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considering backing out of a sale


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Hello :)

Im in a bit of a head-spin, so would really appreciate thoughts and advice. In May this year I had an offer accepted on a new-build 1 bed in Homerton East London. It was a long process of getting my mortgage offer, and its just come through this week (19 oct). I was abroad with my work since May and have just returned to London the same week as the mortgage offer came through. I was expecting to smooth sail straight into the final stages of completion/exchange but after a visit to the property yesterday (the first since it was fully completed) I left feeling very unsure. Background info; after viewing about 40 properties in the market around apr/may 2018 around the 400k price I realised I wasn;t looking to get much for my money. It will be my residential home, and I was looking for a small period flat. I wasn't considering a new build until the agent suggested I come see the new development, and I think I was seduced by the shiny new clean beautifully furnished show-room flat. The idea of moving into a space that needed no work suddenly seemed very appealing. I agreed the asking price and the deal was done. 

After visiting the flat last week, I left thinking that it wasnt the same quality spec as I recalled, and the actual feel of the new development.... a bit souless. Not anticipating this last minute change of mind, I walked into a local agent (different to what I was purchasing from) and started reeling off a series of questions about the market, had it changed much since may, his thoughts on new build vs period and ex-council. His thoughts summarised; yes the market has softened since May, new builds were most likely being over-priced in the current market and generally speaking the construction of a ex-council/period was far superior to a new-build and they would hold their value much better. 

 

I then spend a full day scoping the market on Right Move, and it seems fairly clear - property prices have indeed dropped since May, and with a budget of circa 400K I could get a relatively OK 1 bed victorian or 2 bed ex-council in the same area. It suddenly seems clear that Im paying over market price for the new 1 bed, and would be better off getting an ex-council or period. 

 

I havent yet exchanged contracts, but searches, surveys and some legal admin has been done. I expect I will be liable for part of the vendors legal expenses? 

Questions; 

- Was I crazy to ever consider a new-build? 

- Is a low-rise ex-council in desirable East-London (victoria park) the way to go? 

- Would it be better to go with a smaller period flat in the same location? Or do ex-council and period more or less level each other out in the end? 

 

THANK YOU

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