WWYD - continue with purchase or remain in rented?

[Champagneforeveryone]

We are close to exchange on our first house. However an issue has arisen with the property (confirmed by our surveyor and two independent specialists) This will cost IRO £4k to correct and has been given as a condition of release of mortgage funds.

The seller has flatly refused to contribute towards this work and we are unwilling to pay when there is no guarantee the sale will then proceed. The work is also necessary due to a degree of neglect / poor maintenance so I am even less inclined to stump up for it.

The seller has grudgingly agreed to drop the price by £1.5k, which makes very little difference to our monthly payment and still leaves us with the bill for the work (though it can be done in our own time) Our broker is in the process of putting in a second application, in the hope that this company will either not pick up on the work required, or will put a retention on the mortgage pending its completion. However with the rise in interest rates, our payments are higher (around £45 a month, so not Earth shattering but still...)

To add to the mix, our lovely rental property is now available as a long term let. It's more convenient in terms of DS's school (he will be going to uni in September so not a long term consideration) friends, and work for all 3 of us. We have lived in the area for the past ten years and are only moving away because we are priced out of the market (new house is around 15 miles away but in a significantly cheaper county)

The initial love I felt for the house is somewhat tarnished by the sellers attitude, plus I'm sceptical of what other horrors we may uncover due to poor maintenance. We know the house is dirty and unloved and that was fine, but I'm imagining all sorts of horrors now. However if we pull out and stay where we are, will we be priced further out of the market?

Any advice would be greatly appreciated, as DH and I go round in ever decreasing circles

Hopeful bump for any actual adults who may have advice

I think in your situation I'd stay where you are. Doesn't sound like your heart is in the move any more and I agree that there's bound to be loads of work as you uncover all the bodge jobs and neglected areas.

Can you make the decision, tell a friend or something but hold off contacting the estate agent for a day and see if you feel relieved?

No advice but another bump. The worry about being priced out is real thou!

Not to mention sinking £4k or potentially more with no obligation that the sellers proceed once you've paid to repair their property!

I’d still go ahead with the purchase. I’d rather have my own house and not rent.

Do you like renting?
Home ownership isn’t everyone’s cup of tea,
Do you like the area you are potentially moving to?
Do you have the funds to do the work that you think may be required?

I wouldn't pay for the work to be done either!

I think you are in a very strong position because you have another equally good option with the rental location etc, so I'd call their bluff, I'd state 4k reduction or I'll walk, and mean it.

In terms of being futher priced out, I'm not sure if that is the case or not. There is so much going on re food/fuel/energy prices etc that I don't think anyone can really say at the moment what the knock on effects may be

Id continue renting for a bit and keep house hunting. Your dream house may come on the market anytime.

I would rent as surely you could move further afield once DS goes off to uni?

It comes down to circumstances. I've just sold a house which needs work but it was factored into the price by the estate agent, if anything we settled for less than it's worth because we opted for a woman with no chain rather than the family who had property for sell (they said they could offer more but we took the slightly lower offer.

I think it's unreasonable of the seller to expect you to pay in this circumstance as there is no guarantee that the sale would proceed. It sounds as if the house has been sadly unloved and that you will discover other issues which may be expensive to fix.
You clearly love the rental property and area so I think I would pull out of the purchase, stay put until your DS leaves and then reconsider.

Thank you all

We've rented happily and successfully for years, until our previous LL needed the house back for family use. Where we are now was supposed to be temporary as it's originally a holiday let, however the owner has decided the hassle of holiday let's is not worth it anymore and would prefer the regular rental income. If we'd realised earlier that this was an option, we would definitely have stayed here for DS's sake.

We can afford the work, though it would delay our other plans. DH is a tradesman and I'm very practical and love a project, so I'm not daunted by other work that may need doing.

The poster who said my heart isn't in the move is completely correct. The move away was a compromise as that was the only way we can afford what we want. We've reconciled ourselves to it and have made the best of the opportunity we will have available, however this has definitely bought back all our initial misgivings

I prefer home owning rather than renting where possible but it doesn’t sound like you really want to move. Maybe it’s not the right house for you. I’d be tempted to keep resenting and go from there. What does your DH think?

Personally, I don't see 4k for whatever the issue as "that" huge. You can do work once there and then get sign off from mortgage company - I certainly had to with firewalls etc.

You could rent and then will have nothing at the end of it. Your choice. But you're just pushing it further down the road imo. And then may never be able to afford to do it.

I think there is every chance house prices might fall. So I wouldn't overpay. You don't sound too sure about this house. Maybe better to pull out.

What's the issue?

I disagree with another poster who said house prices are about to fall, and I'd probably suck it up to own a house in the current climate.

You sound happy where you are now that your landlord wants to let the house long term. Your vendor OTOH sounds awful. I'd stay put personally unless you are desperate to own your own home.

I don't think £4k is a deal breaker and they have reduced the price. When I sold my house I didn't budge at all in price when the survey came back with work to do - the house was discounted for the work and I was very clear I could not go any lower.

But you don't sound like you want to move now.

The market is rising fast so just be prepared for it getting harder to buy later.

Just remember, you’re buying the house and the current owners won’t be there so the bit you hate will be gone! £4k is minimal in house move terms but I can see it’s annoying. Only you know if you want to move though.

Thank you, this has been really helpful

I've had a message this morning from our LL asking about dates to show potential tenants round, fortunately (or not, depending on how you look at it!) I'm currently Covid positive so there's a natural delay already.

I'm leaning towards going ahead with the purchase today The seller is pushing for end of March exchange so hopefully things will start to move again and we will get some of our initial excitement back.

You say the issue in some part is due to poor maintainance/neglect. A potential red flag as I would wonder what else has not been maintained and covered up successfully to sell the property. 4k may not be a lot to some people but it could be the thin end of the wedge. I personally would walk if you are happy in your rented property.

helebeth it's damp, probably largely due to blocked gutterings and down pipes but also likely age related as well. Also the property has been vacant for around six months so no heating on throughout the winter months.

There's an air of neglect to it and as I previously mentioned, it's very dirty. Nothing insurmountable, but I'm certainly glad I don't have crawling babies!

A quick update.... having deliberated for hours (literally), we've taken the decision to pull out.

I feel sad as we loved the house and I think we were very close, however the sense of relief is immense. This means we can get DS through his A-levels and settled at uni without worry.

DS is also thrilled and plans are already afoot for his 18th

Thank you to all who responded, your input was genuinely helpful

I think if you feel relief then it was the right decision. Reading your earlier posts it seemed an odd stage in life to commit to an area you don't really seem to want.
What is your time there? If DS decided to move 200 miles away for uni might it open up more options for you?
Normally I'd be all for buy the house but in your circumstances a year for things to settle in your own lives and the wider world seems wise

I meant what ties you to the area!