? Gazundering given falling prices

[Newbielandlord2015]

Hi All,

Am in the process of buying a small 2 bed flat in Suburban Lambeth, which I put on offer on in early July 2014. However, with falling prices I think I have overpaid ? I am buying this as a BTL.

I paid just under 200K but think I've overpaid by about 10K.

What would others advice in terms of whether this is worth it ?

How should I approach this ?

Thanks

[JK0]

Try to find something tangible to justify your reduction and you may be on stronger ground.

Has seller delayed moving? (Ask for lost rent.)

Is there something you have discovered in the seller's replies that makes you think the place is less valuable? Ask for a reduction for that.

[Claymore]

I've known for this to happen in reverse when property prices are going up dramatically.

Have prices really dropped as much as 10K in 3 1/2 months? If there are now similar properties that you could buy £10k cheaper - I think I would seriously consider trying to renegotiate price or simply pull out.

[jpkeates]

It would depend on what caused the delay I guess.
If you pull out, the seller will also have lost £10k and you wouldn't want that to be something that they sue you for.

If the delay was expected, you took a chance and it didn't come off.

[loanarranger]

There is no tangible evidence of falling property prices in South East London and the surrounding areas, I have a client who was in a queue of people wanting to buy in a location in New Cross and the market demand justified the price: however if the unit is sub £200k then I agree you need to investigate sales comparable before you play hardball on the agreed sales price but £10000 is only approx 5% of the value and personally I wouldn't get too concerned but that is my own opinion.

[Wannadonnadoodah]

jpkeates,

You can't get sued gof pulling out of a house purchase. Nothing's binding until exchange then completion.

[jpkeates]

I was making an assumption about where in the "process" the OP was.
Which I probably shouldn't have done.

[JamesHopeful]

Far from overpaying, just under £200k actually sounds very reasonable for a 2-bed flat in the London Borough of Lambeth -- I take it that it is it in a big ex-council block or something?

[welshboy166]

Less than £200k in Lambeth?? Depends where in Lambeth of course but sounds like a deal. I'm in process of selling 2-bed ex local in Stockwell for £320k

[Interlaken]

That 10K you think you may have overpaid will be back in equity within a year I would argue.

London and indeed South of the river is buzzing - never seen it look so good there.