If you are going to drop the price on the day of completion make sure to do it before you exchange contracts (and have the revised mortgage offer ready) or it could screw things up.
Why not give them the opportunity to share the risk?
Option A. You give them 7% less now
Option B. You give them 10% less now, and if in twelve months house prices are the same as today (or more) you will pay them a further 10%.
The only way that they can economically argue against B is by arguing that they expect prices to fall over the next twelve months …
Of course they’ll tell you that they need the full price or they won’t be able to afford a Smallbone kitchen in the au pair’s annex over the garage in the new house that Samantha has set her heart on (the house that is, not the annex, nor the au pair come to thatj
If it’s analogous with England then this would give you problems with the valuation itself not just the ltv. The bank would need to be advised and would not have the machinery to decide if it’s ok fast. You might have to go to credit again.
also gives you undervalue issues. Not insurmountable ones but it does.
I think they’re more set up for it here. I don’t see why the bank would care if they’ve got a valuation as client at say 2m but the mortgagee only ends up paying 1.8m.
If the value has fallen since my offer, what on earth is wrong with it? Plenty of uk transactions will be cancelled if rates go up. As someone else said, they can always say no and see if they can get someone else to pay them the overinflated price - two months later when prices might be even lower. It’s a simple market transaction. They could have asked me to put in place a contractual deposit if they were really concerned. I would prob have entered into it two weeks ago
Because they would have done it again and we’d already been through a bidding war, so I told them where to shove it. Hope the new buyer enjoys their massively overpriced purchase now
Gazundering would be morally fine but for the costs of transacting and the process here. But only prior to exchange. After exchange totally immoral. Stick to your Contract.
some of you may say that you can’t chip after contract. I see it all the time, only with cash buyers though. It’s a dare. Complete in spite of my obligation to pay more as you will have to spend a lot to force me to pay full amount and probs lose your onward sale. Standard move for an arsehole.
This happened to one of my mates. She got absolutely fooked by her buyer on completion day when her and her family and their two lorry loads of worldly belongings were on the road heading to their new life.
They sucked up the gazundering, found the extra money to honour their onward purchase and sat tight.
Since then no one has paid more for a house in the road they sold on, the absolute aunt who dishonoured his word ending up losing his job, then getting divorced, and then his wife had to sell up for about 35% less than they paid.
Faod and in relation to Ami's story, when selling and buying simultaneously, does this mean you can be left having sold on the Friday and not have bought on the Friday? Or must you always have sold at least the Friday before and been homeless for a week?
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lose this purchase and your mortgage will get a lot more expensive...
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Err haven't you booked the money though, on receipt of DIP or offer.
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I'd put the offer up if I was a Tory cuck like you
Trickle down economics init
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I just asked risky jr who is more real, him or your house purchase and he turned into a pumpkin.
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Money has been booked. I should drop offer by what 10-15pc on completion day?
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Increase the offer using some of Davos’ investment.
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Unitise my asset. Good idea
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If you are going to drop the price on the day of completion make sure to do it before you exchange contracts (and have the revised mortgage offer ready) or it could screw things up.
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Are you expecting the prices to come down by 300% in a year? (I think that's what you get if you compound 10% per month).
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Don’t they know who you are?
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No exchange stage here, octo. Wouldn’t need to change borrowed amount, ltv v low.
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Why not give them the opportunity to share the risk?
Option A. You give them 7% less now
Option B. You give them 10% less now, and if in twelve months house prices are the same as today (or more) you will pay them a further 10%.
The only way that they can economically argue against B is by arguing that they expect prices to fall over the next twelve months …
Of course they’ll tell you that they need the full price or they won’t be able to afford a Smallbone kitchen in the au pair’s annex over the garage in the new house that Samantha has set her heart on (the house that is, not the annex, nor the au pair come to thatj
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I mean they could just say 'no'
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v easy to change offer price before exchange
impossible after
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No exchange stage here, octo. Wouldn’t need to change borrowed amount, ltv v low.
I used to convey in the distant past you know.
"Miss Perkins please put me ask the operator to put me through to Kingsway 522. I need to conduct a telephonic exchange via Formula B."
I expect they've all moved on to fax machines by now.
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It’s completion only here. And you can only
compelte on a Friday.
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It all sounds very civilised although you'd have to make some sacrifices. Golf on a Tuesday perhaps.
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And you, or your solicitor, have to attend court
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Is there no obligation though to advise the lender if the terms of the transaction change?
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“And you, or your solicitor, have to attend court ”
What have you done this time?
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Prob sails but my ltv’s so low if we were cutting the value of the property it would be nowhere near their next ltv band
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Very funny Jim, for the property transaction
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Risky buying at the top of the market is a very thin silver lining to a very dark cloud.
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Not buying it as an investment eeyore
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If it’s analogous with England then this would give you problems with the valuation itself not just the ltv. The bank would need to be advised and would not have the machinery to decide if it’s ok fast. You might have to go to credit again.
also gives you undervalue issues. Not insurmountable ones but it does.
and it’s the mark of a total penis.
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I think they’re more set up for it here. I don’t see why the bank would care if they’ve got a valuation as client at say 2m but the mortgagee only ends up paying 1.8m.
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“and it’s the mark of a total penis.”
Word.
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If the value has fallen since my offer, what on earth is wrong with it? Plenty of uk transactions will be cancelled if rates go up. As someone else said, they can always say no and see if they can get someone else to pay them the overinflated price - two months later when prices might be even lower. It’s a simple market transaction. They could have asked me to put in place a contractual deposit if they were really concerned. I would prob have entered into it two weeks ago
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Is this more real than the kid you made up?
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No comment. But i see no one has actually argued that gazundering is perfectly moral
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“and it’s the mark of a total penis.”
Word.
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*immoral
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I was gazumped only a few months ago. Complete arseholery.
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Why didn’t you match the new offer?
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Because they would have done it again and we’d already been through a bidding war, so I told them where to shove it. Hope the new buyer enjoys their massively overpriced purchase now
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Well quite. They did you a favour.
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Gazundering would be morally fine but for the costs of transacting and the process here. But only prior to exchange. After exchange totally immoral. Stick to your Contract.
some of you may say that you can’t chip after contract. I see it all the time, only with cash buyers though. It’s a dare. Complete in spite of my obligation to pay more as you will have to spend a lot to force me to pay full amount and probs lose your onward sale. Standard move for an arsehole.
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Watch out for karma, Risky boy.
This happened to one of my mates. She got absolutely fooked by her buyer on completion day when her and her family and their two lorry loads of worldly belongings were on the road heading to their new life.
They sucked up the gazundering, found the extra money to honour their onward purchase and sat tight.
Since then no one has paid more for a house in the road they sold on, the absolute aunt who dishonoured his word ending up losing his job, then getting divorced, and then his wife had to sell up for about 35% less than they paid.
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I won't do that again.
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Faod and in relation to Ami's story, when selling and buying simultaneously, does this mean you can be left having sold on the Friday and not have bought on the Friday? Or must you always have sold at least the Friday before and been homeless for a week?
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Heh for Octo.
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That’s a good question pie, I guess that must be a risk here. It also causes a massive spike in demand for removal services.
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Yeah must be an easy 2 or 3 day week for removals guys
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