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well, looks like my sale fell through


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Random anecdote from myself.

Agreed sale of the current house at end of lockdown (london suburb) - 500+k, to a buy-to-letter who apparently had a mortgage in place (already agreed in principle, allgedly). Agreed purchase of other place, and have so far spent roughly 3k on legal fees (sale + buy + home buyers survey + mortgage valuation).

 

Unfortunately it seems the buy-to-letter now can't get a mortgage because they had furloughed themselves through lockdown (director), so I think they lied re the mortgage in principle...

We didn't have any problems getting approved for another mortgage, but the furlough stuff presumably has put the buyer's lender off. House we were buying would have been 60% LTV and a mortgage of 2x combo salaries.

The annoying thing is we went with the BTL'er because they offered full asking price, and turned down an over asking price offer (+5k) from a FTB, because they sale was agreed 2 days prior to the FTB attempting to gazump, and it would have been morally bankrupt once sale agreed.

 

Going back on the market, but doesn't look like the market is as crazy as it was 7 weeks ago, for sure. If our purchase falls through, we'll probably move into rented for a couple of months (if we can find a buyer).

 

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Random anecdote from myself.

Agreed sale of the current house at end of lockdown (london suburb) - 500+k, to a buy-to-letter who apparently had a mortgage in place (already agreed in principle, allgedly). Agreed purchase of other place, and have so far spent roughly 3k on legal fees (sale + buy + home buyers survey + mortgage valuation).

 

Unfortunately it seems the buy-to-letter now can't get a mortgage because they had furloughed themselves through lockdown (director), so I think they lied re the mortgage in principle...

We didn't have any problems getting approved for another mortgage, but the furlough stuff presumably has put the buyer's lender off. House we were buying would have been 60% LTV and a mortgage of 2x combo salaries.

The annoying thing is we went with the BTL'er because they offered full asking price, and turned down an over asking price offer (+5k) from a FTB, because they sale was agreed 2 days prior to the FTB attempting to gazump, and it would have been morally bankrupt once sale agreed.

 

Going back on the market, but doesn't look like the market is as crazy as it was 7 weeks ago, for sure. If our purchase falls through, we'll probably move into rented for a couple of months (if we can find a buyer).

 

What a pain. Sorry to hear this. 

The market in prime Herts has a very soft belly now. 

 

 

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Did the agent verify the mortgage in principle document? If not, the fault is with them. 

Either way, bit of a mess but plenty of rentals about if you do get another buyer. 

I'm assuming they didn't, where-as on our side we had to speak to the estate agent's preferred mortgage broker to verify finances (no pressure to take out mortgage with them, so I think it was genuinely a "check if they can afford it", vs a "let's get a kick back" type scenario).

There's no way our buyer would have got an agreement in principle having been on furlough, so I'm thinking they just made that bit up, because they had other mortgages already and assumed they could get another one.

 

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I'm assuming they didn't, where-as on our side we had to speak to the estate agent's preferred mortgage broker to verify finances (no pressure to take out mortgage with them, so I think it was genuinely a "check if they can afford it", vs a "let's get a kick back" type scenario).

There's no way our buyer would have got an agreement in principle having been on furlough, so I'm thinking they just made that bit up, because they had other mortgages already and assumed they could get another one.

 

Lesson in not to trust the word of BTLer I guess. 

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Sorry to hear that, I think EAs should be checking all funding is in place and fully validated before proceeding to best and final offers.

I am a cash buyer and was outbid (I offered asking price) by someone else.  I was not asked for proof of funds at any point.  I assume the other person has a mortgage they will be getting.

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What a pain. Sorry to hear this. 

The market in prime Herts has a very soft belly now. 

 

 

Do you think so ? nothing much in my favoured spots Cuffley, Hertford, Brookmans Park not much on and what is very over priced

What would you call prime Herts ?

 

Edited by GregBowman
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Utterly bizzare that someone would buy for investment at what is obviously the top of the market. Dont understand why someone would buy now unless they had no other palatable option (which is the situation I am in).

 

who knows - good things may still come of this if we manage to sell, and then go into rented until after stamp duty holiday ends (assuming no extension).

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Utterly bizzare that someone would buy for investment at what is obviously the top of the market. Dont understand why someone would buy now unless they had no other palatable option (which is the situation I am in).

 

They can save 3% on stamp duty

:lol::lol::lol::lol::lol:

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Random anecdote from myself.

Agreed sale of the current house at end of lockdown (london suburb) - 500+k, to a buy-to-letter who apparently had a mortgage in place (already agreed in principle, allgedly).

 

Do you know what similar houses rent for?  If so then you can calculate what a maximally-leveraged BTL landlord could pay for it and thus what the likely ceiling on the price is.

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Random anecdote from myself.

Agreed sale of the current house at end of lockdown (london suburb) - 500+k, to a buy-to-letter who apparently had a mortgage in place (already agreed in principle, allgedly). Agreed purchase of other place, and have so far spent roughly 3k on legal fees (sale + buy + home buyers survey + mortgage valuation).

 

Unfortunately it seems the buy-to-letter now can't get a mortgage because they had furloughed themselves through lockdown (director), so I think they lied re the mortgage in principle...

We didn't have any problems getting approved for another mortgage, but the furlough stuff presumably has put the buyer's lender off. House we were buying would have been 60% LTV and a mortgage of 2x combo salaries.

The annoying thing is we went with the BTL'er because they offered full asking price, and turned down an over asking price offer (+5k) from a FTB, because they sale was agreed 2 days prior to the FTB attempting to gazump, and it would have been morally bankrupt once sale agreed.

 

Going back on the market, but doesn't look like the market is as crazy as it was 7 weeks ago, for sure. If our purchase falls through, we'll probably move into rented for a couple of months (if we can find a buyer).

 

Sounds like your property is reasonably priced if you had two offers, albeit one from an untrustworthy source, so with luck your property will again under offer again soon.

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Sounds like your property is reasonably priced if you had two offers, albeit one from an untrustworthy source, so with luck your property will again under offer again soon.

 

This is true, I don't think it's priced high compared to others in the area - if anything it's cheaper than some of the run-down houses it's in competition against. All the run-down houses sold as well, but no land registry data yet, so not sure how much they actually sold for.

 

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Suggest you make sure the ftb is contacted. If you have their no or email diy. Logical to assume agent will make that 2 mins of effort. IME they will assume the ftb will see it on rm.

if the price is unchanged, it won.t be mailshotted so quite likely the ftb wouln.t notice. reducing price by 1k will get it sent to anyone with an alert set up too.

ea.s are often useless.

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Sounds like your property is reasonably priced if you had two offers, albeit one from an untrustworthy source, so with luck your property will again under offer again soon.

Offers that can’t proceed mean nothing.

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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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