Advice please!! Building during exchange/completion

mommiedearest

Our buyers want to carry out extensive building work on property before they move in ie between exchange and completion. We are in rented accommodation away from area so no problem to us but just feel a little uncomfortable. Solicitor says we will have deposit if sale does not complete. Any thoughts out there?

silvercar

Don't do it. What happens if the mortgage company wants to re-value just before completion and the place is a disaster zone mid works? the lender could withdraw the mortgage and your buyers unable to complete. Leaving you with a property that would be difficult to sell in a mid-building-works condition.

Doozergirl

No.

Why on earth would your solicitor recommend doing that? If they want to do work they need to wait until completion. If the want to do work sooner than the anticipated completion date they should complete quicker!

It is your property still regardless of whether someone has contractually commited to buying it. And there is no chance that I'd ever allow anyone to come in and do major building work on one of my properties, there are far too many risks involved - building work involves destroying things before they get put back together again. So they rip out the kitchen and then discover they don't have the funds to complete :eek:

Cannon_Fodder

What if they accidentally collapse half the house...a minefield of which insurer pays, rebuilds etc.

They should have a delay between completion and moving in...if that's not convenient, what are they offering you, over and above their contractural obligation - the deposit, to thank you for mitigating that inconvenience?

Some cash up front and double deposit might offset the risks, I suppose.

michaels

I can see how the buyer might not be able to do the deal without using this time - I did something similar when I moved but luckily had enough savings plus bridging from family to be able to own both properties simultaneously for 2 weeks. I would have thought with a big enough deposit and a suitable contract this should be OK - IE enough deposit that in the worst case if they stop building after demolishing you have enough funds to put right and cover your costs and probably compensate you for the fact that prices are falling.

Really2

Never hand over the keys until you complete.

Would you give someone your car keys on the premise they are going to buy it?
I think not, so why would you do it with something worth 10X-20X more at least.

They could squat in for all you know, wreck it and you would still have to pay to get them out.

I know it sounds untrusting. But don't give them access to the house until they are the rightful owners.

The legal work is there for a reason, to protect both of you and make sure it is done correctly.

Jowo_2

Well when they get the keys on completion, they can do whatever they like to the property. The type of work they suggest is really something to be done between completion and moving in....

mommiedearest

Thanks for all replies. Just a bit unsettled because house sale fallen through twice and really need this to proceed. Also our gardener called at house one day and found buyers measuring up inside house. EA didn't inform us they were visiting so wonder if they've had keys on other occasions we don't know about. This house buying/selling makes you lose faith in everyone!!!

Doozergirl

mommiedearest wrote: »

Thanks for all replies. Just a bit unsettled because house sale fallen through twice and really need this to proceed.

If you have exchanged then the overwhelming liklihood is that you will complete.

Your buyers request is not a normal one, nor is it something that people would deem an acceptable one either so I wouldn't give it a second thought. Saying no is not going to collapse your sale.

Really2

mommiedearest wrote: »

This house buying/selling makes you lose faith in everyone!!!

There is not harm in that short term for the sale.

Covering your @ss is sensible, not untrusting. If people demand more like the above, you are right not to trust them.
It is you who stands to lose the most.

Also if you let them do it you would come across desperate. What is to stop them at compleation with walls knocked down saying we want £10,000's knocked of or we walk away.

When it comes to money it is better to play it by the book. If people don't want to play it by the book they are not to be trusted IMHO.

mommiedearest

Thanks to you all. Just needed an objective view on all this and confirm that what they are asking is not in OUR best interest.