Tue 29 May 2018
According to a recent study, over the last ten years almost a third of people who have had an offer on a property accepted have seen the sale fall through before completion. As a buyer, find out how you can prevent this from happening to your house purchase.
The study, commissioned by Market Financial Solutions, surveyed 2,000 people and found;
- Two fifths of fall throughs was due to a breakdown in the chain
- A third was due to delays in getting their mortgage delivered by a bank
- 16% fell through because their lender rescinded the mortgage agreement, despite having an agreement in principle
Sharon Allardice, Sales Progressor at John German Estate Agents provides advice to help buyers avoid their property purchase from falling through "For those purchasing a property with a mortgage, it is really important to be open and honest about your finances from the start. It isn't uncommon for buyers to overstate their income and to forget to mention other financial commitments that can impact on their borrowing capacity when whilst obtaining an agreement in principle (AIP). Whilst the bank/lender may offer you the AIP, there could be issues obtaining an actual mortgage offer if you do not have the required paperwork proving your income. This can cause delays with your purchase and increase the chance of others from pulling out due to delays in the chain.
I would also suggest for purchasers to be mindful of any work a property requires and to not over stretch their finances. Ask yourself "is this a bridge too far?" I see sales fall through further down the line when a buyer has gets cold feet after considering the cost implications of work required on a property. This can cause problems for everyone in a chain, not only financially with solicitor fees, but also emotional stress for all those involved.
So overall, the best way to avoid delays and sales falling through is by having a clear idea what you can afford to take on from the outset." concludes Sharon.
For tips on how to speed up your property purchase/sale check out: A sale has been agreed, what happens next?
"Hi Stuart I wanted to thank you and all at the office for all the help you've given me with 10 W* G*. Not being local, the service both you and your staff have given has been outstanding - above and beyond - and I don't know how I would have managed without you."