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Property/DIY

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Unusual arrangement with private seller?

6 replies

DespairingInLondon · 14/05/2022 13:55

We connected with a private seller and made an offer, which was accepted. Then, very bad timing, my OH's work contract ended and he's now focused on getting a new one so we can secure the mortgage. This is taking longer than we'd hoped but we are confident that something will come up in the next 1-2 months as he's in a highly sought-after, well paid industry and has a few promising leads.

Understandably, the seller is feeling stressed out about the delay but seems to really like us and wants to find a way to make it work. However, he wants to see 'more commitment' from our side and has suggested that we put down a sizeable, non-refundable deposit of around £50k. He'd let us move into the house (no rent in addition to the deposit) and give us another few months to get the mortgage sorted. We'd have this put into a contract with a solicitor. We think the chance of getting the new work contract organised on our side are pretty good, even so the proposed arrangement seems unusual and I don't think I'm comfortable with that level of risk. Am I right? Has anyone ever heard of such a agreement? I know either side can pull out up until the very end, so would it be possible to lock both sides in in the contract?

The seller is a really lovely guy and we think he's being very sincere about wanting to sell to us. He has emotional ties to the house and sees how much we love it too. So I really don't think he's trying to scam us. But still ... I don't want to lose a huge chunk of our deposit, even if the odds of that happening seem very low. OTOH, if we pull out, then we likely have to move out of the area we love and move further out, which we all find heartbreaking.

OP posts:
purpleme12 · 14/05/2022 14:07

God no I wouldn't do that.
I mean it's one thing moving into the house before exchange (rare but I've heard of it before) but quite another putting down a non refundable deposit before exchange!!

Ilikewinter · 14/05/2022 14:12

Nope not a chance I'd risk £50k, if hes that keen to sell to you then he'll wait another month

TequilaShot · 14/05/2022 14:12

Are you confident that you will be able to secure a mortgage? It seems like a huge risk to me and the only people to loose out if things go pear shaped is you.

Barleysugar86 · 14/05/2022 14:15

We did put down a non refundable deposit before exchange on our house - which was about £10k of the sale price. We were one of several people offering the same amount, and offered it ourselves to secure the property as the seller had had his last sale fall through. It seemed to swing it for us. £50k is a lot though. Could you barter him down to a smaller amount with possibly a rental amount short term until you were ready to buy?

hazelbeach · 14/05/2022 16:13

This is a really risky proposal. I wouldn't do it unless I was prepared to lose my £50k.

I would look into bridging finance, and tell the vendor that if you haven't got a new job and mortgage secured in the next two months then you will proceed with a bridging loan.

JustALittleHelpPlease · 14/05/2022 16:20

But you're reducing your deposit by 50k. Surely that lessens the amount you can secure on a mortgage (no mortgage company is going to accept a private contract are they?). Sorry but it seems only to work for him?

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