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  • FIRST POST
    • ianG
    • By ianG 15th Apr 18, 4:11 PM
    • 73Posts
    • 16Thanks
    ianG
    Broken chain
    • #1
    • 15th Apr 18, 4:11 PM
    Broken chain 15th Apr 18 at 4:11 PM
    So, we had an offer early March which we accepted, then we found a house we liked made an offer, that was accepted. Roll on early April, various legal stuff going back and forth all looking good.

    Last Friday (yes the 13th!), our agent phones up to say our buyers buyer pulled out due to our buyers not coming up with some paperwork that solicitor asked for. We were asked if we would wait for our buyers to find another offer on theirs but we thought straight away, 'why do that as it will fail just like the first one did'. So we said put ours back on the market and behold the agent did come up with some fresh viewings the next day.

    So we are back to square one but my legal people have done all the work on our buying side. Our original buyers will have lost their legal costs on our house searches etc. I am in a '2-attempts' deal with conveyancing firm which so far seem quite competent. So I am not out of pocket just yet. (I have dealt with high street solicitors who are pretty dismal at quite a high cost).

    Am I being unreasonable here putting the house straight back on the market? If anyone comes up with an offer then we will consider, I really don't care who buys.

    We don't require a loan and our seller is top of chain and can move out anytime. Thinking of all the options here but none look good and cost 10% of valuation to get a third party to buy quickly, that is a lot of money! Taking out a bridging loan? This is 1% a month plus fees of a similar size. Even thinking of a short term (1 year) mortgage, no idea if such a product exists, anyone know please?

    It has been over 20 years since we last moved and there have been some major changes that have made the whole process more long winded and it also seems prone to failure with around 30% of housing chains failing.

    Any ideas of what people do to get back on track please?
Page 1
    • hazyjo
    • By hazyjo 15th Apr 18, 6:06 PM
    • 11,147 Posts
    • 14,785 Thanks
    hazyjo
    • #2
    • 15th Apr 18, 6:06 PM
    • #2
    • 15th Apr 18, 6:06 PM
    It's entirely up to you. I would consider giving them a few weeks' grace if my vendor also agrees to hang on. If not, I'd remarket.

    Confused re your third from last paragraph. So you don't need a mortgage? What's the 10% bit about?

    No, you can't get a one year mortgage. Presume you would need one if you don't sell your current home but don't if you do sell.

    Are your vendors happy to hang on for you to get another buyer?

    Would never suggest a bridging loan unless for days or couple of weeks. This seems to be vague at best - prob 12 weeks if you're lucky.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes; Thai cooking stuff; Jo Brand talk; Slime Factory; Flawless tickets; Comedy night tickets; Triominos
    • ianG
    • By ianG 15th Apr 18, 7:03 PM
    • 73 Posts
    • 16 Thanks
    ianG
    • #3
    • 15th Apr 18, 7:03 PM
    • #3
    • 15th Apr 18, 7:03 PM
    Thanks, the 10% bit is the cut you take if your property is bought by a quick sale firm.

    My vendors are not aware at present but they have already been part of a broken chain from late last year so they know the realities of the market.

    Yes a bridging loan is very much a short term thing.

    At this point I can't see how waiting a few weeks for our failed buyers can help. Surely if they have not been able to provide the documents at the first attempt then it will still fail second time round for a different set of buyers? I will do both, wait for them to find another buyer and see if I can find another buyer for my property.
    • hazyjo
    • By hazyjo 15th Apr 18, 8:56 PM
    • 11,147 Posts
    • 14,785 Thanks
    hazyjo
    • #4
    • 15th Apr 18, 8:56 PM
    • #4
    • 15th Apr 18, 8:56 PM
    If you sell to a quick buy firm, they will be taking more than 10% off what you were selling for! I doubt you'll find one person on here to recommend one.

    Just wait for another buyer
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes; Thai cooking stuff; Jo Brand talk; Slime Factory; Flawless tickets; Comedy night tickets; Triominos
    • Hoploz
    • By Hoploz 15th Apr 18, 11:24 PM
    • 3,842 Posts
    • 3,386 Thanks
    Hoploz
    • #5
    • 15th Apr 18, 11:24 PM
    • #5
    • 15th Apr 18, 11:24 PM
    If your income supports it, you could take out a mortgage to fund your purchase, then sell at your leisure. You'd need to make sure you went for one with no penalties if you pay it off in the first few months though. You'd be liable to pay the higher rate stamp duty as you'd own two homes, but could reclaim it as long as you sell within the timeframe.
    • Slithery
    • By Slithery 15th Apr 18, 11:30 PM
    • 1,070 Posts
    • 1,753 Thanks
    Slithery
    • #6
    • 15th Apr 18, 11:30 PM
    • #6
    • 15th Apr 18, 11:30 PM
    Thanks, the 10% bit is the cut you take if your property is bought by a quick sale firm.
    Originally posted by ianG
    Really?

    I'd always heard it was about 30%+ by the time they drop their offer the day before exchange.
    • eddddy
    • By eddddy 16th Apr 18, 8:33 AM
    • 7,264 Posts
    • 7,219 Thanks
    eddddy
    • #7
    • 16th Apr 18, 8:33 AM
    • #7
    • 16th Apr 18, 8:33 AM
    Taking out a bridging loan? This is 1% a month plus fees of a similar size.
    Originally posted by ianG
    Rather than paying a bridging loan for, say, 6 months at 1% per month, it would be easier and safer to reduce your asking price by 6% - in the hope of getting a quick sale.

    You've already had one failed sale, you may have more.

    Or worse, you take on a bridging loan and ...
    • A survey or search problem arises on your current house making it hard to sell (e.g. somebody applies for planning consent nearby)
    • Property prices tumble - and you're doubly exposed as you'll own 2 properties. And you have to sell your current house for less than you expect.
    Last edited by eddddy; 16-04-2018 at 8:37 AM.
    • ianG
    • By ianG 16th Apr 18, 6:54 PM
    • 73 Posts
    • 16 Thanks
    ianG
    • #8
    • 16th Apr 18, 6:54 PM
    • #8
    • 16th Apr 18, 6:54 PM
    Thanks for all the useful info.
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