Nightmare between exchange and completion of house sale

Lootos

agrinnall wrote: »

This is a key point. As you are not living in the property I would assume the gap is not at your request. Given what has happened I would be instructing my solicitor to push for bring completion forward to take place as soon as possible.

He is not accepting early completion

ILW

i would suspect he is planning on selling on, and does not have the funds to complete until he has sold the place.

pinkteapot

ILW wrote: »

i would suspect he is planning on selling on, and does not have the funds to complete until he has sold the place.

Exactly what I was thinking too, although I don't see how he could make the finances work - he wouldn't get any funds from a buyer of it until exchange, and no buyer's solicitor in their right mind will let them exchange contracts until the vendor legally owns the property (at completion)!

Strapped

pinkteapot wrote: »

Exactly what I was thinking too, although I don't see how he could make the finances work - he wouldn't get any funds from a buyer of it until exchange, and no buyer's solicitor in their right mind will let them exchange contracts until the vendor legally owns the property (at completion)!

It's possible to complete on the purchase and exchange/complete on the sale on the same day (but not advisable!)

I imagine that the buyer just wants to make the time between completion and sale as short as pos but they are bloody cheeky and any issues like them taking out a load bearing wall and the flat collapsing onto the one below etc would be the responsibility of the OP so I would personally tell them to stop all works immediately and you withdraw the right of access.

silvercar

I would be worried that the buyer is looking for a high mortgage and needs to make improvements to the property to get a high valuation to secure his mortgage.

If he is a developer it may be the highest mortgage he can get has a loan-to-value ratio of say 75%.

Making up figures to illustrate:

Say agreed price is 150k - say he wants a mortgage of 150k, so he makes an effort to make improvements to add value to the property and hopes for a valuation of 200k, then his loan-to-value ratio of 75% would give him a 150k mortgage. So all it has cost him is the renovation costs.

If he had bought without renovating he may only have been able to get 75% of 150k ie 112.5k. So now he has a higher value property - more rental income or greater sale value and has to put less money down to get the deal.

Judith_W

I reckon if he is looking to rent it out after, rather than having a void of 2 or 3 months whilst the work is being done, he is doing in before he needs to pay for it. Doesn't help the situation, my sympathies.

maninthestreet

I don't understand why you gave the buyer a key to the property when the work they wanted to do was to the EXTERIOR of the property.

DRP

maninthestreet wrote: »

I don't understand why you gave the buyer a key to the property when the work they wanted to do was to the EXTERIOR of the property.

kettle/toilet!?

Lootos

maninthestreet wrote: »

I don't understand why you gave the buyer a key to the property when the work they wanted to do was to the EXTERIOR of the property.

Because he insisted and the agent insisted one of the works had to be done from the inside. My mistake was believing this license would limit him to Only the agreed works. Not a mistake i'll forget.

go_cat

OP what has your solicitor said today about this?