Long wait until completion advice

James_Patrick

Hello,

If anyone can give me some advice on this it would be greatly appreciated. Basically we have found a house we like but the sellers can't complete for 6 months. They have bought a new build which won't be completed until October and want to stay in the house until they can move in to their new place. As I understand it, they need to get someone to agree to buy their house so that they can buy the new house.
We are ftb's and so are able to wait but I am a bit worried about the possible pitfalls of waiting so long. Does anyone have any experience of this sort of sale?

LandyAndy

Ask them to exchange contracts, thus legally binding them to the sale, and set the completion date to their timescale if that suits you.

James_Patrick

Hi, thanks for the reply one thing I am not sure about is mortgage rates are pretty good right now and I think they might go up in the next 6 months if I find a mortgage deal now and there is a problem with them moving out in 6 months, I could lose the mortgage deal.

I suppose I have to say that they need to complete on that date whatever happens, is this fair?

G_M

Your mortgage offer will only be valid for a certain period of time. Check it. If Completion is beyond that date, you'll have to re-apply and might get a less good deal or even no mortgage at all, but still with a legal obligation to buy!

elsien

Plus you need to bear in mind what might happen if their new build takes longer to finish than expected. So you'd need to make it clear that you want to move in by the date agreed between you, and if there is any hold up, you'll be expecting them to rent somewhere in the interim as opposed to keeping extending the moving date. Or whatever variation on this best suits you.

LandyAndy

elsien wrote: »

Plus you need to bear in mind what might happen if their new build takes longer to finish than expected. So you'd need to make it clear that you want to move in by the date agreed between you, and if there is any hold up, you'll be expecting them to rent somewhere in the interim as opposed to keeping extending the moving date. Or whatever variation on this best suits you.

Exactly as I said. Ask them to exchange. The contract will set the completion date.

The question of mortgage offers may still be a problem.

DVardysShadow

elsien wrote: »

Plus you need to bear in mind what might happen if their new build takes longer to finish than expected. So you'd need to make it clear that you want to move in by the date agreed between you, and if there is any hold up, you'll be expecting them to rent somewhere in the interim as opposed to keeping extending the moving date. Or whatever variation on this best suits you.

So it comes to the end of the contract and the new build won't be ready for another 8 weeks. At least. Vendor says "It's only 8 weeks, I don't have temporary accommodation and it would be a total waste of money to commit to a 6 month rental".

I would say they should move into rented within 6 weeks of exchange and OP should complete.

ruggedtoast

I would be wary of exchanging with a 6 month gap if you need a mortgage. Even if this is still within the provenance of the original mortgage offer the lender may run additional checks after such a long time.

If they find your circumstances have changed you could have a problem.

I would ask why these people are marketing a place they won't sell for 6 months. Sounds like they are asking a bit much.

tyllwyd

I agree, unless you are happy with a six month wait, I don't think the vendors are being reasonable asking you to wait that long. I'd be really reluctant to exchange six months beforehand - anything could happen in that time and there is no benefit to you in taking that risk.

I'd agree with other posters that it is down to the vendors to move into rented accommodation in the meantime if they want to sell now.

James_Patrick

Thanks for the advice everyone you have basically confirmed things I have been thinking about. The house has fallen through twice due to the 6 month wait, I imagine due to the fact that people in a chain simply cannot wait that long. We are prepared to wait but as long as the house is the right price and we have just put an offer in so I will let everyone know how we get on.

I think the best thing we can do is make sure that the vendors can move into temporary accommodation after the completion date and that our offer is subject to this, it only seems fair.

Thanks again everyone and I will post later on today to let you know how I get on.

ruggedtoast

At least I would be asking them to knock money off for the extra rental payments you would incur.