Updating post from Reddit.
Looking for some practical advice and maybe reassurance.
I’m in a tough spot. I recently accepted an offer on my leasehold flat in London (listed around £245k), but the buyer — who was self-employed — has now pulled out. The estate agent says their job fell through and they can no longer afford to buy. They had a mortgage offer so don’t understand why this happened when we are so close to exchange.
I’m now weighing up: 1. Re-listing the flat with multiple agents to sell faster or stick with one for another month. Does it pick up in September or is my agent just talking rubbish. Also is it worth asking for a 6 month deposit to cover mortgage once survey is approved to avoid a similar situation as once the reform kicks in you cannot rent it out for 6 months after. 2. Renting it out long-term to cover the mortgage (though I’m wary of the upcoming Renters Reform Bill and losing flexibility) 3. Asking my lender for temporary support (e.g. interest-only or forbearance)
My questions: • Has anyone had experience with a buyer pulling out and suspecting the “job loss” was just an excuse? • Is it actually worth going multiple agency, or should I stick with the one? • If I rent it out now, how hard will it be to regain possession later if I want to sell?
Appreciate any advice.
Thanks in advance.
> They had a mortgage offer so don’t understand why this happened when we are so close to exchange.
A person getting a mortgage is obligated to notify a mortgage lender of change of circumstances, losing a job is certainly one of them.
However, they are likely just not wanting to proceed if the new job is not going ahead and they are not commited to buy the property from you until "exchange of contracts".
> Also is it worth asking for a 6 month deposit to cover mortgage once survey is approved to avoid a similar situation
Home Sellers Protection Insurance covers your up-front costs if the purchase falls through. Which may bridge the gap but wont cover everything.
> If I rent it out now, how hard will it be to regain possession later if I want to sell?
It can take a very, very long time. You will also require consent of your mortgage lender to rent it out.
> Asking my lender for temporary support (e.g. interest-only or forbearance)
If you realy need it...
Thanks for your response, I’ve already but a buy to let mortgage and had tenants move out in may which is why I can afford to keep paying the outgoings.
If you can't afford and heading for default, always talk to your credit providers. Especially mortgage lenders, it's best avoided if possible but they can be more lenient and do prefer to be in the loop. What I'm saying is that burying the head in the sand is never an option. So good you're looking to stay ahead of it.
Get it listed for sale, a drop in price may bring more knocks to the door.
If your tight financially now, renting may seem an option but if they default, are bad tenants or a large bill occurs you may find yourself in worse financial hardship and unable to sell on open market.
It may be worth sitting down with an IFA, lay it all on the table and with the aim to bounce back stronger. There are tools that can be used to stop the bleeding temporarily if the financial situation is critical.
I wish you the best of luck.
Thank you!
Price demand supply
Lower the price …higher the demand
The property is valued at £275k but sold it for £245k
So? If you want a quick sale, sacrifice profit
Where in London is it?
What sort of building is it in?
How long is the lease?
What are the service charges?
How soon would you need to get money coming back in ? Either rent or sale
Lewisham, brick building, 116 year lease, service charges roughly £1500, not sure at least 3-6 months. I’m thinking try to sell for another month then rent it out.