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laura122

Buying A Repo! Reducing Offer

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Ok - To cut a long story short I ve had an offer on a flat in London accepted.

I offered 125K on an asking price of 130K which was accepted - Now the property cannot be mortgaged because it has a short lease of 55 years

It also needs 600 pounds of roof repairs which I just found out today

I am a cash buyer so this is not a problem but does anyone know the process behind me reducing my offer?

I know I can walk away from this flat but if I wanted it could I reduce my offer by 2K?

What would hapen if I did?

Advice appreciated!

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Ok - To cut a long story short I ve had an offer on a flat in London accepted.

I offered 125K on an asking price of 130K which was accepted - Now the property cannot be mortgaged because it has a short lease of 55 years

It also needs 600 pounds of roof repairs which I just found out today

I am a cash buyer so this is not a problem but does anyone know the process behind me reducing my offer?

I know I can walk away from this flat but if I wanted it could I reduce my offer by 2K?

What would hapen if I did?

Advice appreciated!

Never mind two grand make the reduction ten grand tell your solicitor he will only exchange when they agree

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Ok - To cut a long story short I ve had an offer on a flat in London accepted.

I offered 125K on an asking price of 130K which was accepted - Now the property cannot be mortgaged because it has a short lease of 55 years

It also needs 600 pounds of roof repairs which I just found out today

I am a cash buyer so this is not a problem but does anyone know the process behind me reducing my offer?

I know I can walk away from this flat but if I wanted it could I reduce my offer by 2K?

What would hapen if I did?

Advice appreciated!

Just tell them that you are reducing your offer because of adverse things that have come to light during the conveyancing process.

This is a normal thing for people to do. (sometimes even if there are no adverse things)

tim

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It's easy. You just tell the seller your survey came back with £2K's worth of repairs so the offer is reduced by that amount. They can hardly refuse.

Since the flat is unmortgagable and straight cash buyers rarer than hen's teeth (and those with £125K cask will normally be adding a £75K mortgage to get something better) you can probably name your own price anyway.

(You have the right to extend the lease these days - you might be able to add a lot of value by doing that.)

I'm curious though. Why is the roof your problem not the freeholder's?

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Now the property cannot be mortgaged because it has a short lease of 55 years

If the property is unmortgagable how are you valuing the property at 125K?

Reducing offers is absolutely normal. Just tell them of the new offer and quantify the reasoning behind it. You can do what the hell you want, it's your money!

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It's easy. You just tell the seller your survey came back with £2K's worth of repairs so the offer is reduced by that amount. They can hardly refuse.

Since the flat is unmortgagable and straight cash buyers rarer than hen's teeth (and those with £125K cask will normally be adding a £75K mortgage to get something better) you can probably name your own price anyway.

(You have the right to extend the lease these days - you might be able to add a lot of value by doing that.)

I'm curious though. Why is the roof your problem not the freeholder's?

She (probably) means that the MC are going to have the roof repaired and charge each flat 600 pounds

tim

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Maybe the property has been priced because of the short lease, but look into how much it will cost to extend the lease and consider whether you will be able to afford extending it and re-offer accordingly.

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