subject: What To Do If The Property Chain Breaks [print this page] It can be hugely disappointing to suddenly lose the property that you feel is just right for you, not just because you can already see yourself settled in there, but because you may also lose out financially if you have already instructed a solicitor and surveyor.
So what is the next step if the property chain breaks on you? Or, indeed, you break the chain?
The first obstacle could be a rejection from your mortgage lender; which is why it is advisable to get a provisional offer before you start property-hunting.
Try to find out why your mortgage offer has fallen through, If you are using a broker, they will suggest the next course of action. If you're dealing directly with the lender, it might be tougher to find out, so you won't know which lenders will be more sympathetic the next time around. That said, the more applications that are made, the worse the credit file will be . If you keep getting gazumped - the nasty practice of a vendor accepting a higher offer after they have accepted yours - then try speaking with the estate agent to find out what motivates the vendor.
It will most likely be money, so coming up with an improved offer may help your cause. But if you are chain-free and/or a cash buyer, you really could have the upper hand over your opposing purchaser as the seller may want the transaction to move as quickly as possible.
To avoid being gazumped in the first place, some advice. Offer a deposit with a lockout agreement. That prevents the seller from speaking to other interested parties for a specified period once your offer is accepted.Always talk to your conveyancing solicitor, they may be able to advise you appropriately.
There is also an art to making an offer and you should enter the negotiation with as much information as possible.
Knowing exactly what will tempt your seller is a good place to commence, whether it is the price or completing the property transaction within a certain time scale. Again check with your conveyancing lawyer that the suggested timescale is realistic. Also make sure you have done your research on what is selling locally and how high a demand there is for the kind of property you're after.
Now that the sun is smiling down on purchasers once more, with prices falling and sellers becoming more vulnerable, there is less possibility of the buying process going to sealed bids. If this does occur, you must decide on the absolute maximum that you are prepared to pay, stay with it, and don't look back if you lose out. Make it known when you place your bid if you have nothing to sell or are flexible over completion dates and supply details of your solicitor and mortgage lender's provisional offer.
Many housing chains break simply because someone simply gets cold feet, keep in regular contact with your conveyancing solicitor and the estate agent to keep the whole transaction moving forward as quickly and smoothly as possible. But until contracts are actually exchanged with the seller, absolutely nothing is certain - the buyer or the vendor can walk away from a deal until that time without any legal recourse. Any payments made up to this point - on searches, legal or survey fees, or a deposit in the case of new builds - are at the purchaser's risk.
If your seller pulls out, try to find out why. If the reason is cash, consider if the extra required is worth it, it may be that by paying more you can seal the deal. If the property they are buying has fallen through, perhaps they can move and rent while they start to search for an alternative property. Or maybe you can wait until they find somewhere else to buy?
Receiving the survey and processing the results can be another deciding factor on whether to purchase or not? No property looks like the bargain of the century after you have ploughed through pages of problems, but subsidence is the only one you really need to worry about.
The part of the survey to focus on is at the end, it gives details of exactly what needs doing and the cost, either determine it's too much and pull out of the purchase or get the seller to fund as much as possible before they leave, There is no reason why that should be your responsibility.
It pays to review the property with that report in your hand. The faults described in the report can seem a lot bigger than they actually are. Don't panic. Look again at the property and discuss it.
Ultimately, though,if your purchase falls through, there is always another, probably better, property just around the corner. Over a lifetime, there will probably be numerous properties you loved and lost - and never thought of again.
