Hot Topic When A Property Transaction Goes Wrong

Not every property purchase goes to plan.

We are increasingly seeing transactions fall apart late in the process buyers pulling out, down valuations, broken chains and missed deadlines. In many cases clients assume the move is over and begin preparing to remarket or withdraw completely.

However, a collapsed transaction doesn’t always have to mean a collapsed move.

There are often practical solutions available, provided advice is sought quickly.

One of the most common scenarios is a client losing their buyer shortly before exchange. Rather than abandoning the onward purchase, the current property can sometimes be retained and let on a let-to-buy basis. This allows the client to raise deposit funds from the existing property and complete the onward purchase while remarketing the original home chain-free.

Where timing is the primary issue for example a fixed completion date, probate deadlines or developers requiring exchange short-term bridging finance can provide a temporary funding solution until the property is sold. This is particularly useful where the client has sufficient equity but not immediate liquidity.

Down valuations are another growing issue in the current market. In some cases these can be managed through restructuring the borrowing, using part-and-part mortgages, additional security, or revisiting lender selection where affordability models differ.

The key message is simple: a problem in the transaction does not automatically mean the move has failed.

Many transactions only collapse because clients believe there are no alternatives. Early advice can often turn a broken chain into a workable solution and allow the purchase to proceed with minimal disruption.