Offer accepted from buyer, can we delay completion?

nisha.p

Hi

We accepted an offer on our leasehold property about a week ago however since then i have been having second thoughts as even though the offer is a good one i believe we've rushed into it too quickly.

1) We will end up paying a mortgage repayment penalty if we complete before the end of Dec 2015 which would mean around 10 k

2) We incur about 2k per month renting a 1 bed flat after we complete, we currently are looking to buy in an area where our parents live outside london however there are no properties we really like in our price range so renting around where we currently live would be sensible to commute to work etc..

3) I am due to have a baby in Jan 2016 so it would either mean moving into rental or with our parents out of london and doing the long commute in for work if we end up completing the sale sometime in Sept / Oct 2015


I have already mentioned to the agent that we are looking for a property and the response was that the buyer would work at our pace. Which is great but would it be reasonable to request a completion in Feb 2016 so we can get over mortgage repayment penalty charges and paying rent which could mean saving 15K by that time ? I know this is totally unprofessional however, i only went into sudden panic mode after the offer was accepted and started to think of all these things.

We also live in London so i don't think putting the property up on the market is an issue and maybe we could get a better offer by next year but we are happy with the price the buyer has offered.

Any thoughts from anyone please ?

CBN

The buyer won't wait that long imho as even if he was prepared to, the risk you would pull out and re-market given where prices are going just makes it a non-starter.

Immers7

CBN wrote: »

The buyer won't wait that long imho as even if he was prepared to, the risk you would pull out and re-market given where prices are going just makes it a non-starter.

You think prices are going to drop in London at the start of next year?

I would take it off the market and start again next year. Apologise for wasting the buyers time.

Hoploz

I don't see why you'd prefer to wait till feb 16. You could complete immediately your redemption penalty period runs out in December, then you'll be in and settled when baby comes.

Your buyer might wait a few months for you to find something and complete the chain, then a couple of months for the chain to be ready to actually move. There's only a couple of months adrift. It depends how much they love your house and how little else is on the market for them to buy. If prices are increasing then they are getting a good deal so they will wait even longer.

Is your move meaning that you will have to give up your job? Surely if it's tied on to your maternity leave it'll be helpful - you'll get a year off anyway before considering the commute.

I don't get why you suggest to sell and rent.

nisha.p

Hoploz wrote: »

I don't see why you'd prefer to wait till feb 16. You could complete immediately your redemption penalty period runs out in December, then you'll be in and settled when baby comes.

Your buyer might wait a few months for you to find something and complete the chain, then a couple of months for the chain to be ready to actually move. There's only a couple of months adrift. It depends how much they love your house and how little else is on the market for them to buy. If prices are increasing then they are getting a good deal so they will wait even longer.

Is your move meaning that you will have to give up your job? Surely if it's tied on to your maternity leave it'll be helpful - you'll get a year off anyway before considering the commute.

I don't get why you suggest to sell and rent.

So our mortgage expires by 31st December 2015 after which we will be paying the variable rate, meanwhile we don't have anything we have put an offer on yet so this could mean having to rent if this sale completes within 3 months or so. Even if we decide to complete say 1st jan 2016 that would still mean a 5 month wait for the buyer. Is this reasonable ?

Old_Git

tell your buyer you don't want to complete before December ,see what they say .
If they say ok ,then you have a buyer .
If they say no ,put it back on the market .

giraffe69

Of course, completely absurd to think about this before you accept an offer, Much better to cause the buyer grief and expense.

PixelPound

Well it depends who you get to do conveyancing. A friend of mine used an online one recommended by their EA (IIRC the large no-fee mortgage brokers recommended in Martin's guides also recommend business to them) and it took nine months from offer to completion. He said he would not recommend them to his worst enemy (there were probably other complications, but nine months!!).

You have to remember that until exchange, either side can pull out, and at exchange the completion date is set.

Hoploz

giraffe69 wrote: »

Of course, completely absurd to think about this before you accept an offer, Much better to cause the buyer grief and expense.

OP has accepted an offer.

Whether or not to discuss it further at this stage, I'd say depends on what the terms of the offer were really.

Did you say, yes I accept your offer, and am willing to move out and rent if I can't find anything in the next few weeks, so you can get in quickly? Or was it accepted on the basis that you haven't found anything to buy yet, but you are looking?

Completion in five months is not quick, but neither is it out of the question. It takes a while to get a complete chain anyway - you find a house, then they have to find an onward purchase too ... It all takes time.

I would say aim for completion in December, so just keep looking in your chosen area with this in mind.

2nd_mortgage

Everyone's circumstances are different. You will receive lots of different advice here but only you can decide what is best for you.
The only thing I will say is, whatever you do, please be honest & upfront with your buyer. It is always the best strategy in the long term.

TBeckett100

Can't you port the mortgage?
It does sound like you haven't thought through your timescale.