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Original poster

Feeling bullied, should we pull out?

300 replies

DobbieFreeElf · 29/12/2020 14:52

I’ve come here to get some opinions from people removed from the situation.

We had an offer accepted on a house in September, the house fits our, very specific, needs and although we would like to improve it over the years (new kitchen, bathrooms, maybe extension) we would be planning this to be a home for 20 years.

The house is an adjoining paddock, a couple of acres, which is ideal as I have always had horses (prior to kids) and when the little people are bigger I would like to get another.

We were all set to exchange on the Monday before Xmas when our solicitor calls to say that the sellers want to impose an Overage clause (also called uplift/ clawback) on the land. In essence this means that if planning permission is granted on the land we must pay a percentage of the increase in value to the sellers. We felt completely blindsided as we had never even heard of this before that date.

Aside from potentially building a couple of stables in the future we have absolutely no plans to develop the land. (Why would we, we love the house because it is rural).

I can’t decide if we should cut our losses and walk away now.

Now the seller is threatening to put the house back on the market next Monday. We feel backed into a corner and bullied.

Initially we were dead set against the overage (especially as it was dropped on us at the 11th hour) but having had time to look around at what else is on the market (nothing that meets our needs), thinking about the 15k extra we will have to pay on another property (as it’s doubtful there would be a house we would complete on before the SD holiday ends), the £2k+ we’ve already spent on conveyancing, searches, surveys, inspections etc. and many other factors we had decided that we would be open to the overage (as long as we negotiate terms that we are ok with)

Are we stupid, should we walk away, is this fate giving a massive warning sign...

OP posts:
LonnyVonnyWilsonFrickett · 29/12/2020 15:11

I hate this kind of thing, the timing of it shows it up for what it is - pure greed.

Life is full of twists and turns - jobs, relationships, illness, families, opportunities. I would never accept something like this which would make it difficult to sell my house. I appreciate you don't anticipate selling, but as I say, life is not predictable in that way.

Reedwarbler · 29/12/2020 15:11

If the overage clause lasts that long, would it be passed on if/when you sold the property? If so, it might be a barrier when you sell. It would really put me off a house. I think if the clause was, say, 10 years, I could live with it, but 40 is just plain greedy. And does it just cover development on the paddock? What if you want to extend the house itself?
They sound like grabby, time wasting shits. I can't see any other purchaser going for this arrangement. I know it's horrible for you but I would tell them to get stuffed. Surely you will always feel like the previous owner still has control of his property, even though you've bought it? That would make me so angry.

mrscampbellblackagain · 29/12/2020 15:12

I bet one of their adult children suggested this with their inheritance in mind.

How likely would planning be granted on a paddock realistically, would be very little chance where I live as AONB.

So in that case I may consider it.

Original poster
DobbieFreeElf · 29/12/2020 15:12

That’s good advice @BlackKittyKat I just didn’t know who I could ask about this. Their EA is hammering on about them receiving “multiple greater offers” for the land and how it will benefit us all in the future. If it is a sound financial investment then that should be considered too but I can’t help be cynical and think the EA is just trying to tell us what a great deal we are getting

OP posts:
Honeyroar · 29/12/2020 15:12

You’ve answered some of my questions. I’d tell your solicitor to ask for 25% over 20 years and possibly a slight reduction in price too. Make them at least give a bit. If not I’d walk away. They won’t be able to sell it as easily with this if you pull out.

Out of interest is there any chance of developing the land? Is suburbia getting close to the land? Have there been new builds in the area?

AN85 · 29/12/2020 15:13

Seems unfair especially when landed on you at the last minute. If the house is worth it I’d be inclined to negotiate a lower % and length of time. Especially if your not actually planning on developing but you never know your circumstances might change.

ChrimboCalling · 29/12/2020 15:13

I'm sorry they've put you in this situation. Good luck with making a decision. They're not nice people.

Mimitoo · 29/12/2020 15:14

Have to agree with previous poster, sounds like they stuck it on to see what they can get and have now realised they can get more. You don't know what else they may suddenly demand and you could end up losing out anyway.

I'd go back with reduced offer (e.g 10 years and 20 %), and see what they say or I'd just be pissed off and walk away. Hate how people treat others when it comes to property!

Original poster
DobbieFreeElf · 29/12/2020 15:15

@Reedwarbler you’ve hit the nail on the head. I’m angry. Furious in fact. If we had known about it 3 months ago we would have had time to decide if it was something we could live with or find another house. It makes me feel so sick that these type of people are in such disregard of anyone but themselves.

OP posts:
NeilBuchananisBanksy · 29/12/2020 15:17

Are you getting a mortgage op? This is likely to affect the valuation- and the lenders would need to know about it.

What has your solicitor said? It's very greedy at this late stage.

