Buy the first property or the second property, a big question mark??

[lokchi]

We are now buying the first property, 500 sq ft, buying price £350,000 plus an extra £18,000 cash to buy the lease extension to 110 years, totalling £368,000. We have already arranged a mortgage of £315000 and have assigned a solicitor to act for us. Everything is going on schedule.

We kept our eyes on the property market and we found the second property in the same area, 700 sq ft, asking price £385,000 (with the possibility to buy at £380,000 or £375,000) with lease 112 years left. But there is a tenancy agreement attached to the property until 2009. We prefer the second property for the sake of its size and setting.

If we want to stop processing the first property and go ahead with the second property, what will be our options in terms of mortage arrangement, solicitor arrangement? How can we deal with the estate agent of the first property and the second property? Also, we'd like to move in ASAP without the obligation continuing that tenancy agreement, is it the seller responsibility or our responsibility to ask the tenant to leave? What are the most possible ways to proceed it?

Please advise

[Ericthelobster]

Originally Posted by lokchi

If we want to stop processing the first property and go ahead with the second property, what will be our options in terms of mortage arrangement, solicitor arrangement? How can we deal with the estate agent of the first property and the second property? Also, we'd like to move in ASAP without the obligation continuing that tenancy agreement, is it the seller responsibility or our responsibility to ask the tenant to leave?

Mortgage - you'll need to make a completely new application and pay any fees again - it won't be transferrable

Solicitor - you'll probably have to agree to pay the solicitor for any 'wasted' work he's already done in connection with the aborted purchase. May well not be very much at all at this stage, but that depends on the solicitor and how far the process has gone.

Estate agent (first property) - assuming you haven't exchanged contracts, you can simply withdraw without penalty: a 'feature' of the wonderful English property buying process. (second property - just approach them as you doid the first??)

Tenant - that's the big one. Depends on the conditions of the tenancy, but if it's fixed until 2009 (which is quite a long time for it to be fixed) then it's unlikely that they can be moved out, either by you or the seller. If you want to buy with vacant posession you need to find out details from the seller/estate agent before you do anything.