Extended period between Exchange and Completion

saajan_12

This is all a lot of unnecessary speculating about whether your sellers will be willing to risk breaking the chain / renting. You simply need to ask them.

1. Sellers will need to exchange with a (somewhat) flexible completion on the new build.

2a. OP can exchange at the same time with an identical, flexible completion.
- The chain is complete and the seller has little risk.
- OP carries the risk of house build delays, with the related issues of mortgage offer expiring, change of circumstances over a longer period, putting their plans on hold for months.

2b. or OP can exchange with a fixed completion (June? earlier? later?).
- OP then has the security of knowing they will own and and can move in on the completion date, or can recover any losses from the seller.
- Seller then carries the risk that the new build doesn't follow the same timeline, and may have to move into rented / hotel / with family until the new build completes.

Just ask them.. if you don't want option a and the seller doesn't agree to b. then I'd keep looking and come back to this if its still on the market and you don't find anything closer to the new build being ready.

nicmyles

Are they actually offering a completion date a week before your mortgage offer expires? If so, and you definitely want the property, why not take it?

Then if their property is ready sooner, you can simply re-exchange with an earlier date, if both parties agree.

But you will definitely know you have the property secured as you will have exchanged. All the stuff about them renting or whatever is irrelevant to you - that's their problem.

My worry here would be the deal collapsing with a very long period between offer accepted and exchange. Anything could happen to derail it in the next six months and then you've wasted all that time. While there are risks attached to a long period between exchange and completion as well (for a start, you would be insuring the property, so I would want a payment from them to cover a few months of that), if you want the property, you want to exchange asap under whatever conditions are offered.

If you're not that bothered about the property, and there are lots of other options on the market that you feel you could complete on more quickly, then just give them an ultimatum re: an earlier completion date. But you've got to be willing to walk away if they refuse.

Ara1985

nicmyles wrote: »

Are they actually offering a completion date a week before your mortgage offer expires? If so, and you definitely want the property, why not take it?

Then if their property is ready sooner, you can simply re-exchange with an earlier date, if both parties agree.

But you will definitely know you have the property secured as you will have exchanged. All the stuff about them renting or whatever is irrelevant to you - that's their problem.

My worry here would be the deal collapsing with a very long period between offer accepted and exchange. Anything could happen to derail it in the next six months and then you've wasted all that time. While there are risks attached to a long period between exchange and completion as well (for a start, you would be insuring the property, so I would want a payment from them to cover a few months of that), if you want the property, you want to exchange asap under whatever conditions are offered.

If you're not that bothered about the property, and there are lots of other options on the market that you feel you could complete on more quickly, then just give them an ultimatum re: an earlier completion date. But you've got to be willing to walk away if they refuse.

That would mean completing somewhere around August. Not prepared to wait that long.

There wouldn't be a long time between offer and exchange, the exchange is supposed to take place in the next 28 days, it would be 6 months plus between offer and completion...Maybe I miswrote that somewhere else.

Ara1985

lush_walrus wrote: »

It doesn't sound like you are the right buyer for the vendor. Unless you are in an area where flats do not sell, they are unlikely to put themselves into a situation that is uncomfortable for them such as you suggestion that they complete regardless. I presume from your threats you can buy another similar flat that you will be happy with at ease?

With regards to your vendors deadlines from their developer, if your sale does not carry through they will negotiate with the developer a new exchange date, despite the 28 days unless there is a massive waiting list the developers generally accepts a delay to exchange within a reasonable period.

New builds generally set a rolling completion date not a fixed date you are looking for, your vendor will be advised of this by their solicitor. The below link will be a useful link to educating yourself on the process of new build.

http://www.blasermills.co.uk/why-is-conveyancing-different-for-new-build-homes/

Threats? Wow some people love to exaggerate! Its merely a negotiation and they can take it or leave it. They have said they really want to sell the house to me because I am in a good position. I'm not willing to meet their demands which means me moving into my new place in 6-8 months time so I am giving them my compromise. If they don't like it they can so no and I walk. They can then find another buyer who is seemingly suitable for them. Simple.

tim123456789

Gigervamp wrote: »

If their new build is ready only a few weeks after your completion date, they're not going to go into rented, as the tenancy will be for 6 months.

so they put their stuff into store and book into the Travelodge for a month

tim123456789

lush_walrus wrote: »

It doesn't sound like you are the right buyer for the vendor.

There is no right buyer for someone buying a to-be-completed new build needing to link the sale of their current house.

Almost no buyer will be as flexible as they are having to be

The seller will have to compromise in one direction or the other

and if they wont compromise in a direction suitable to you, walk away

Gigervamp

tim123456789 wrote: »

so they put their stuff into store and book into the Travelodge for a month

Yeah. I was just pointing out that expecting them to go into a rental when their completion is only a few weeks away, isn't really a viable option.

lush_walrus

tim123456789 wrote: »

There is no right buyer for someone buying a to-be-completed new build needing to link the sale of their current house.

Almost no buyer will be as flexible as they are having to be

The seller will have to compromise in one direction or the other

and if they wont compromise in a direction suitable to you, walk away

This person is a first time buyer living at home, there is no chain below. Assuming that they are buying a typical first time buyer home, there will be others who do have the ability and desire to wait.

If your assumption was true no new builds would ever sell as part of a chain, and yet most do. It may not be ideal but very few transactions involving property are.

lush_walrus

Ara1985 wrote: »

Threats? Wow some people love to exaggerate! Its merely a negotiation and they can take it or leave it. They have said they really want to sell the house to me because I am in a good position. I'm not willing to meet their demands which means me moving into my new place in 6-8 months time so I am giving them my compromise. If they don't like it they can so no and I walk. They can then find another buyer who is seemingly suitable for them. Simple.

All so simple, yet this is your 2nd thread asking for advice.

nicmyles

That would mean completing somewhere around August. Not prepared to wait that long.

There wouldn't be a long time between offer and exchange, the exchange is supposed to take place in the next 28 days, it would be 6 months plus between offer and completion...Maybe I miswrote that somewhere else.

Exchange won't take place at all if you can't agree a completion date. What I meant was that normally in these situations, they wouldn't exchange until their onward purchase was ready to go - so you could be left with a long period between exchange and completion. A vendor messed me around for eight months once between offer accepted and exchange for this reason.

So it's good that they're prepared to exchange, albeit with a very far-off completion date, as then you will have definitely secured the property and you have no worries around them pulling out, trying to renegotiate dates, price, etc.

But if that date doesn't work for you, your only options are:

-tell them you want a completion date of [whatever] or you'll walk. And mean it.
-don't exchange, keep looking around for other options and exchange on whatever's going to be quickest (which may still be this place).