Bigpaintinglittlepainting · 29/12/2020 15:19

You need to negotiate, they won’t expect what they’ve asked for. It’s quite common round here and I guess it’s to stop developers buying up land and selling it on

Original poster
DobbieFreeElf · 29/12/2020 15:20

@Honeyroar

You’ve answered some of my questions. I’d tell your solicitor to ask for 25% over 20 years and possibly a slight reduction in price too. Make them at least give a bit. If not I’d walk away. They won’t be able to sell it as easily with this if you pull out.

Out of interest is there any chance of developing the land? Is suburbia getting close to the land? Have there been new builds in the area?

Thanks @Honeyroar. The land is about 3 miles north of a market town. You raise a good point as I just said to my husband, does this mean that the current owners anticipate building up of the countryside surrounding the property. In which case we definitely wouldn’t want to proceed.

Nothing came up in the searches about new builds in the in the area.

OP posts:
Candleabra · 29/12/2020 15:21

Pay no heed to the estate agent. They just want their fee, so want the sale to proceed. It's you that's left with the situation afterwards.
Either some serious legal advice or walk away. I'm a big believer in trusting your gut with stuff like this. A house move should be exciting, not fill you with dread. Obviously there are always issues with buying, but to pull this so close up exchange - the trust is gone.
You will find something else, something better.

BenoneBeauty · 29/12/2020 15:22

I wouldn't proceed on this basis at all. If you really love it, then renegotiate the terms and also reduce your overall offer as it will have devalued the property and may cause you issues should you want to sell within the overage period (whatever that ends up being). Good luck Op as it's a shitty thing for them to have done.

Atalune · 29/12/2020 15:22

Counter and be prepared to walk away

krustykittens · 29/12/2020 15:23

Pull out, OP, or threaten to. We had an owner try this on us, we told him to fuck off and walked away. He came grovelling back as he found the place hard to shift. I know a few people with equestrian properties, no one has such a clause. You would be mad to allow someone to keep a financial interest in your property long after they sold it to you. It is nigh on impossible to get change of use from agricultural land to housing in very rural areas and I would assume ant interest they have had in the land alone is from other Horsey people, as small parcels of land can be hard to find. They will lose out a lot more if they let the house sale fall through, especially as the market is predicted to slow down in the new year.

Candleabra · 29/12/2020 15:23

Nothing came up in the searches about new builds in the in the area.

Good point. This would worry me too. They may have done you a favour flagging it up now (though this wasn't their intention). Sometimes things happen for a reason.

Original poster
DobbieFreeElf · 29/12/2020 15:23

@NeilBuchananisBanksy Mortgage is for the house, we were already planning to buy the separate land with cash and the bank are aware of this.

I’m aware having an overage can significantly reduce companies willing to provide a mortgage. This is one of the reasons I would want the term reduced. I wouldn’t want this to hinder us if we did decide to sell.

OP posts:
BlackKittyKat · 29/12/2020 15:24

The estate agent is acting for them, not you, and so they will tell you anything to get you to continue with the purchase. You need to go to another agent. There are a few that specialise in property with land. I would suggest you call round and ask.

Your solicitor should also be able to help you on this.

I would find it difficult to move past this personally and would tell them to do one.

I'm no expert, but from what I've been reading there is likely to be a downshift in property prices after the stamp duty window ends. You may have to wait 6 months or so to find a similar property but the chances are you can negotiate down the price so you wouldn't lose out.

I think these sellers are playing on your fear of missing out. I would get your poker game face on and play them at it.

It's your future at stake here. Think long term!

LIZS · 29/12/2020 15:25

There may be no planning applications in yet but you heed to check for any Local Plan or consultations pending. Do they have children, could this idea have originated from them? Alternatively they could apply for pp themselves and sell the land on to a developer but that may compromise the value and saleability of the property itself.

Imiss2019 · 29/12/2020 15:25

I wouldn’t listen to the estate agent if there a multiple higher offers on the table he doesn’t need to push you to carry on the sale.

I suspect the owners knew they were going to pull this stunt right from the beginning but left it until the last minute so as not to put buyers off and hope that you are too invested to walk away.

I’d walk away on principle and the potential it has to cause you problems if you sell at a later date.

Original poster
DobbieFreeElf · 29/12/2020 15:26

They’re saying if we don’t agree something by next week then it’s going on the market 10% more than it did in august.

If we do walk away I hope the housing market blows up in their greedy faces

OP posts:
Original poster
DobbieFreeElf · 29/12/2020 15:29

@BlackKittyKat I think I need you to sit on my shoulder to strengthen my resolve!

The whole thing has been mad much harder by our solicitor being shut since last weds until next week.

OP posts:
Imiss2019 · 29/12/2020 15:29

I’d go silent on them for the rest of the week in that case, no communication at all, no counter offer. Let them sweat and see if they fold first once they realise your not being bullied. If not tell them thanks but no thanks

Santaisironingwrappingpaper · 29/12/2020 15:29

Walk away op... Cf at the highest degree.