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I am buying a flat (in England) and my offer was accepted. I applied for a mortgage (that is yet to be approved). After some time my solicitor found out that some constructions are planned in the area and I'll need to pay an estimated £4k next year. I wonder, can I use this information to ask the seller to reduce the price at the current moment? If yes, and the seller agrees to reduce the price, what happens with the mortgage, do I need to reapply for it or somehow the mortgage can be amended and reduced in size?

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  • Just a side note: if you’ll have to pay £4K next year, will you have that money to hand if you reduce the size of the mortgage? You may need to keep the mortgage amount the same (which will then also affect the LTV ratio).
    – Vicky
    Nov 2 '21 at 19:13
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I presume UK.

The mortgage offer will probably not come until their own valuation has been carried out and will generally be based on that.

can I use this information to ask the seller to reduce the price at the current moment?

Absolutely! They can only refuse if they think they will do better with another purchaser who may take a similar view anyway if/when the development comes to their notice

what happens with the mortgage

The mortgage offer will usually be conditional on completion and based on the valuers report. Your solicitor/conveyancer will be responsible for arranging the final offer when the time comes.

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    The lender's solicitor raises the mortgage deed and your solicitor/conveyancer will go through the detail with you before you sign on the dotted line witnessed by him. So, yes the solicitors/conveyancers on both sides interact in the process of drawing up the final deed. A change to the offer should nomally be directed through the agent and your solicitor should be kept in the loop. Your comment about the bank is not clear to be able to respond appropriately but don't try to mislead any party in the transaction. It could end badly for you!
    – 24601
    Nov 1 '21 at 20:36
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    If that answers the question for you, please consider marking it as accepted (grey tick to the side of the answer). Thanks. money.stackexchange.com/help/accepted-answer
    – 24601
    Nov 1 '21 at 20:40
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    just to add... the lender will do their own due diligence before making the offer and if that is based on misleading information which comes to their knowledge, you might compromise any further offers from them or another lender for that matter. Always best to be up front with them from the off...
    – 24601
    Nov 1 '21 at 21:01
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    the bank has a solicitor as well, who takes case of the final deed where there is no perceived conflict of interest, the Lender will often engage the services of the buyer's solicitor on agreement.
    – 24601
    Nov 2 '21 at 5:35
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    But if I want to reduce the price, and tell this to the agent, they are also obliged to communicate this info to the seller? You can't guarantee that as there is no legal relationship between you and the agent - the seller pays their fee and a reduced accepted offer might impact on their fee! Perhaps communicate with the seller by letter (talk to your lawyer) through the Agent. The agent may well be honour bound to pass any change in the offer on but you may need to be certain that it is communicated properly in accordance with your wishes. You might be gazumped of course! Quite legally!
    – 24601
    Nov 2 '21 at 19:23

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