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Been offered a house in 6 months.

A friend of the family, has offered us their house at a great price, and we love the house. The problem is their new house is being built and wont be finished for at least 6 months.

The house is valued at £147,500 we can buy it for £133k. This would allow us t keep our existing house and rent it out. How would we go about concreting the deal so that we would wouldnt complete the deal until their house is finished??

Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Exchange Contracts with a 6 month Competion date, or an open date but tied in to some kind of maximum period just in case it starts dragging on forever. You solicitor will help with this.

    Do you want the option to review the price in 6 months in case prices tumble? This could work to your advantage OR your detriment!

    Of if you trust the friend, then wait 6 months before your Exchange - but that is not 'concreting the deal '.
  • gwynny
    gwynny Posts: 13 Forumite
    would i need to have my mortgage in place, now or would I do this in 6 months??
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    gwynny wrote: »
    would i need to have my mortgage in place, now or would I do this in 6 months??
    Before exchanging contracts. Mortgage offer should be valid to the last completion date possible under the contract. This may be difficult.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • danothy
    danothy Posts: 2,200 Forumite
    Part of the Furniture Combo Breaker
    edited 27 March 2011 at 10:36PM
    I am sure I have also seen advice on this board suggesting that the buyer insures the property from exchange, so if you exchange early then you could well be insuring a house you aren't in possession of for six months.
    If you think of it as 'us' verses 'them', then it's probably your side that are the villains.
  • gwynny
    gwynny Posts: 13 Forumite
    So basically i treat the sale like any normal sale for now.

    Once my mortgage is in place I inform the solicitor about the six months issue, Can i extend a mortgage offer if the Vendors new Build falls into problems???
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    gwynny wrote: »
    So basically i treat the sale like any normal sale for now.

    Once my mortgage is in place I inform the solicitor about the six months issue, Can i extend a mortgage offer if the Vendors new Build falls into problems???
    I would be very careful to get a written confirmation that the mortgage offer will remain in place for the (6 month) period in question.

    You do not want to get an offer, Exchange Contracts, wait 4 months and then be told the bank's lending policy has changed and your offer is being withdrawn (leaving you witha contract due to Complete but no funds to pay with!).
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