To pull out of our house purchase last minute - WWYD?

[TheVeryHungryDieter]

We've been trying to buy a new house for nearly a year. It's taken so long because there were a series of delays. First we tried to buy it while we rent our flat out - but the mortgage valuations came back seriously low (on the new house) so we couldn't get finance necessary to buy it. So we needed to sell ours and that's been a problem- we were already on the market for ages without an offer, then the first buyer pulled out after a couple of months and the second one has taken ages to get in gear, but it finally looks like we will be ready to exchange by the end of this week.

Throughout all of this the seller has held the house for us, including turning down another increased offer from local people (we are moving out from London). And we encouraged them twice to go after another buyer when it looked like we couldn't follow through. But in June once the legal work was underway the report on title finally came through and it appears we'd been misled about the possibility of getting planning for an extension. I called the council who confirmed that planning consent wasn't likely to be granted, and we'd pinned our dreams on this. It was a large part of why we wanted the property. Part of the reason the surveys (we had four!) on the house came back low (all of them!) was that a lot of expensive work needed to be done on the roof, and if extending we wouldn't need to carry out this repair work as the renovations would cover it. And last week the sellers came back saying they wanted tens of thousands more as compensation for the delays. It has put me off a lot, if I'm honest. We said no and we haven't heard back since - we expect (expected?) them to pull out but we just haven't heard.

So to cover ourselves we went to look at a rental this weekend. Same road, closer to schools, closer to station and already extended so we wouldn't need to. It's perfect for us. And the kitchen, omg, it's stunning. I desperately want to live in it. A mortgage would be much cheaper than renting for a year but with stamp duty so high (south east house prices, arrrgh) I don't want to make a nearly £40k mistake on somewhere that's not perfect. Especially if we head into recession post-Brexit and can't sell it easily if we hate it/lose jobs. But I feel like I've basically wasted a year of our seller's time, and very guilty. We've all put so much time and money in to this. WWYD?

[PurpleWithRed]

didnt it occur to you the house was massively overpriced when the second survey confirmed the low valuation of the first? The sellers must have thanked their lucky stars you didn't pull out or reduce your offer by £100k after the first survey.

Pull out, rent, look for somewhere to buy while you are renting in the area. And if a survey comes back low believe it.

[BalloonSlayer]

What whois said. They've hung on for you because the house is overpriced but it didn't bother you. Hence them now asking for more money - they think you will cough up because you want their house so much you will pay over the odds for it in the first place.

[GloGirl]

RUN AWAY

They want 100k more for it than it's worth and they want to bully you whilst you overpay.

Rent

[LizzieMacQueen]

I wonder why the house you are considering renting (on the same street) HAS been allowed planning permission and the one you were buying hasn't. I'm just being nosy as I have a perverse interest in these things.

[HoneyDragon]

They refused other offers as they thought they were laughing getting a buyer prepared to pay 100k over the property valuation ....god knows how much more work it needs.

Run for the fucking hills.

[NamelessEnsign]

There seems to be a lot of back and forth here, but ultimately you shouldn't buy the house out if obligation and if it isn't what you need. You could be stuck with it for a very long time!

[TheVeryHungryDieter]

Lizzie I can pm you if you are curious but it's a specific issue and maybe a bit outing.

[SweetPea79]

You can search planning permissions online, I do this as a matter of course before even going to view a property so as not to waste mine or the agents time. You just need to know the council that covers it.

Worth bearing in mind for future properties.

[sparechange]

They are tying their luck with you big time!

You were going to pay £100k more than the house is worth, which if you are only paying £40k of stamp duty, must be a HUGE percentage of its asking price. And now they want more even though all the economic data says at house prices have fallen since Brexit?

run for the hills.

[TheVeryHungryDieter]

Yep, I know that now! The council in the area we are buying has uploaded online records that go back much further than where we live now, as I've had difficulties getting copies of slightly later records for my own buyers - having to go in person to the council offices and pay for printing them, etc. That's partly why I didn't think it would be that easy!

