Phil in June 2017 signed a Contract to purchase a property for $3,300,000.
He paid a 10% deposit with settlement in June 2019.
Phil now has two problems: -
The Lender will only lend him a maximum of 60% of current value (he was expecting 80%); and
The property has decreased in value (he was expecting an increase).
Phil’s difficult options are: -
Default, lose his deposit and possibility be sued by the Vendor for the loss on the resale, whenever that occurs; or
Agree with the Vendor to renegotiate the terms of the Contract and settle.
We have assisted many Vendors and Purchasers in similar situations now and in previous difficult property market downturns.
As proceeding without pro-active understandable advice from Millens in such difficult situations as a Vendor or a Purchaser may result in severe financial loss for all please do not hesitate to contact me to elaborate on your options.