Exchange now Complete in SIX months - What would you do ?

pinkshoes

Willow101 wrote: »

There's no guarantee that it'd be ready in six months but the solicitor would put a "stop date" in which would say if we haven't competed by date X we get our £50k (!!) deposit back and can back out of the sale.

We haven't done anything yet we're just trying to work out how we feel. Options include saying yes but reducing the price as it carries risk or saying yes if it happens in the original timescales (August) or just pulling out.

There's no other people in chain, we're not in a chain and people we're buying from are buying a new build.

I would agree, if your mortgage allows it, but i would want more than the deposit back if they fail to complete. I would also want all expenses and say £5k compensation.

nkkingston

A friend just got the keys to her "it'll definitely be completed in January, even with the bad weather" new build house last week, and it wasn't even completely finished - the decorators were still painting away when they started moving in and the driveway is rubble. if they're waiting for a new build they should rent, or you should have a contract that'll take 'em to the cleaners when the developer inevitably overruns.

pinkteapot

I would say no to exchange now with six month completion with a stop-date. Might possibly have a given it some consideration if it was a 'normal' completion where the seller would definitely HAVE to leave on the date, if the house was perfect enough. With our current house we had two months between exchange and completion.

I wouldn't pull out. No point burning your bridges yet. Just say you'll pause where you are in the process and will exchange nearer the time so you can have a more typical amount of time between exchange and completion. Say that you wanted to move sooner so you're going to start viewing houses again. If you find one that's proceedable faster then you'll go with that. If your vendor is ready to move before you find something else then you'll go ahead.

If they're worried about losing you as a buyer (eg if they're worried someone else won't pay as much), they might consider completing and renting. If they found a buyer easily then they'll just stay there and wait, and replace you if need be.

As I said, I can't see any point in pulling out until you've definitely found something else that you like as much?

Bossworld

Back in 2012, we exchanged about 2 months before completion - we were renting a flat on a year's agreement at the time so didn't want too much of an overlap, and they were moving in with their parents again.


Six months would be a very long time though, regardless of this whole Brexit debacle.

Willow101

Thanks everyone, you've been so helpful.

Heard back from bank this afternoon and they will not extend our product so we'll have to reapply in about a month and we can't exchange without having a valid mortgage in place so that's forcing our hand in the "what do we do next" bit!

Definitely anxious about having a long period between exchange and completion and will try to close that to nearer two months but EA has already suggested they won't go for that.

hazyjo

THEIR EA - don't forget that. They work for the vendor and don't have your best interests at heart. You hold all the cards but you're not playing them very well

If you pull out, they lose the house. They are trying to have their cake and eat it.

Good luck.

Jx

paddy's_mum

Tell me again (cos obviously missed it first time of reading) WHY exactly you are the ones taking all the risk to fulfill their dreams?

Willow101

At the moment we're in limbo and not taking any risks at all. Everything's at a standstill.

IF we continue with the sale we'd need to get a new mortgage and we'd then need to negotiate the terms we proceed on but at the moment it's a standstill.

I do think you're right when you're saying we hold the cards it's just at the moment we don't really know what to do with them - any advice always v welcome.

The one thing we're keeping at the back of our mind is we could lose the house (there's still 6 months for them to find another buyer) - which might be okay as there will be more, but we are keeping it in mind.

tlc678910

Similarly to the poster above I am thinking what on earth is in it for you?

If house prices fall after you have exchanged you are committed to buy the house. If the bank pulls your mortgage as the house is worth less you will be liable for the deposit and unable to buy (? - depending on your deposit and loan to value.

If property prices fall now after Brexit you may see houses that you could not have previously afforded that you could afford if you were not committed.

This is of no benefit to you - tell them they either exchange /complete normally (go into rented) or you will exchange/complete normally in the future when they are ready (if you don't find something else and pull out).

Any money you will lose on mortgage fees, surveys is small change compared to the risks involved imho.

Tlc

Smodlet

Yeah, I realise it is different with new builds but, in the rest of the market, exchange and completion frequently/usually happen within days of each other, if not on the same day.

I think perhaps you are being taken advantage of due to your inexperience? Apologies if this is not the case.