Pulling out of house purchase - repercussions

scotboy82

Hi

FTBs about to pull out of our house purchase today. Wife has had a job offer on other side of town, so we are now looking to buy in a different area.

I feel really sorry for the sellers, but unfortunately the area we wanted to buy in is no longer suitable.

Other than losing our mortgage evaluation fee and our solicitors fees thus far and searches fee etc, are there any other finical repercussions for pulling out of a deal in England. We 't hadn't signed any deal or anything that required a penalty to be paid if any side dropped.

Any advice much appreciated.

brit1234

The way the financial markets are falling it could be good you pulling out. Your be able to ger somewhere better and cheaper.

maninthestreet

If you haven't exchanged contracts, then you have no liability whatsoever to the vendors if you pull out. I assume the house being bought is in England or Wales, and not Scotland.

baggieboi_2

if contracts are exchanged you will lose your deposit, if not you can pull out whenever you want.

zebulon

scotboy82 wrote: »

Hi
Wife has had a job offer on other side of town, so we are now looking to buy in a different area.

errr -

Is it a better area, do you know you can find a place you like there, for your budget etc..?
Or what you really want is to be next door to work?

What if she does not like to job and change? and find another one at an other side of the town, would you try to move again?

So did you mean 'other side of town' or 'other side of the country' ??

I guess you're not that crazy about the house you were going to buy then? otherwise would you (she) not be ready to commute?

well of course I say this, but I'm realising now that if you live in london I suppose the 'other side of town' can be quite a way away!

scotboy82

Other side of London unfortunately, we were buying in Essex and she was going to commute into central London, which was a bit of trek already. Her job is now near Wimbledon so looking to buy near hackbridge/ wallington area. Looks quite nice and we can get a two bedroom maisonette without stretching ourselves too much.

But like just about every other FTB on this site. It is a total dilemma whether to buy into this falling market.

Aware that houses prices are likely to fall. But I suppose the saving grace is that so will other prices in the area making it still possible for us to trade up to a larger house in 7-8 years time. Both of us are aged, 25 recent grads earning combined 53k and hoping that this will increase in future years (although of course will hit a severe blip due to potential kids) Money wise I think we would probably be better off renting for 5 years or so then buying a bigger house. But just really want to buy.
We are buying for the following reasons
- sick of renting
- decent enough deposit (40k) so can get mortgage
- want to have kids soon and would rather have somewhere that we own
- we should always be able to afford mortgage monthly payments (stable jobs)
- should still be possible to trade up even in falling market
- and lastly, just want to have somewhere we call home and not searching forums like this all the time looking for house price news when I should be working;)

neverdespairgirl

Essex to Wimbledon would be one hell of a commute, you'd forget what she looks like!

Smashing

neverdespairgirl wrote: »

Essex to Wimbledon would be one hell of a commute, you'd forget what she looks like!

Could be considered an advantage in some marriages.

No repercussions before exchange of contracts, except a bit of house-buying karma which may bite you in the rear at a later date.

Cascarelli

Just a couple of comments.....

Renting for 5 years would cost you £51,000 assuming a rent of £850 per month. You'd have to compare that against the price of the type of house youre looking at now dropping by that much or more in 5 years. In 5 years time you may find the value of the property has gone up even allowing for a possible drop in prices currently.

If youre planning on having children (and assuming your wife might be giving up work at least for some of that time), do you really need to move closer to her work?

Just something to consider.