Vendors pulled out, now what?

[AsMuchUseAsAMarzipanDildo]

No need to reply really. I just need to rant into the ether.

Our offer was accepted in July... and just as we were finally ready to exchange, the vendors have changed their minds and pulled out. We had a buyer for our house who was pushing for super fast completion. The vendors had originally said they were happy to go into rented to meet our timeframe - only to change their minds. In the end we were the ones who had to break the chain, suck up mortgage costs (as could only port with simultaneous sell/buy) and go into a holiday rental with our 3 year old for what was supposedly a matter of weeks. She’s now 4, we need to register her for school and we’re up shit creek without a permanent home, mortgage offer expiring in February, stamp duty, equity on our previous house that I dread leaving in a bank come Brexit and no bloody other houses on the market! Fucks sake.

Oh no!! Why did they do that? We’re in similar situation except we’re pulling out due to no paperwork on massive building works. Are your jobs stable? Can you find a 6 month let? I was also wondering what to do with all our equity. Poor DD in gcse year plus we have pets.

Spread the equity across several banks. I believe each bank only covers you up to around £75k if they go under.
You still have time to catch the stamp duty holiday. Have you leafleted? Some sellers might be waiting until after Christmas and lockdown to put it on the market.

@DianaT1969

Spread the equity across several banks. I believe each bank only covers you up to around £75k if they go under. You still have time to catch the stamp duty holiday. Have you leafleted? Some sellers might be waiting until after Christmas and lockdown to put it on the market.

Nope, that's not correct. You don't need to spread the proceeds across banks, you're covered for up to a million quid on the proceeds from a sale.

Oh God I'm so sorry. What utter arseholes. But at least you are now chain free which puts you in a good position.

I had vendors pull out at the last minute. I wasn't selling so didnt have to go into rental but it was so annoying and cost me £2000 in fees and surveys. I'd met them too. She apparently was reluctant to sell. I got payback when they eventually did sell it was for less than our agreed price.

@Pipandmum

I had vendors pull out at the last minute. I wasn't selling so didnt have to go into rental but it was so annoying and cost me £2000 in fees and surveys. I'd met them too. She apparently was reluctant to sell. I got payback when they eventually did sell it was for less than our agreed price.

How exactly do you get the payback if you didn't benefit from their sale?

At the moment there's protection on house sale proceeds of up to £1 million for up to 12 months.

www.fscs.org.uk/media/press/2020/aug/thb-coverage-extended/

After that its £85,000 per bank per person that's protected so you need to split it between accounts (and watch out for different banks being part of same group).

Sorry this has happened though at least your sale has gone through so you'll be in a strong position when it comes to buying.

Thanks for all the support and advice. They got cold feet I think - had lived in the house for at least 30 years. There’s been a huge amount of delays and feet dragging, then we were ready to exchange and I think they ran out of excuses. As you say though - thousands of pounds down the drain and I have no idea how you apply for a mortgage when you’re in a holiday cottage. There’s absolutely nothing coming on the market in Devon at the moment - understandably, people are quite enjoying living in the countryside at the moment.

My worry is about having that much money in a current account - it feels vulnerable to phishing, card cloning etc. Also (puts tinfoil hat on) quite worried what will happen with Brexit in the New Year - what if we end up with runs on banks, Northern Rock etc and no bailout???

I don't think the amount makes it any more vulnerable, as long as you've been responsible with security the bank covers fraud.

I very much doubt there'll be a run on banks with Brexit but banks will always be bailed out otherwise the whole financial system collapses. Personally I would split the money in different accounts to be within the £85k per institution rule as the rule for larger deposits could change at any time (was 6 months) and if you aren't monitoring it you could get caught out. I had £35k in Icesave when it went under but I actually did quite well out of it - got the £35k back plus 6.7% interest - was really amazed the government paid out the interest as not a suistainable interest rate level and also half of the £35k was supposed to come from Iceland.

I think you would just apply for a mortgage normally - its probably like if you are renting, they may just want references saying you've paid.

If you're worried about phishing I thought THB applies to saving accounts too? I'm not sure about this so please check first.

Being chain free and not a FTB puts you in a very strong position. You've already done the suffering to be in this position so now you should take advantage.

If I were you, I would be visiting the auctions, interviewing builders/decorators and making some very cheeky offers.

Personally I LOVE being in the take it or leave it position.

Does it have to be Devon? Would increasing your search radius get you a bargain?

That's absolutely rubbish for you.

It could put you in a great position when you do find something you like though.

Which part of Devon are you looking in roughly? Are you all the EA books so that you get potential early access to anything that does come on?

Any idea how you go about buying at auction @SkedaddIe? Can it be done by someone without experience in property, renovation, etc?

Yes @thelumberjack because not every property at an auction is a 'fixer upper'.

There's a lot of perfectly good condition properties or cosmetic work only properties which just need to be sold quickly. OP might even be able to buy a property pre-auction or one that failed to meet the reserve.

OP is in a position to buy quickly and is an experienced buyer. The hardest part of the process is the upheaval of temporary accommodation but OP has already suffered that. Plus OP has a decent amount of equity for a healthy deposit and a mortgage agreed in principle so I'm guessing affordability shouldn't be an issue. I doubt very much that they would need an expensive bridging loan or anything complicated like that but they may want to go through a broker to make it easier, as they might need to be in the position to exchange the day after bidding and will need proof of funds.

The first thing to do is find the local auction houses and just go along to get a feel for it. There should also be loads of brokers leaflets and people willing to give advice.

I think if I was in your position in the short term I would focus on getting a decent rental property which you can manage in over the winter. Don’t look at rentals as being your forever home just get something which is warm and comfortable and from where you can apply for schools, if necessary. I would also follow the advice on this thread and keep an eye on the property market as he will be in a strong position, so try to see the positives in that. But it will make things a lot easier if you are living in a decent rental house in the meantime and you don’t have to rush. I think you would ideally try and get your offer accepted and exchange before your mortgage offer runs out, but hopefully your mortgage could be extended if necessary.

@AsMuchUseAsAMarzipanDildo

My worry is about having that much money in a current account - it feels vulnerable to phishing, card cloning etc. Also (puts tinfoil hat on) quite worried what will happen with Brexit in the New Year - what if we end up with runs on banks, Northern Rock etc and no bailout???

I’d open up a new bank account, quite possibly in a new bank and have no online banking or card associated with it. That would reduce the risk of someone getting access and emptying the account?

Thanks @SkedaddIe.
I had assumed they would be 'fixer-upper' type properties being bought by developers.

We elected to go into rented after selling. Viewing and travelling around areas we are considering is just too problematical in a pandemic. NS&I is a good idea for sale proceeds. It's as safe as our Government!!!
Instant access to bag a bargain but crap interest alas.

And keep an eye on properties returning to market. Put your name down with the estate agents active in your area as a ‘cash buyer’ (you’re not technically, but that’s how estate agents like to dress it up in my experience). You’ve had your misery and now you may get to benefit from someone else’s, ie if a chain is about to collapse you could end up with a bargain.

And keep your offers sensible, don’t just pluck a figure out of your bum. Try to base it on the details, but without insulting the vendors property. For example I made the argument that a steep (but within regs) stairwell made a loft conversion somewhat inaccessible for my intended use at that time so I made an offer commensurate with a smaller property that was eventually accepted.