AIBU? To pull out of selling my flat though it'll cost me thousands?

[Bells3032]

Backstory - I bought my flat four years ago. Six months later met my now husband and eventually moved into his flat. at the time i was very ill and we decided to rent out my flat before deciding what to do with it. I bought my flat for £305k - it's relatively small, first floor floor (London subs) but it's nice enough but it's on a lovely development with gardens and playgrounds etc

Now we are looking to buy a house and trying to sell the flat in order to pay for it. Originally we put it on as a tenanted flat and only had one viewer who offered 287k for it. I recognise flats aren't selling well and agreed including the excellent tenants and all the furnishing in the deal.

8 weeks later mortgage offer and survey done and we finally hear from their lawyer asking us if the property is vacant. we said no it's being sold with tenants in situ. they said no they've asked for it vacant.

A LOT of back and forth and several stories from a very confused agent firstly saying they want the tenants but want it on a residential mortgage so want us to say it's vacant when its not (something that i am not willing to do as have a job that depends on me having an impeccable record) and then says they want to live in it cos they love it but thought they'd take the tenants on and evict them themselves to make the sale easier.

I get pissed off and put the flat on the market but it's not the best investment as far as BTL is considered. So after a while i agree to sell to original buyers after they were calling the agent in tears - they are first time buyers and just made a mistake please please reconsider - and agree to sell with vacant possession and that they have to get a new lawyer as the first one didn't touch the case for 8 weeks. I have given my tenants notice and have helped them find somewhere else and they are leaving on 26th October.

Two weeks later i don't even have the name of the solicitor and after several chases i finally get one. Two weeks now since then and their solicitor hasn't even confirmed that they are acting for the buyers despite several chases from my lawyer.

My agent says issue an ultimatum. But the problem is flats are not selling well in my area at all. places that were selling for 50k more than mine when i bought it are listed at 300k and some that were selling for 20k more than mine are listed at 280k. So it's gonna cost us a small fortune if they pull out now. Plus i'd need to piss off the tenants to have more viewers etc round.

It's been over 3 months since the offered agreed and we don't even have a confirmed solicitor yet. i get we can't exchange until the tenants are out but want everything done to exchange the day after they move.

Do I issue an ultimatum and if so how much time do i give them, just pull out and be done with them or keep going?

Thanks

I would tell them that you need the solicitor confirmed within the next week to demonstrate that they are serious buyers. As mortgage offer and survey are already done, it should be reasonably easy to be ready for end October.

Pull out, they are already messing you around so it could cost you far more in legal fees later down the road. It may take some time but it will eventually sell, don’t short change yourself just to get rid of it. A ground floor flat near me (London too) recently sold for the asking price.

The tenants are being very understanding allowing you to have viewings whilst they are there, I feel for them most in this situation

@UnfinishedSymphon I agree. they have been brilliant and i feel bad for them too hence initially wanting to sell as tenant in situ. Unfortunately due to the excess stamp duty implications I can't keep the flat running and buy a new home - the excess stamp duty alone is equal to about 15 years of net rent from the flat which already doesn't really cover its costs. So i don't really have a choice.

*gross rent

What has your agent done to help things move along? Some agents in this situation, in my experience, would contact their solicitors to ask them where they are at and encourage them to get on with the searches and issuing the documents such as the standard enquiries form.

This would be a step that could be taken before issuing an ultimatum, especially as you are hesitant about an ultimatum out of fear of losing the sale. But bear in mind that your fears based on the (reported) going rate for other flats could be exaggerated or misplaced. Maybe a few other flats that you've seen are priced low by agents to get quick revenue or your flat commands a premium because it is better or more desirable, at least to these buyers. As against that, there is no guarantee that if your flat is being sold at higher than going rate, that the buyers won't find out that they may be overpaying, and decide to revise the offer.

I thought you had to give 6 months notice now? Obviously if tenants are happy to move out of their own accord then it's not a problem.

The rules changed after I gave notice (literally a week) but I've given three months and they're moving out after 2 because they found somewhere they liked

I think you can consider you have lost your buyer.

I’d do everything you can to get the sale back on track. Flats are not selling. We’ve got two London flats on the market - one has only had one viewing, the other two, and no offers despite reducing the prices.

I would issue an ultimatum, and speak to your agent about getting it back on the market pronto