Vendor wants 6 months between exchange and completion

shrublander

Our vendor is wanting to buy a brand new house. The developers will get to work on it after contracts are exchanged - it will then take about 4 months. We have sold and are about to move into rented. Vendor has asked us to exchange in, say, 4 weeks, so that he can confirm new house, but delay completion until February when new house is ready (rather than him moving into rented). We had hoped to be in rented for only 3 months - this will make it 6 months. We will be negotiating on price, but are there any potential problems or pitfalls of such a long time between exchange and completion?

theartfullodger

In your shoes I'd be sympathetic (-ish), say how difficult for him & how he needed somewhere to live - then suggest he rents...

I want a Helicopter but can't arrange to get one... just because someone wants something don't mean they get it...

Tell him either sensible time-scales or "Go forth & multiply"

Cheers!

Lodger

bdl1brick

There is no guarantee that the new build will be ready in six months so they would be better off moving into rented for now as they might end up having to go into rented anyway if they are tied to a contract.

The other problem is that is something dramatic happens with property values up/down by the time of completion one of you may be trying to pull out, even if you have exchanged, that could create even more complications.

I would agree theartfullodger and politely suggest they rent somewhere so you can get into your new place!

kalaika

I would have thought that the most likely pitfall that you may find is that the six months quoted may turn into seven months, then eight, then nine...

If the developer isn't going to start work on his house until you exchange then it'll only take something small over the next few months and the whole project may end up dragging out a lot longer than thought. Especially as we're now approaching winter, poor weather could cause a delay to building work, a supplier problem could cause a delay to the delivery of materials, there's usually a higher rate of employer illness over the winter that would cause a slower build rate, etc...

Maybe I'm being too pessimistic, but in my experience, if you rely on building work running to time, it invariably won't...

chickmug

Apart from the help so far there is no legal reason why there can't be this prolonged gap between exchange and completion. But at exchange there must be a completion date so even if the sellers date goes back they can't delay completing without your agreement.

I agree with comments so far they should go into rented.

barnaby-bear

shrublander wrote: »

Our vendor is wanting to buy a brand new house. The developers will get to work on it after contracts are exchanged - it will then take about 4 months. We have sold and are about to move into rented. Vendor has asked us to exchange in, say, 4 weeks, so that he can confirm new house, but delay completion until February when new house is ready (rather than him moving into rented). We had hoped to be in rented for only 3 months - this will make it 6 months. We will be negotiating on price, but are there any potential problems or pitfalls of such a long time between exchange and completion?

IT will mean you probably won't have a mortgage offer at exchange so would have to be 100% confident you'll get one at a reasonable rate nearer completion as you'll be obliged to buy. Most mortgage offers don't last that long and where rates will be in 6 months or the year it could in reality take is anyone's guess....

shrublander

Thanks everyone for your help and suggestions. The agreed completion date will be end of February or earlier by mutual agreement - definitely not later ... but with a long time between exchange and completion how can I guarantee the condition is as it was when we agreed to purchase? Does anyone know how we can check on this? A mutually agreed independant survey?

Running_Horse

I suggest you listen to the good advice above.

chickmug

shrublander wrote: »

Does anyone know how we can check on this? A mutually agreed independant survey?

This WILL cost you unless you intend to ask the seller to pay half?

It will be a pain to do and would involved a digital photo report that both parties are advised to agree. It will NOT be in the same condition as there will be wear and tear.

tek-monkey

Sorry, but there is no way I'd be up for this. I'd tell them to call me in 4 months, and if I've not found somewhere better I may still be interested. Anything could happen regarding house prices and interest rates, and I would never want to take a risk like that without having the benefit of actually living in the house!

Alternatively, why not ask them to cover your rental costs? They'd have to rent, so if they don't want 2 moves....

loracan1

shrublander wrote: »

Thanks everyone for your help and suggestions. The agreed completion date will be end of February or earlier by mutual agreement - definitely not later ... but with a long time between exchange and completion how can I guarantee the condition is as it was when we agreed to purchase? Does anyone know how we can check on this? A mutually agreed independant survey?

How can you be 100% of this? As has been said earlier in thread, two months turns into three etc etc...

But really, why should you be put into the position of renting to make their life easier - they've got a buyer for their house and they should be pulling out the stops to keep their buyer!

And albeit not a common situation, just check out this thread where the vendor wanted a delay between exchange and completion.