Renegotiate agreed price

[LifeExperiencedNewbie]

We are in the process of buying a new build flat with HTB from a small local developer in North London. Price agreed two months ago however we've been struggling to get a mortgage. We are now in a position to find a lender but DH thinks property prices (and specifically new build) are 10% lower than two months ago. I'm worried to lose the property but DH is convinced that the closer we get to Brexit the better the market becomes for buyers.

Has anyone been renegotiating an agreed price? Can we rely on the lender's valuation to see whether value has changed?

There has been a great deal in the news recently regarding evidence that buiders are hiking the price of properties sold to purchasers using HTB. Can you find prices of similar properties in your location without HTB to give you leverage to renegotiate?

Yes. Without Help to Buy we would be paying 15% less but not for a new build. However other developers with help to Buy offer better discounts- 10% and SDLT and that's what had DH changing his mind.

Is it ok to open the negotiations at this stage?

Interesting topic OP. New build prices never fail to shock me. Thrown up for quick cash I believe

Have you had a valuation survey done by an accredited surveyor? You need to back up your claims to get anywhere.....

Only the valuation by Help to Buy and the previous lender (Halifax) which came at agreed price, two months ago. New lender will be TSB and they haven't sent a surveyor yet

Hi op

I'm about to attempt to renegotiate our agreed price on house we are trying to buy as survey has shown up a lot more roofing works than we'd anticipated and valuation less than we paid......no idea if it's going to work but I'm willing to try! X

Good luck thinking cap, sounds like you have a good reason too giving the survey results. We are buying a new build so nothing beyond a short snagging list

We have just had our survey back which has revealed a few issues which will probably cost approx £10k to put right.

We absolutely had our hearts set on this property but this additional cost breaks our very tight budget.

I know that the done thing is to try and renegotiate the price but we are terrified that we could lose the property as the agent has told us that the seller already thinks we are getting a bargain.

We have found this article www.quittance.co.uk/conveyancing/advice/buying-a-property/what-should-i-do-following-a-bad-home-survey-report. It suggests we should get written quotes from builders to show to the seller. This would mean getting builders to go round to their house and I am worried this could set them off.

What should we do? We are also selling so time is a factor.

From what you say you cannot afford this property unless you get the price down at least sufficiently to afford the necessary work. Also bear in mind that house prices are falling - you don't want to end up with negative equity. It sounds well worth presenting all the evidence you have plus builders' quotes if the vendor is willing to let them assess the work required, and drive a hard bargain. At worst they can say no, but you may at least get something off the price.

Thank you - you are right - we just need to toughen up. We will ask a few builders to give us an estimate by email and use this with the seller.