Sellers wants long gap between exchange and complete

rich.mike

Had an offer accepted on a house 1.5 weeks ago, after a quick survey the mortgage has been approved.

Today I had an email from the estate agent telling me that there is an issue with his mortgage that if the seller completes before November he has to pay a £5,000 redemption fee. He has only just found this out because he had offered on a property that needed a 28 day turnaround.

What can I do in this situation? I don't want to lose the house but a 3 month gap between exchange and completion seems a long time. My mortgage approval is only valid until mid September so I would have to extend this.

Any thoughts? I'm new to this whole buying a house process and this is not a situation I have heard of before. I would ideally like to move in as soon as possible.

Thanks for your help

Rich

libf

Are you sure the mortgage offer is only valid into September? Seems very short if you only just got the offer...

Sounds like he's buying a new build. Quite common to have a long gap between exchange and completion there. If you're not happy with it, then you'll have to cut your losses and pull out.

rich.mike

The reason for the gap if because of the redemption fee on the mortgage if he completes before November.

Just found my mortgage is valid for 6 months so this shouldn't be an issue, I just want my house earlier!!!

dekoder

Seems like the vendor is unwilling to pay £5k redemption fee so your choices are:
- wait
- pull out
- pay the fee yourself (increase offer by 5k)
- pay the fee together with vendor.

House purchase usually takes few months so completion in november is not that unreasonable, though not short (my example: offer in early september, completion in january).

stator

I would not accept that long a period between exchange and completion. There are too many things that could go wrong and leave you with serious legal problems if you cannot complete the purchase.

If they want to delay I would also delay exchange of contracts until close to completion.
Or walk away completely

cattie

Most house sale/purchases take an average of 12 weeks from offer to completion in my experience, so completion in all likelihood would be November anyway in your case. Perhaps you could even get a bit knocked off of the agreed price if it were possible for you to hang on, or have an item or two thrown in by way of a thank you.

Has your solicitor given you any advice?

p00hsticks

How far is your solicitor on with the searches etc ?

I think you might be being a bit optimistic thinking that you are that close to exchanging contracts

As cattie says, 12 weeks between offer and completion is pretty average so a November completion date seems realistic to me....

rich.mike

Thanks for all the advice guys. Seller has agreed to leave all the white goods in the property as well as curtains and light shades as a gesture of good will.

It's not the ideal situation for me but I'm happy with the outcome. Looking to exchange in the next couple of weeks or so. Mortgage on the property has been approved - very happy!

PixelPound

You do know that you will need insurance in place for exchange too.

rich.mike

Yep, got a quote of £108 a year for building a contents insurance - much lower than I had budgeted!

libf

Cheap insurance often means that when you need it you find it doesn't cover as much as more expensive insurance and is more costly in the end. Not something to cut corners on.