House completing on Friday but need to sell as soon as it completes

marksoton

lauravenue wrote: »

Basically we've exchanged, paid a lot of money and are completing on Friday, but since our exchange we basically need to live somewhere else, due to many family related reasons.

Take a deep breath and take a step back. Is your position really so untenable?

agrinnall

I think you should weigh up the costs to you of moving twice and probably selling at a loss against the cost of pulling out of the purchase now. If the latter costs you less then you should consider doing it, although your seller will hate you forever for doing it.

Rain_Shadow

agrinnall wrote: »

I think you should weigh up the costs to you of moving twice and probably selling at a loss against the cost of pulling out of the purchase now. If the latter costs you less then you should consider doing it, although your seller will hate you forever for doing it.

They've exchanged. Those costs are going to be substantial. A lot more than the cost of two moves. They were looking at houses over £300k so the lost deposit alone will be £30k minimum

TrickyDicky101

Rain_Shadow wrote: »

They've exchanged. Those costs are going to be substantial. A lot more than the cost of two moves. They were looking at houses over £300k so the lost deposit alone will be £30k minimum

Pulling out may also result in a specific performance order which would result in them having to complete on the purchase anyway at the same time as losing plenty in legal and finance costs. Pulling out is a terrible idea.

eddddy

TrickyDicky101 wrote: »

Pulling out may also result in a specific performance order which would result in them having to complete on the purchase anyway at the same time as losing plenty in legal and finance costs. Pulling out is a terrible idea.

The only possibility would be coming to an agreement with the seller to cancel the contract.

e.g. "I'll pay you £25k if you agree to cancel the contract."

That might work if it's an investor selling an empty property, but if there's a chain below and/or above... it's very, very unlikely to be feasible.

saajan_12

agrinnall wrote: »

I think you should weigh up the costs to you of moving twice and probably selling at a loss against the cost of pulling out of the purchase now. If the latter costs you less then you should consider doing it, although your seller will hate you forever for doing it.

It's always something to weigh up. OP has two, maybe 3 options depending on what the personal issues are. Here are the main costs I can think of for each - OP if you fill in numbers, it might help to see which is worse.

Fail to complete:
- lost deposit 10%
- seller's costs (removals, hotel, extra mortgage payments, commuting costs.. These may reduce if you let seller know in time and they can cancel removals etc)
- chain costs: Is your seller buying another place on the same day? If yes, costs could escalate

Also, mortgage costs should be minimal if you tell solicitor in time not to draw funds

Buy & sell soon after
- stamp duty
- EA fee to sell
- solicitor costs to sell
- Mortgage early redemption cost
- Mortgage payments until sale (likely 6+ months unless you find a cash buyer)
Also, you won't be a FTB for certain schemes and may be in a chain both ends to sell this and buy new property.

Buy and keep:
Is there another solution such as someone staying in your property / commuting regularly to be near family / rent a room near family for short periods. Ofcourse this is all speculation as I don't know what issues you're facing. Completely up to you if you want to give more details if we can suggest other options or keep that private, both are very much understandable!

agrinnall

Rain_Shadow wrote: »

They've exchanged. Those costs are going to be substantial. A lot more than the cost of two moves. They were looking at houses over £300k so the lost deposit alone will be £30k minimum

I know they have, which is why as well as the extra move costs I specifically mentioned the loss that they might incur by selling shortly after buying. If they had to drop the price by 20% then that would more than offset the lost deposit.

kingstreet

lauravenue wrote: »

We have a mortgage from Halifax, 2 year fixed rate, but I'm unsure what happens to your mortgage when you move. As I said, I'm sorry if I sound stupid but do you take your mortgage with you? Can you keep the same mortgage when moving, without having to re apply? As we chose Halifax for a reason and are happy to keep it but having to re apply to buy a new house would put a dampener on this as we obviously have only just applied for a mortgage now.

Your mortgage rate may be portable.

This means you can avoid early repayment penalties by taking a new Halifax mortgage, subject to status and valuation again and if Halifax will lend, you can transfer the rate from the old mortgage to the new one at completion.

You cannot transfer a mortgage from one property to another and you can't port without going through the application process again.

Rain_Shadow

agrinnall wrote: »

I know they have, which is why as well as the extra move costs I specifically mentioned the loss that they might incur by selling shortly after buying. If they had to drop the price by 20% then that would more than offset the lost deposit.

It's a lot of money and trouble to chance on an if.

hazyjo

If you'd been living in a house that you loved for say 20 years, would you still be saying you needed to sell to live (presumably) nearer to this relative?


Can the 'reason/problem/relative' be moved to you rather than you move to them? (Sorry to be so matter of fact but I can't think of another way of wording it without knowing who/facts - not asking for them, it's irrelevant, but just felt the need to excuse my phraseology!).


Will you/both of you be needing new jobs? If commutable from where you need to move to, perhaps the 'reason/relative' can be travelled to too? Maybe paying for the occasional hotel or staying with that or another relative? Maybe just one of you at a time rather than both?


As above, also depends how temporary/permanent. If temporary, I would seriously think about staying put. If permanent, they will presumably need to adapt their lives which may mean moving nearer to you.


Jx