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joe brown

Should I Re-Negotiate? (Covid Impact)

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Hi everyone, 

I know this question is being asked all over at the moment, but, should I attempt to re-negotiate?

The house was on for £140k, agreed at £132.500 originally and then reduced this to £131.000 after a survey brought up some issues. The property is already being let by tenants at £670p/m who I intend to keep (however, they are both self-employed, one in catering and one in theatre... not great with everything at the moment! However, I assume they'll be getting universal credit to help them)

At the moment, I've paid for my survey and I've instructed my solicitors, but that's all, the mortgage application has been on freeze for 2 months.

With the predictions (only predictions I know) of 5-15% falls in the next year or so, and statistics today showing unemployment up (which backs up the price fall predictions I think) should I consider revising my offer again? I feel like if I hadn't agreed a price when I did, I'd be offering less now than before and would like to price in any fall potential otherwise I may as well pull out and wait.

On the flip side, the opposite argument is even a 5% fall on £130k buy is only like a 6k fall potentially (which could then rebound) and to wait another year means I'd be loosing 4k in rental profits anyway.

Should I be cautious? Or just plough ahead? Or try and price in the situation/fall damage/the fact the current tenants may struggle to pay in the coming months because of their jobs, by lowering my offer?

Any thoughts appreciated!!

 

Cheers,

Joe

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1 hour ago, joe brown said:

Hi everyone, 

I know this question is being asked all over at the moment, but, should I attempt to re-negotiate?

The house was on for £140k, agreed at £132.500 originally and then reduced this to £131.000 after a survey brought up some issues. The property is already being let by tenants at £670p/m who I intend to keep (however, they are both self-employed, one in catering and one in theatre... not great with everything at the moment! However, I assume they'll be getting universal credit to help them)

At the moment, I've paid for my survey and I've instructed my solicitors, but that's all, the mortgage application has been on freeze for 2 months.

With the predictions (only predictions I know) of 5-15% falls in the next year or so, and statistics today showing unemployment up (which backs up the price fall predictions I think) should I consider revising my offer again? I feel like if I hadn't agreed a price when I did, I'd be offering less now than before and would like to price in any fall potential otherwise I may as well pull out and wait.

On the flip side, the opposite argument is even a 5% fall on £130k buy is only like a 6k fall potentially (which could then rebound) and to wait another year means I'd be loosing 4k in rental profits anyway.

Should I be cautious? Or just plough ahead? Or try and price in the situation/fall damage/the fact the current tenants may struggle to pay in the coming months because of their jobs, by lowering my offer?

Any thoughts appreciated!!

 

Cheers,

Joe

If it's a good deal as it stands, then plough ahead. Do you want to risk losing the deal? If prices do dip, remember that property prices will continue to increase over the long term!

In terms of the existing tenants' situation, perhaps you can try and find out if they are still paying their rents as expected. Or if they have been impacted etc. This would help with your decision.

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