By Admin on Sep 16, 2009 in Renting & Real Estate
My house was on the market for £119,000 and i accepted an offer at that price but was subject to a 7% vendor gifted deposit. This meant i would get £110,000.
Four weeks into the deal the buyers mortgage company have said the house is only worth £110,000 and will not lend the money as the house is not worth £119,000 and the surveyor came to this conclusion based on 2006 prices but the houses they compare against had no central heating and needed complete modernisation. My house is ready to move in to and needs no work at all.
The estate agent has now suggested I reduce to £110,000 and still gift the 7%, meaning i would need to find another £8000. Which i do not have. The buyers are a young couple and do not have any more available funds.
Does anybody have any suggestions?
Thanks for the answers.
Our buyers are first time buyers and it was the agents idea to accept the vendor gifted deposit and we were told there would be no problem and the valuation would be done and the mortgage was already in place (arranged by the estate agent for the couple). Its only now, 4 weeks from completion that the survey has come back with the lower valuation. Looked on a few sites and it says the average is £119,000 for this estate, however, other houses for sale on the estate are selling for the lower price and the ones priced higher are just sat stagnant on the market.
We do not want the sale to fall through and fee ouronly option is to some how try and find the extra money needed by increasing the mortgage of taking out a loan.
unfortunatly theres not much you can do. if their mortgage company have only valued your house at £110.000 then thats all they will lend.you could try arguing but i doubt youll get any where. if i were you i would agree to dropping the £9000 but not the 7% vendor gift, if they didnt agree to it i would pull out of the sale.
Daz | Sep 16, 2009 | Reply
Urgh what a mess… I used to be an estate agent and the only thing I can think of doing is:- You need to go and see your solicitor urgently, the estate agent just wants their fee and they dont care so dont be pressurised in to dropping. What you could do is get your own survey (which will cost money) on the house, one which their mortgage company will except. Also get your own comparable’s (eg:- Rightmove & Net house prices) and take them into the estate agents and remember they are working for you! Put pressure on the estate agent and find out if they are first time buyers and also if the estate agents are doing the mortgage for them (this could cause a conflict of interest, which you can use in your favor)
Hope you get this sorted, its a mess but hopefully everything will work out fine. Its messy getting into the vendor deposit thing, its messed things up, was this the estate agents idea?
If the house sale doesnt go through and you dont drop the house price etc I would put the house on with another estate agent, because they should be helping you as you are paying them a fee.
Good luck x
Tinkerbell | Sep 17, 2009 | Reply
If you pull out, you will save more money !
Leon G | Sep 18, 2009 | Reply