Time limit on Mortgages?

[Angelbones12]

Is there a time limit for a prospective seller to sell his property within a certain time frame? The buyers are claiming their morgage offer expires Tuesday. Is this correct? I am selling commercial property to be converted by the buyers into residential accomodation. I was asking for �220K but their lender's evaluator said it was only worth 120K since it was non residential property, but I am selling the freehold too. Anyway, their 'final' bid is �170K . I am trying to up it another �5K which they are rejecting.Should I call their bluff or wait for another buyer to have an inspection. They have already spent over a grand in preliminaries, surveys etc. and I know they can afford another �5K. Problem is it is in a sort of rough area although it has improved immensely but accomodation for a 2 bedroom flat in the same street has an asking price of �315K. Should I take the money and run considering they have not applied for planning permission and properties in the area can take up to a year or more to sell FINISHED and ready to move into.?

[buildersmate]

Mortgage offers do traditionally have 'lifes' on them, simply because the mortgage company does want to get on with lending money. However whether that is true now in these difficult times, I'm not sure. If you know which lender they are with, why don't you phone them and ask (about the principle - not whether this specific mortgage has an end date).
Can't answer most of your other questions, other than they seem to be taking much of the planning risk in the valuation spread that you have clearly analysed for yourself. If you wanted the planning risk mitigated and hence more of the value realised to you, I would expect you to have gained the planning.
The property has to be valued against what it is now - not what it might become (plus a bit).

[Oneeyedvic]

As a finance broker I can tell you that in this current climate there are deinitely life spans on offer letter. And if it does expire on Tuesday then it is too late already - as there is no way that the mortgage can be drawn down on Tuesday (since I presume that deposits have not been paid etc).

They may have their own timetable - eg the mortgage has to be taken in 2 weeks time, so if you don't agree on Tuesday then there won't be enough time to complete.

With regards whould you take their offer - well you ar getting �50,000 more that the value of the property. I don't know how much it would cost to do up these properties or if they are borrowing that money as well.

If they plan to make �25,000 profit and you are looking at taking away a possible 20%, then they may think again.

If you have no mortgage on the property and don't need the money, then you could hold on - but of course there are not many people who can get mortgages for development at the moment, so teh number of buyers is much smaller than a year ago.