Feeling pressured into Completion date

missvp

Hi new here and looking for some advice!

I will try to keep it basic.

Currently being removed from mortgage with partner, and will be purchasing my own property. Found a house which had a 28 day exchange deadline (large housing estate being sold off by one seller). This started 3rd Dec, so clearly clashes with the Christmas period and Estate Agents/Solicitors being closed down anyway, so I thought that there would have been some leeway given to this (and actually was told there would be, and we could potentially exchange in new year instead).

Even though it was 28 day turnaround, it appears I have been the one chasing solicitors to see if paperwork has been received, and now the pressure has been put back on me as some are missing/not yet received etc. I was only informed a couple of days ago that paperwork was missing, even though I had scanned documents over prior to posting two weeks ago and asked if there was anything amiss. My Estate Agents have supported with sending over documentation due to this.

I am due to exchange today/tomorrow, however Solicitors have sprung it on me today that actually we could complete then too. I have said I am not ready to, and so far in the process had not been made aware of this. I am still making payments on my current mortgage, and so will need to await removal from this prior to completion, because it means making two payments which I cannot afford in one month!

My Solicitors have told me that the Sellers wont be happy to wait for this to happen, even though I am ready to exchange, because it is not a condition of my mortgage offer that I must be removed from current one prior to completion. I was made aware of the condition yesterday by the Solicitors, but I stated then that I would NOT be happy to complete prior to being removed, to which my Solicitor said ok. Today, I have been told, that no they won't wait for that for completion to happen.

Baring in mind it is Christmas, I still technically have time left to exchange, and that I literally cannot afford to pay out two lots of mortgages whilst I await removal from current, where do I stand? I have contacted my Estate Agents and am awaiting a response as they are involved with all the houses so may have a clearer idea.

What is my bargaining power once we have exchanged, or should I make it clear that I am only happy to exchange if this is taken into consideration? I am reluctant to now transfer funds and for it to be legally binding without having clarity on this, however I am also conscious that it is Christmas time and I have less than a day or so to get this done. It is really stressing me out

Any advice?

davidmcn

You have zilch bargaining power after exchanging. Just tell them they'll need to wait - it's not as if they'll find another buyer able to move any faster than you.

elverson

The completion date is part of the contract which you sign at the point of exchange, so you need to have the completion date agreed before you exchange.

marksoton

Sounds like the developer is trying to max their cashflow.

Is the property ready to move into?

chris_m

marksoton wrote: »

Sounds like the developer is trying to max their cashflow.

I bet their accounting period ends on 31/12/15.

missvp

I am currently negotiating the completion date so have not yet deposited money for exchange.

These aren't new houses, so no developer involved. It is an older estate which has been bought off and is being sold on. Yes they are ready to move into with no chain from the sellers side.

I am pushing for a completion date a week later than what the Estate Agents said was the latest, which allows another pay packet to support should I not be off current mortgage still.

I take it I potentially am at the will of the Seller. They could pull out if someone could move faster, but I am not sure how likely that is around Christmas time, especially with places being closed, and especially as the deposit is ready there to go. I guess it is just a waiting game for them to come back to me.

I don't want to lose the house over the sake of a week, but at the same time I don't want to put myself at serious risk over affordability!

paul_1

I was in a similar situation many years ago when buying a new house - asked to bring the exchange and completion date forward so they could recognize the sale in their current financial period (which I suspect is what is happening here with your builder).


You are not in a bad position here. It sounds like you are able to exchange and complete before Xmas - it is just the financial loss of paying two mortgages that is worrying you.


So offer to exchange and complete before Xmas for a (say) £750 reduction in price. Make sure it covers your additional mortgage payment plus a few quid for a drink - but don't be greedy.


If they really want your money before the end of the year they will be open to an offer like this.


After all, they are unlikely to be able to sell the house to anyone else (and exchange and complete) before the end of the year.

marksoton

missvp wrote: »

These aren't new houses, so no developer involved. It is an older estate which has been bought off and is being sold on. Yes they are ready to move into with no chain from the sellers side.

A strange setup.

Personally i'd circumnavigate the EA and try to speak to the Vendor directly.

Also is it worth speaking with your ex partner to see if they'll take on full responsibility for your current mortgage a little early? If they don't pay the mortgage they're defaulting on their own property they live in...

Alter_ego

paul_1 wrote: »

So offer to exchange and complete before Xmas for a (say) £750 reduction in price. Make sure it covers your additional mortgage payment plus a few quid for a drink - but don't be greedy.


If they really want your money before the end of the year they will be open to an offer like this.


After all, they are unlikely to be able to sell the house to anyone else (and exchange and complete) before the end of the year.

Good suggestion but wouldn't alter the OP's cash flow problem-Pay 2 mortgages in one month.

getmore4less

Investigate the vendor
as others have said
If they bought a job lot at a discount they may have interest/stage payment/accounts that need cash flow this year.

room for a discount.

molerat

marksoton wrote: »

A strange setup.

Not necessarily. Ex MOD, NHS, Police, AEA, HMP. loads of them about.