[TanteJeanne]

Pull out.
It's ok to be manipulated by guilt to put 2 quid in a charity tin but don't be manipulated by guilt about making a 20 year financial commitment.
It's not bad manners to pull out- it's the long winded, tortuous nature of the house buying/ selling process.
In life, we will all probably experience both sides....

[fuctifino]

I would pull out on the grounds that I wouldn't pay more than the surveyors valuation.

[Finola1step]

Pull out.

The house is over priced. They know it which is why they were prepared to hold out for you to be ready. You're London Money in their eyes. Hence the attempt to squeeze out more.

We pulled out the day before the sellers wanted to exchange. Long story short...they took ages to sort their finance, meanwhile we looked further into the build quality of their extension, paperwork hard to chase, lots of unanswered question, problems with drains. They tried to bully us into a quick exchange and completion. We walked.

Best decision we ever made.

[JakeBallardswife]

Pull out, it happens. It's unfortunate but it does .

[LizzieMacQueen]

Thanks, no PM required, I was only being nosy.

YANBU to pull out.

[moggiek]

Pull out, and don't feel guilty about it. Enjoy your little ones, and take care of yourself. That's all that matters, really.

[mynamesnotMa]

What are your reasons for wanting to continue with the purchase?

[TheVeryHungryDieter]

Mynamesnotma at this point really only to get out of our current place and have somewhere to go! It's a nice house, it would be fine for a few years. It has a lovely garden and is affordable and all that. We could probably do SOMETHING with it, just not the bit that we had originally planned.

But I feel a bit like... I dunno. We had a list of girls' names picked 4 years ago only DS was a boy, and by the time DD was born in 2015 they didn't feel right or comfortable anymore so we went with something else and never regretted it. Nothing wrong with it but it just isn't right anymore. And we'd have to do the repairs we'd thought we wouldn't need. And we've seen somewhere that's just better, really.

[TheVeryHungryDieter]

Actually myname I think that's probably been one of the most helpful posts on the thread. When I think about going through with it I only feel dismay and a bit disappointed. That's pretty clear.

[Scrumptiousbears]

Don't forget any other buyer would encounter the same problems. They would also find it over priced, most people would want to extend at some point and they'd find that out too plus the roof issue.

At the moment buyers are quite happy thinking all is ok and they have gotten away with telling you some porkies and to chance their arm they as you for more money.

I'd pull out. To buy something as expensive as a house that doesn't meet your needs and you can't make it meet your needs is just stupid.

[ElsieMc]

I worked in conveyancing for years and although not science, purchases that meandered on and on very rarely completed. There is too much doubt going on and in your case red flags are waving that absolutely cannot be ignored.

Three surveys have warned you you are paying too much. Purchases would fall through over £10,000-£15,000 shortfall, not £100,000. That is why the sellers have held out for you. No other reason.

You cannot extend say the Council, the ones who grant permission. It does not matter that someone else has one, how do you know they have the correct permissions?

The roof needs work, expensive work.

The sellers have tried to get you to compensate them for the wait - they have no legal recourse here - they have lost the gamble because you have said no.

They are doing you no favours, pull out now, it doesn't matter about the fall out. The worst case scenario is that you have lost three valuation fees and will have to pay your solicitors.

Renting, whilst expensive, buys you time and a safety net. Pull out today and go rent the other house before it goes.

[Mouikey]

As a planner, you've now (at last!) listened to the right people! We're not ogres and are willing to help and give correct advice (although it's something you may have to pay for - yep even through the council). If the house had a refusal for the project you want to do, walk away otherwise you will spend a lot of money trying to get permission! With regard to the other property that has done the work as others have said it may not be that they even got consent!!! As an aside I've never known a planning authority to change a reason for refusal once it's been granted!

I wouldn't feel guilty about walking away from the purchase you need to do what's right for you and that property isn't right! If you find another house and want to extend talk to the planners first and don't tell the owners - you can get this information as a matter of public record and often owners will see an opening to ask for more cash!!!

[fuctifino]

One way to look at it is if the vendors rang you today and said they'd decided to sell to somebody else, would you be gutted?
If not, walk away.