Last minute price change on property purchase

[CaptainSensib1e]

Hopefully a quick question for all you property experts.

After a mini-series of dramas over our (hopefully) upcoming move we are now pretty much ready to exchange. Only spanner in the works is that our buyers have asked for some money off for some bulding work that needs doing.

We're happy with this, and can cover the cost with cash flow rather than having to increase our mortage. However our buyers solicitors is saing they will need to wait for an amended mortgage offer confirming the new purchase price before they can exchange. This is likely to take a few days to issue, and will hold up exchange.

Was just wondering if this was absolutely necessay, as our buyer is still borrowing exactly the same amount of money. I hear stories about property deals being changed at the last minute all the time, so just wondered if it was possible without delaying exchange?

Thanks.

[Nigel_O]

Probably down to the loan-to-value figure - ie if the buyer was borrowing (say) £150k against a £200k property, the LTV is 75% and would qualify for a decent mortgage rate. If the purchase price is reduced to £190k, the buyer is now borrowing 79% of the property value - this might increase the interest rate, or might even kill the mortgage offer altogether if the mortgage product has a 75% LTV ceiling. Either way, its an increased risk for the lender, so it has to be re-assessed

Annoying, but normal.

The only way to get round it is to keep the purchase price and have the work done yourself, but I suspect this would cause an unacceptable delay

[Sarnie]

If the purchase price is changing then yes, it's a material change and a revised offer needs to be issued.....the solicitor cannot draw up contracts with an offer that has a conflicting purchase price......

[Welshbeef]

What about you pay them the cash direct ?
Totally avoid the change that way.


Actually a lower sale price will mean less stamp duty too hmm

[CaptainSensib1e]

Thanks for all the replies, makes sense. Cheers.