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FTB wants to delay completion..
notsurewhereIstand
Posts: 99 Forumite
..so they don't end up starting to pay their mortgage too early.
It appears they want to minimise the period between their rental ending and the mortgage starting and don't want a bit of an overlap just in case completion is delayed.
Is there anything I can do to push them say 2 weeks earlier?
It appears they want to minimise the period between their rental ending and the mortgage starting and don't want a bit of an overlap just in case completion is delayed.
Is there anything I can do to push them say 2 weeks earlier?
0
Comments
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Presumably they pay their rent in advance, so let's say 1 July.
If the house purchase completes on 31 July, they won't pay their first mortgage payment (at worst) until mid-August and it will be just a single month, plus one day's interest.
If with a clearing bank, they won't pay until 1 September.
What more do they want?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Yeah, I just don't get it, do most FTB'd do a week or so overlap in these situations?0
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No idea.
Their call if they want an overlap. You can't realistically get more than six weeks without making a payment though.
It's difficult to see where they are coming from.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
notsurewhereIstand wrote: »..so they don't end up starting to pay their mortgage too early.
It appears they want to minimise the period between their rental ending and the mortgage starting and don't want a bit of an overlap just in case completion is delayed.
Is there anything I can do to push them say 2 weeks earlier?
only if you have an alternative buyer waiting in the wings
tim0 -
tim123456789 wrote: »only if you have an alternative buyer waiting in the wings..
Would the EA 'arrange' one if I asked them nicely?0 -
notsurewhereIstand wrote: »Would the EA 'arrange' one if I asked them nicely?
Dunno, you'll have to ask them (it does sometimes happen)
tim0 -
Suppose you want to exchange on Mon 1st July with completion on Fri 5th July. Suppose to that your FTB is in a tenancy where the rental period begins on the 3rd of the month.notsurewhereIstand wrote: »Yeah, I just don't get it, do most FTB'd do a week or so overlap in these situations?
Now, the standard advice on this forum is that the FTB should under no circumstances give notice until exchange has been confirmed. We have seen too many FTB's on this forum give notice before exchange and come unstuckwhen their vendor fails to exchange. They are faced with imminent homelessness and the prospect of having to commit to another 6 month tenancy if the sale falls through
Once exchanged, the tenant can give notice by 1st class post with proof of posting. Assume notice is sent on Tuesday 2nd which is deemed to arrive on Thursday 4th July. Tenant has missed giving notice to expire on 2nd August and is now committed until 2nd September.
FTB must find 2 months rent plus mortgage payments to cover most of July and the whole of August. This is an issue not faced by any of the homeowners in the chain - many of whom get up tight about the apparent dithering and pickyness of the FTB over completion dates.
Exchange just before the end of the rental period allows the FTB to get their notice in for just a month ahead - and if completion is 2 or 3 weeks ahead, the FTB only has to cover rent and mortgage for 2 or 3 weeks, which IMO is reasonable.You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'0 -
No one would want to be paying to rent a property AND paying a mortgage on their first house for an extended period.
No sensible tenant will give notice till they have somewhere guaranteed to move to (ie contract Exchanged).
Most tenances need amonthsnotice, or more.
So it is perfectly reasonable for a FTB to press for dates that take the above into account.0 -
We are FTB and are in this position valhaller has described it pretty well. We have budgeted for a 1 month overlap but dependant on the date of completion and the gap between exchange and completion this might stretch to 2 months which would be pretty hard to find the extra funds for. If its a case of a week or so I'll be asking to delay to avoid getting stuck with the extra rent and a mortgage payment! Sorry prob not what you wanted to hear.0
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Good points ValHaller, thanks.
Are 'whole month' clauses common in tenancy agreements? i.e. you must give notice by a certain date or you have to stay for the whole of the month.0
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