Catastrophic Missive Fees

Captain_Mainwaring_2

siowenson wrote: »

I cant go through with the sale using the p/x route as I cannot get a mortgage to make up the difference.

How do I go about putting my name down for a council house? Thats what I'll have to do if this ends up with me in debt £30k+ because I wont get a mortgage anywhere and we cant live at her parents all our lives.

You won't get a Council House, and truthfully why should you?

You're not homeless yet, and as it stands, how are you going to be homeless? You have equity in you current house and can pay the mortgage.

It all depends on what Persimmon decide they want to do with you or if you sell the flat.

You have a couple of options:-

1) Sell the flat privately and hope you retain enough equity for the deposit.
2) Ask Persimmon if they would consider you changing to a cheaper house - (you'll have to do what the rest of us do and wait for the Palace)
3) Borrow the difference any which way you can - and be prepared to make loads of savings
4) Take the contract to a damned good lawyer and hope that they can find a hole in it. I would assume that these are standard contracts and as such bomb proof - you would need to be looking for something that Persimmon didn't make clear, maybe there is Housing Association properties on the same estate that weren't made clear to you, you need to find anything you can to throw back to attempt to void the contract.

It's clear if Persimmon take the flat on they are going to offer you nothing for it, it's also clear that unless you act promptly that Persimmon will put your knackers through the crunching machine, and by the sound of it you could end up bankrupt if they don't have any compassion.
One thing is sure - stop looking for anyone else to blame, you won't get sympathy from anyone, and sympathy is what you need now.

Trollfever

Has the OP actually told us what their solicitor has said about the situation?

Captain_Mainwaring_2

Trollfever wrote: »

Has the OP actually told us what their solicitor has said about the situation?

The lawyer has a "get out" clause apparently. And the cheque is in the post.

SingleSue

Captain_Mainwaring wrote: »

I had a reasonable mortgage and I had just bought a brand new JCB on finance. If you are asking whether or no I had credit card debts for flat screen TV's and holidays then the answer is NO.

3K a month was going out in interest only at that point.

I remember those days well too....for what we were paying in mortgage repayments then you could actually get double the amount of actual mortgage now (possibly even more) to what we had!

It was actually cheaper to rent than own in those dark days.......

pinkshoes

I'd say you need GOOD legal advice, and see if they can find a loophole in the contract that allows you to pull out of the purchase of the Persimmon home. Did you agree a completion date in writing?

I think your current solicitor sounds useless, and perhaps are partially to blame by not checking you had the finances in place to purchase this house, without relying on the sale of your current flat, but then this was also your responsibility, you took a gamble, and it didn't pay off.

silvercar

Part exchanging is your best bet because it gets rid of the uncertainty of when, if and how much your flat will sell for.

There are other uncertainties out there. Have you the formal mortgage offer in writing for the new place? Has it been valued?

If you can't get a loan for the 9k difference before you complete because it will affect your credit rating (though I would have thought that the new lender has already rated you), borrow it from family. The week after you complete and your mortgage has been drawn down you can get a loan and repay your parents.

Another option may be to get a BTL mortgage on your current home to release some money until it sells. Risky and not recommended as it doesn't bring an end to the problem.

The advantage of part-exchange is that you don't pay EA fees and you know that you complete on both at the same time.

At the end of the day Persimmon want you to buy. One further query, that you could tackly with Persimmon, when was the valuation done on your new Place? If you agreed a price in November and Persimmon devalue your flat, would they consider a reduction in the price of the new one.

Generally builders are keen on part exchange becaust it is another sale of a new build and they can massage the figures to give a good price on your purchase.

Captain_Mainwaring_2

Ah hold on my little mobil perak, are friend has now confirmed that the Persimmon P'ex could provide as little as 70% of the 128K discussed which would have course place it well into negative equity.

SquatNow

So basically, the OPs only option is to default, go bankrupt, and move back with their parents.

trudiha

Siowneson, to summarise the advice you've already been given, firstly you need to find yourself a really good contract lawyer to see if there are any loopholes. The odds on this are quite long, I’d imagine that house builders are quite good at writing contracts but then I’d imagined that they’d be good at building houses that don’t leak and from my reading here I was quite wrong in my assumptions. Maybe you can PM Merlinthehappypig and find out the name of the lawyer he used?

If that doesn’t work approach Perrisimmons, they are in the business of building and selling houses rather than enforcing contracts. If you speak to them directly and explain your situation without trying to blame anyone else, I think that they will go out of their way to try and complete on this sale.

Find any extra cash you can as an extra sweetener for them, don’t offer it up-front but be willing and able to throw in a bit more. This might mean selling your car, watch or mother; be ready to do what you need to. When you are coming up with this extra cash make sure that you tell them where it’s coming from, you don’t want it to look like you had it in the bank all the time.

When you can’t get any more money together, find out if your parents or in-laws are willing to take out a loan in their name for you. This is very last-ditch behaviour but it’s preferable to paying out £1500 a month or going bankrupt. You might have to take on a second job for a couple of years but things will sort themselves out eventually.

I think that you’ve had all the good advice you are going to get from this thread, it seems to me that Cpt. M is getting some kind of kick out of your misfortune and taking delight in telling you how bad things are going to get for you. He doesn’t know that PS are going to offer you 70% of the value of your flat anymore than he knows that the sky is falling in or that you are going to end up having to work down a mine. So I think that this would be a good time for you to back out of this thread, by all means come back in a couple of weeks and tell us all how you got on but at the moment you are getting no joy and an awful lot of stress from it.

Best of luck.

dopester

siowenson wrote: »

I'm not devaluing their property the lack of buyers and mortgages are.
As has been said many times: a property is only worth what someone will pay for it.

At least you've got that partially correct (reduced credit availability / increased lending criteria requirements / affordability).

That's right; you are not responsible for devaluing your neighbours' properties by slashing the asking price of your 2-bedroom flat to just £50 above what your neighbours are asking for their 1-bedroom flats.

I just find it utterly fascinating and gory, with you having taken measures to meet the reality of the situation, which forces the hands of other sellers and takes away the total control to set their price away from them.

It's happening around the UK, and just takes one motivated seller. As I understand it, for England at least, the lower sale price gets recorded and it drags the estimated valuations of other similar properties in the same road/area (could be wrong).

I can tune-in to your neighbours' fear and panic from here.