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What would you do if you were the vendors?

6 replies

Bringmewineandcake · 03/09/2019 14:33

STBXH put an offer in on a shared ownership house at the end of May. It was on for £100k for 50% share. He originally offered £94k which was rejected, then rashly increased to £100k when the EA told him there was someone else interested. Offer was accepted.

For various reasons things have dragged on. The housing association have only just accepted his application and everything seemed to be going ok at last. However....the mortgage valuation has come back this week to say the house is only worth £176k in total. STBXH has therefore had to reduce his offer to £90k otherwise he'll have to pull out.

The vendors are buying a new build and have allegedly been under some pressure from the developers over the last couple of months to get contracts signed or they will lose their plot.

Obviously there's no way of knowing what their decision will be until they make it, but what would you do in their situation? Say no and re-market it? Accept the reduced offer in order to not lose the new house? It's a shit situation all round.

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Isohungy · 03/09/2019 15:10

To my knowledge the vendors cannot sell for more than the HA value it at.

newtothebabygame · 03/09/2019 15:16

If they reject his offer and relist the property, the issue they will have is that the same thing will happen with every mortgage valuation. This means that to sell the house as the price they want, they will have to hold out for a cash buyer, and realistically no cash buyer will want a shared ownership.

Bringmewineandcake · 03/09/2019 15:52

I suppose the other option is they withdraw it from sale altogether, lose their new build but wait to see if the market picks up again and the house increases in value.

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newtothebabygame · 03/09/2019 16:06

The ball is in their court, it's all dependant on how much they want their new home and if they can afford it when taking less for their current property.

Fingers crossed for your ex (and you).

filka · 03/09/2019 18:16

Seems like STBXH must be trying to borrow an uncomfortably high percentage of the value, if the mortgage valuation is such an issue.

Newbuild developers will actually hang on for quite a long time once they have a buyer on the hook. It's only once the development is getting close to being sold out that they might actually cancel someones deposit, if they have another buyer (more) able to complete. At least, that was my experience when I had a timewaster buyer and had to remarket.

Bringmewineandcake · 03/09/2019 21:03

That's not so much the problem, filka. It's that he hasn't got a spare £12k in cash to make up the mortgage shortfall, nor should anyone be paying more than a house is worth.
Nothing back from the vendors yet...

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