Pull out of property purchase

[ChampagneLassie]

We’re in process of buying the house we rent. And now our ideal house has come to market. The main difference is cost. The house we’re currently buying is 5 bed huge garden. And is 20% more expensive. Whilst we can afford it that obviously comes at a cost to other lifestyle choices. I posted before as it’s more than we wanted to spend but we’ve been looking for 2 years and not seen anything we really wanted. Until now. It’s ideal, it’s 4 bed, a decent sized garden. I actually prefer the look of it, wooden floors throughout, nice period features. And it’s 20% cheaper. That saving would make such a difference to our lives.

But the dilemma if we pull out our current landlords will obviously be very disappointed. I’d offer to cover their legal costs and be hugely apologetic. Do you think that would be sufficent recompense?

we’re about 1-2 weeks away from exchange.

i worry about bad karma. I worry that if we switch and the new property perhaps the sellers pull out / change their mind (they’re looking to downsize), it would serve us right. Thoughts

You shouldn't buy a house you can't afford comfortably, or don't really like.

My concern in your situation is that you have no guarantee that you'll get the other house.
And even if you have an offer accepted, things could fall through, and then you end up with no house at all (including your rental because if they landlords want to sell, they might need you to leave).

It depends how risk adverse you are I guess.

OP don’t be a people pleaser these people aren’t your friends. In 10 years you will have nothing to do with the landlord.

Channel your inner mediocre white man energy and be selfish - what us best for you

Do you know much about the situation with the 4 bed house eg is there an onwards chain, have they had an offer accepted on a house they're selling

If needed would you be able to rent somewhere else to bridge the gap if your current landlord managed to sell quickly?

The grass is always greener somewhere else though. There comes a point where you simply have to stop looking and go with the best fit.

More space is always an advantage . Also, as you would be effectively staying put you dont have to fork out for removal costs , endure the upheaval of moving home etc.

You have essentially given them notice on your rental to end in two weeks. You cannot just squat until you are ready to move out.

But have they actually given notice on the current lease?

Have you actually been to view the other property?

That might seem like a mad question, but I do see some very mad posts on here.

your current situation seems like a bird in the hand to be honest, much less likely to fall through than anything else. But obviously 20% is massive. So that’s the most important thing.

What’s the guarantee you will get the other house?

YANBU.

It's awful for the sellers of the more expensive house, but with so much at stake - you have to do what is best for you and your family.

I've done similar in the past and it makes you feel awful. But I don't regret doing it.

I think you would be mad to pull out. Your buying direct from landlord, its a done deal essentially. No moving, you know the house. No way would I be gambling that after 2 years of looking.

OP - I posted something very similar on here many years ago. I got absolutely roasted and told I was ruining lives. But if we’ve made that move it would have had massive negative impacts later on. Years later someone did the same thing to me - pulled out the day before exchange - twice in fact (they were in and out and in and out). We ended up in a better house for us due to them pulling out.

So what im saying in these things all work out in the end. Do what’s right for you.

OP, of course you should do it.
The reason is that you are stretching yourself too much financially and the house needs work you won't afford.
Be honest to them, its too much of a stretch.
Do not offer to pay their legal bills either.
These things happen.

This is a really interesting point
I don’t know how it works legally

Let’s imagine it isn’t taken as valid notice

As soon as the OP pulls out of the purchase, she will get served notice herself.

That might be enough time to buy the other place but if not, then there’s interim accommodation to pay for.

It's up to you, of course, but you need to weigh up the risks of the new purchase falling through, or hidden expensive survey findings, or a bidding war, and dealing with all that while knowing your tenancy is coming to an end, with a landlord who owes you no favours. I would only pursue this with a strong back up plan in place.

Would you be saving money regardless by having lower mortgage payments vs rental costs?

Massive risks going for the second property.
You could end up homeless and need to spaff money on a new interim rental, including deposit and moving upheaval.
The one you're in is (presumably) going for a good price and it's as good as yours , the one you like will be liked by others and you don't know if you'll get it. Plus your landlord will want you out ASAP. They'll be pretty pissed at you.

You could stay where you are but as owners, no removal upheaval, and then spend next couple of years eyeing up for amythj g better, possibly sell up, downsize to four rooms and have money in hand.

Your whole liking for the 4 bed strikes me as way too impulsive. when house buyimg it's usually true there'll be another even better one at some point .

Your approach lacks patience and long term thinking.

Legally, of course, this is correct, but as a landlord, I’d be thoroughly pissed off at being so close to exchange and a seemingly reliable buyer pulls out 2 weeks before exchange. However, these are the risks landlords face and you have to do what is right for you, not the landlord.

I offered on a house earlier this year then pulled out, but within several days. I felt terrible. The house has only just sold. I had to do it, it just wasn’t, on reflection, the right house for us and would have been a huge mistake. Don’t make a mistake because you feel bad for your landlord.

If you could guarantee you would get the 4 bed I would say go for that. However that isn't guaranteed (e.g. someone else may offer more, including at the very last minute) so it depends on whether you are willing to risk getting neither house.

Make the offer on the new house and if it is accepted, go ahead on the basis that exactly the same thing might happen (they pull out week or two or less before exchange). And you'll probably have no rental to live in as you'd have given notice.

This is why the Scottish system works well - an offer is legally binding.

Listen!

This is not shady, or in any way underhand.. you haven't exchanged contracts, you have no responsibility to the landlord other than your moral duty to not be a shit. You aren't being a shit! If you want this house offer on it! LIve your life. Someone else will want the house. They will be your neighbour. they will be very happy to have the house....

It doesn't sound like you should be buying tje house youre in regardless, after reading your updates. I don't know why youve let it go this far? Anyway, you can't go ahead with a purchase you don't think is right so let your ll know asap.

Isn't it highly unlikely that the landlord will be able to quickly remove you given the current law? They will also be aware you could start playing silly buggers and stop paying rent and not allow viewings. They will of course be pissed off but they would be silly to retaliate.

An offer is not legally binding in Scotland until missives are signed. This can be 1 or 2 days before entry date.

This was my own first thought

Everyone goes on about whether buyers are proceedable, but in a case like this I'd want to know if the sellers of the "other house" are before making any decisions
Is it in a chain, and if so how many ... are they really comnmitted to selling or just playing at it ... are there likely to be any red flags from the searches and so on

Buying the house you currently rent is almost a dead cert to go through unless you change your mind. Buying another property on the open market puts you at the mercy of the vagaries of the house buying process. If the other property is not chainfree, I would be concerned about burning your boats.