anyone know anything about mortgages... grrrrr

[Krystal]

Grrrrrrrr this bloody house again!!

Well bit of background first.. getting a new build house on 75% share.. after lots of delays finally there... almost! We were meant to complete on Tuesday when 10 day cooling off period for 25% share bit is over. We haven't exchanged yet cos I wanted to do a snag check first so that was going to be Friday. My cousin went to see the same house and they have failed to inform me the price has come down by £10,000!!!!

So cos we haven't exchanged my plan was to call them tomorrow and threaten to pull out unless they give me it at reduced price. Am I within my rights to do this and how much will it delay me getting the keys? I just want my house

 

[Foxxi]

I think I would maybe ring the Citizans Advice...Im sure they'd be able to help and tell you where you stand!

What a bloody carry on you've had!

 

[Krystal]

I know... it's really frustrating actually

 

[SarahH]

I'm not sure as the housing laws are different in Scotland, but I *think* if you have signed then that is it, I'm affraid

Sucks, dont it!

 

[Krystal]

we haven't signed anything but the credit agreement for the 25% which we have a 10 days cooling off period hence us not being able to complete until the 30th. I know my solicitor said once we exchange we are bound which is reason she said we won't until we've done snag checks on Friday which is why i'm hoping we are still in time to pull it. Not that I want to but i'm not buying a house for £10,000 more than it's worth

 

[Hazel]

As far as I know you can pull out when you want. The exchange is the day you get the keys so can pull out the day before. I would call their bluff and say you want the 10k off but only if you're prepared to lose the house.

 

[Krystal]

As far as I know you can pull out when you want. The exchange is the day you get the keys so can pull out the day before. I would call their bluff and say you want the 10k off but only if you're prepared to lose the house.

Thats what i'm going to do first thing tomorrow.. I am hopeful. What are their options.. they either reduce the price and get me in there guaranteed sale ASAP or they have to put the house back on the market at the reduced price anyway.
I love the house and have already spent a couple of grand on carpets ready to go in but i'd rather lose a couple of grand than be 10,000 in negative equity the moment we move in

 

[Jollypops]

Until you have signed the paperwork you can ask for what you like, but be prepared for them to say no and then not sell you the house at all as they can do that to. I am presuming the £10,000 is due to the market value at the moment? Remember it might be down £10,000 at the moment but could be worth alot more in a few months, i'm afraid thats the thing with houses. If you were prepared to buy it at the original price then surely the house is worth it?
Good Luck

 

[CoreysMummy]

Right, feel free to PM, or I can give you my number if you need it.

I work for a new built company, 2nd largest in the country.

Exchange (exchange of contrats) is your agreement to buy the house at 'x' price, and their aggreement to sell it. Dont exchange until you have Snagged. Failure to exchange may result in you losing the property.

Are you mortgaging on the 25%? I assume you are? And your mortgage has been aproved? Dont exchange unless you have the full mortgage offer. If you have a full mortgae offer then the valuer will have been round and valued the property. It must be valued at the sale price or higher for you to get the amount you want (within reason, if I want 60k and the house is worth 100k but for sale for 110k, mortgage company will give me 60k because they can get their money back if I default. They wouldnt give 101k, because they think if you default they cant get it back).

I didnt deal much with shared ownership propertys.

Completion is the day you get the keys, when all money is handed over through the solicitors, this should not be confused with exchange (this is when aggreements are made to buy the property and usuall 5%/10% of the value is given to the solicitors, every developer deals with this differently with shared ownership, so I dont know what, if anything you are giving to the solicitors.

Any more specific questions feel free to ask, ill be on for a bit longer.

Hope that helped, and I wrote it ok, its confuzing stuff!!

 

[CoreysMummy]

Just read over it again.

Its abit late to be changing the price, but by all means if you are willing to lost the property then ask for a reduction. Things are tight, but there not that tight that my place would drop a property 10k. BUT thats not Shared ownership, the price is slightly less negotiable on those due to council etc beign involved.

If you are planning on being there for 10years, it dont matter if you are in neg eq for a while, im sure my house will be the way things are going, but they always come up again!! You have to look at the bigger picture, and not worry to much... this recession thing happends every 10-15 years so im told.

Might be worth asking to guage a reaction on a price reduction?!

 

[Krystal]

Jollypops - if the sale had gone through a few months back like it should of I would have been happy to accept the fact house prices of gone down but not in this instance. I wouldn't stand at the till in curry's buying a 52" plasma tv for £1,000 when I can see the sales guy putting a sticker on the one in the shop for £700 if you get what I mean it's their own fault I haven't completed yet anyway.. should have been done in June..

CM - Thanks for that info. The mortgage has been approved on the 75%, the valuers went round ages ago and valued it at the price I am paying but that was over 3 months ago, as I said we should have moved in June but due to them not having the correct paperwork for the shared part of it we have been delayed. The 25% is classed as a credit agreement betweeen me and housing association... it's basically a interest free loan which I pay back within 10 yrs but if house goes up then I also pay 25% of that to them if that makes sense. We haven't exchanged yet that should of been friday. From what you said there it sounds as though I can pull out. Not that I want to but for same reasons I said to jollypops i am not buying a house 10 grand more for current sale price I really love and want my house too - Just read your reply.. I am defo going to be asking for the reduction regardless. I still need time to think over whether i'm willing to stay in a property with 10k neg equity as soon as I move in

 

[CoreysMummy]

Oh the other way round 75% to you - well done, thats great. Ours are usually 50/50 at most.

Its worth a try to get a lower price. But bear in mind what I said about the mortgage, they are not stupid, BUT I understand what you mean about neg eq, heck 10k is 10k, its worth a go. Even if u get 3k off, its paid for the carpets eh

I dont know where u are, so I cant comment on the housing market there. But here in north london, well Hertfordshire, the housing market is not on its arse just yet. But increases in prices have droped 0.5% per quarter. so pretty stagnant. But not dropping yet - thats what im clinging to!!

Its so hard when you want it really bad!! I hope you get something sorted out. Remember, you havent signed, so you can pull out whenever!! But so can they.