What to Do If Your Property Purchase Falls Through

Buying a property is one of the most significant financial commitments you’ll make, and it can be incredibly stressful when things don’t go to plan. Unfortunately, property purchases sometimes fall through for various reasons, such as mortgage issues, survey problems, or chain collapses. If you find yourself in this situation, here’s what you need to know and do next.

Understand Why the Sale Fell Through

The first step is to determine the exact reason why your property purchase didn’t go ahead. Common reasons include:

• Mortgage issues – If your mortgage lender refuses to offer a loan, you may need to reassess your finances or seek alternative lending options.
• Gazumping – The seller may have accepted a higher offer from another buyer.
• Survey concerns – A negative survey report could reveal structural or legal issues that make the purchase untenable.
• Chain collapse – If another transaction in the property chain falls through, it can impact your purchase.
• Seller withdrawal – The seller may have decided not to sell, sometimes for personal reasons.

Understanding the cause can help you determine your next course of action.

Check if You’ve Lost Any Money

If your property purchase falls through before contracts are exchanged, you usually won’t be legally obligated to proceed, but you may be liable to costs, such as:

• Survey fees
• Search fees
• Conveyancing solicitor fees
• Mortgage application fees

Some of these costs may be recoverable or transferrable to a new property, so check with your solicitor and mortgage lender.

Assess Your Options

Once you know why the sale fell through, you can consider your next steps:

• Renegotiate the deal – If the issue was a bad survey or an unexpected problem, you may be able to negotiate a lower price.
• Look for another property – If the seller has pulled out or you’ve been gazumped, it may be time to resume your search.
• Seek alternative financing – If your mortgage was declined, you could speak to a broker about alternative lenders or government schemes.
• Thanks to Aston Bond’s partnership with our search provider, with us as your solicitors you’ll receive a free search pack on your next purchase if your initial purchase falls through, as long as it happens within six months.

Prevent Future Issues

To minimise the risk of a failed purchase in the future, consider:

• Using a mortgage agreement in principle (AIP) – This shows you’re a serious buyer with financial backing.
• Getting property surveys done early – Identifying issues quickly can prevent wasted time and money.
• Inquiring about chain-free properties – If possible, look for properties without a long transaction chain.
• Discussing legal protections with your solicitor – Some buyers opt for “lock-in agreements” to deter gazumping.

Consider Home Buyer Protection Insurance

To protect yourself financially, you may want to consider home buyer protection insurance, which can cover costs incurred if your purchase falls through due to circumstances beyond your control.

A failed property purchase is frustrating, but it doesn’t have to derail your plans. By understanding the reasons behind it, assessing your options, and taking steps to prevent similar issues in the future, you’ll be in a stronger position when you find your next home.

Don’t hesitate to contact Aston Bond’s skilled Conveyancing department on 01753 846 777 for expert advice.