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What would you do? Re-negotiate on offer or press on? Thoughts wanted
- Offer accepted on a non-newbuild house, 8k under the asking price, back in April 2023 (although original asking price was probably a little top heavy as the property needs a little bit of work, however, there were no other similar properties on the market that we liked, so didn’t have any other options).
- Secured mortgage at 4.5% for 2 years, mortage offer valid till early November 23.
- Instructed solicitors but yet to do level 2/3 survey or searches, so it is still early days and still possibility for red flags and we pull out.
- The vendors are a couple who are separating so added complication of 2 chains, and their solicitors have been very slow, and there is a chain which is not yet complete. One of the vendors chain is complete, but the others isn’t.
- For the one that isn’t complete, they have told our solicitors that they
might be willing to break the chain to sell the house as they have a rental
property which they could serve a S21 and move into, but that takes 2 months and no guarantee
the tenants will move out.
Opinions on reducing our offer at this stage?
1. Market has changed even more
2. Progress with vendors is slow with a good offer that they would unlikely get now again
3. Our fix is only for 2 years, therefore higher chance that equity is eroded if value falls when comes to remortgaging (hindsight should have gone 5-year fix)
Mortgage broker has advised that whilst we can use the existing mortgage offer up to the value asked for, any change to application including change in price if we re-negociate or property would trigger a re-review and not guaranteed that it is accepted (so small risk that we loose our mortgage offer and back to applying for 5.5%+ mortgage) so would have to offer a lot lot less.
We are thinking about only proceeding if we see legal confirmation from vendors that they are willing to break the chain and copy of a served S21 notice, so that one of the vendors should have somewhere to go – any other thoughts on how to play this?
Or try to find another property now (ideally with no chain) and if the mortgage re-review is sucessful on that property using the existing mortgage offer, it will be valid for another 6 months giving us time to complete and restart all over again on legals.
However, nothing good on the market and asking prices are in cloud cuckoo land still - everything reducing on right move though...
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