Downvaluation issue lower in chain - should I contribute?
Interested to hear what people think is a fair solution here, as I’m currently caught in the middle of a chain issue.
I’m selling my house to “Georgia”, who is also selling her house to a buyer further down the chain “Dick”. (Not actual names)
Dick had a survey done back in January. Georgia’s property was apparently downvalued by £20k at that point, and the survey identified around £5k worth of works (damp, electrics and some roof repairs).
Despite this, Dick confirmed back in January that he was happy to proceed.
Now, months later and very close to exchange, Dick has suddenly demanded a £10k reduction or he’ll walk away.
Georgia says she’s financially maxed out and can’t absorb the reduction herself. The estate agents are now effectively asking whether I’d reduce the price of my own house to help save the chain.
My perspective:
- my own house has not been downvalued
- I’ve already had an offer accepted on my onward purchase
- I’ve instructed solicitors, surveyors, mortgage etc
- my onward purchase is chain-free
- my house is vacant
- the survey issues below me were apparently already known months ago
My current thought is that, given the identified works are only around £5k, a more reasonable compromise might be:
- I reduce my sale price by £2,500 to Georgia
- Georgia reduces hers by £5,000 to Dick
- effectively Georgia contributes £2,500 herself and I contribute £2,500
At this stage we don’t know whether Dick would actually accept £5k, as he is currently asking for £10k.
That feels more reasonable to me than me absorbing the full issue for a property I’m not directly connected to, especially given the valuation issue was apparently known months ago.
Does this sound like a fair compromise, or am I being too generous / not generous enough?
Edit: In England