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Unexpected costs that you may incur if you decide to buy a different property halfway through ...

Unexpected costs that you may incur if you decide to buy a different property halfway through a purchase


The property purchasing process can be a rollercoaster, filled with ups and downs. One minute you are riding high because you've had your first viewings or perhaps your negotiating offers; it's all very exciting.

But the next minute, you can be in the depths of despair. Problems arise, and you're worried and stressed, maybe even struggling to sleep.

Statistically, 30% of agreed property sales will fall through in the UK. No doubt you will have experienced this at some point or at least know someone else that has.

After the turmoil of losing a property, or indeed a chain of property sales collapsing, it can be very frustrating to learn that you must almost start back at the beginning with the legal process, which is time-consuming and costly.

Suppose you have to change to purchase a different property than the one you had initially planned on or have a renegotiation of the property that you are purchasing. You may have to pay for new searches with the solicitor and complete new paperwork. In some cases, you may even have to resubmit your ID and proof of address. And you may have to apply for a new mortgage.

But why do you have to start right back at the beginning if you have to withdraw from a property purchase or your buyer pulls out?

Fundamentally, solicitors and mortgage lenders will treat a new purchase as an entirely new file. This means you won't be able to use the paperwork they hold on file for a previous property purchase; they will start over again. You might need to complete the initial forms and maybe supply your ID all over again. The new property will need new searches because this is specific to the property.

The mortgage lender will require a new survey of the property if the details of the purchase change substantially because the terms are based on a particular price and percentage of loan-to-value (the ratio of the mortgage amount to the overall property value). And especially if you end up purchasing an entirely different property.

Sadly this will mean that there are costs involved, both from the mortgage lender for the survey and the new application and from the solicitors for their paperwork. So, losing a sale, or purchase of a property, is more than just heartbreaking; it is expensive. And unfortunately, there are often no ways around the expense unless you decide to cut your losses and decide not to move.

This is why sales progression - the close monitoring and expert coordination of the property sale process conducted by the estate agent - is so important. Estate agents are the linchpin in a property sale as they have access to speak to all parties involved, so they are integral to the success or failure of a property sale.

Selecting an agent to sell your home is a significant decision, but consider how they manage those sales once they are agreed upon. Do they have a dedicated team to handle the complex process and keep everyone informed throughout the legal process? Or are they entirely focused on agreeing the sale and then hoping that the solicitors can hold everything together through the legal process?

Dealing with the sale process is complicated and nuanced, and every sale is different, so it really does need an expert eye. If you are working your way through a tricky sale process and need some advice, don't have sleepless nights; give our team of property experts a call.


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