chain. Should be easy? Sadly was told nothing could progress in the first 3 months whilst local checks were being done. These were expected in October and arrived end of October.

Once that was sorted and was awaiting information from seller to draw up a draft contract, it transpired that the property had never been registered by the seller's solicitor when property was bought a few years ago, so that delayed things until December when it finally came through having been expediated.

December time, the title issue was resolved and initial information was sent to the conveyancer. Sadly intial information was send towards end of December so focus was on those who were hoping to complete before everywhere closed (totally get that). End of January I get an email/call from Estate Agent telling me the sellers solicitor has answered all questions and am I happy to exchange and complete.

Except, my solicitors had not yet raised enquiries as they had only received the landlords pack the week before. Bare in mind, offer was accepted in August, my solicitor as of middle of January was waiting to hear from the seller's solicitors with the management company sale pack, the landlords sale pack and the leasehold information pack yet to be received

By 2nd week of February, initial report on the title and lease was sent to me, with further enquiries on going. An extension was granted taking me from end of February to end of March and sadly have hit another roadblock.

A response from my lender (Natwest) regarding the ground rent provisions and possibility they would want a deed of variation.
Sadly, the provisions in the lease are "not acceptable". Conveyor is liaising with the seller about a Deed of Variation. This is likely to delay things significantly.

IF they did not want a DoA there is a risk I was told when selling in the future, the buyer may require one and believe that would be around £1000 cost I would incur. A sizeable amount of money when ground rent at the moment is £125 PA currently. There is also a chance if I wish to re-mortgage in the future with same lender or another, they may not be happy with the terms and would have to get one then. I believe the issue is theres terms in the contract that ground rent could increase in the future?

Suppose question is, when has it been too much? is it too late to walk away and why is a deed of variation stopping my lender lending when a dozen properties from same site have come and gone in the meantime.

jonnydeppiwish!

it it’s never too late to walk away if you haven’t exchanged. You don’t sound to keen on the place either!

What has happened to prices where you are over the last few months? When does your mortgage offer run out?

Sarah1Mitty2

If in doubt pull out, plenty more apartments out there and developers are now discounting so you might get a good deal in future.

Equalee

jonnydeppiwish! said:

it it’s never too late to walk away if you haven’t exchanged. You don’t sound to keen on the place either!

What has happened to prices where you are over the last few months? When does your mortgage offer run out?

quite the opposite, I saw quite a few houses and apartments around my budget, and living on my own, trying to swerve apartments with two bathrooms is a feat. Not sure anyone else would have waited over 6 months to move in chain free.

Prices have shot up in this town, with most going on sale and selling for 15-20k more than what they were worth in 2020 (hence lots of sales. Mortgage was due to run out 25th Feb, now extended to 25th March but solicitor not convinced can go through without another extension.

Sarah1Mitty2

Equalee said:

jonnydeppiwish! said:

it it’s never too late to walk away if you haven’t exchanged. You don’t sound to keen on the place either!

What has happened to prices where you are over the last few months? When does your mortgage offer run out?

quite the opposite, I saw quite a few houses and apartments around my budget, and living on my own, trying to swerve apartments with two bathrooms is a feat. Not sure anyone else would have waited over 6 months to move in chain free.

Prices have shot up in this town, with most going on sale and selling for 15-20k more than what they were worth in 2020 (hence lots of sales. Mortgage was due to run out 25th Feb, now extended to 25th March but solicitor not convinced can go through without another extension.

Do you have a link so we can have a look with PropertyLog?

Equalee

Sarah1Mitty2 said:

Do you have a link so we can have a look with PropertyLog?

Property long gone off Rightmove, not sure ever was but postcode is WA2

GixerKate

If you really like the apartment is there any harm in waiting a bit longer?  You could have a look around at the current market and see if anything else interests you but you've waited this long and if the price is as good as you imply then what do you have to lose?

It took 10 months for my last move to take place, I'm glad I waited it out as I really do love my house and it was worth the wait.

gd55

Equalee said:

Sarah1Mitty2 said:

Do you have a link so we can have a look with PropertyLog?

Property long gone off Rightmove, not sure ever was but postcode is WA2

Apartments are going to be ten-a-penny in Warrington centre at the rate they're being built. Not sure what proportion are going to be for sale rather than to rent, but if you can hold out and see how all the new developments pan out you could find the right one for you.

housebuyer143

Honestly, I sold a chain free house, I was super quick on every response and form and it had absolutely no problems and it took 4 months. Solicitors are slow, it's just how it is. 
You are buying a leasehold flat, that wasn't correctly registered which appears to have been in an area where the searches take 3 months to come back, rather than 2 weeks? 

6 months in the scheme of things isn't that long. People assume chain free is faster but there is never a guarantee. Leasehold is always going to be longer. I know someone whose seller died the day before completion and now they need to wait for probate before they can move. House buying and selling is horrible and stressful and so many things you never expect can go wrong.

It might just be your lender doesn't like the lease. Loads of others maybe just fine with it but if you are not happy, then pull out and look for another apartment.

Equalee

GixerKate said:

If you really like the apartment is there any harm in waiting a bit longer?  You could have a look around at the current market and see if anything else interests you but you've waited this long and if the price is as good as you imply then what do you have to lose?

It took 10 months for my last move to take place, I'm glad I waited it out as I really do love my house and it was worth the wait.

It's a catch-22, find something else I like and it's a mortgage rate significantly higher than in August, plus the house price rises in the duration.

Sarah1Mitty2

Equalee said:

GixerKate said:

If you really like the apartment is there any harm in waiting a bit longer?  You could have a look around at the current market and see if anything else interests you but you've waited this long and if the price is as good as you imply then what do you have to lose?

It took 10 months for my last move to take place, I'm glad I waited it out as I really do love my house and it was worth the wait.

It's a catch-22, find something else I like and it's a mortgage rate significantly higher than in August, plus the house price rises in the duration.

As borrowing costs increase lenders tend to down-value properties more, and buyers tend to make much lower offers, wait a bit longer and keep the faith....Good Luck!