Extended period between Exchange and Completion

Ara1985

lush_walrus wrote: »

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

You're not obliged to respond

Ara1985

nicmyles wrote: »

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).

They only want to exchange because they have to meet the demands of the developer.

It's not 'good' because it leaves me at risk.

I proposed 1 June and they declined. They said they can't move out before 30 June which doesn't suit me so my search for a property continues.

Ara1985

AnotherJoe wrote: »

Before their new build is complete, yes. They could sell the property to you (they complete with you) and move into rented without completing on their onward new build purchase. They would split the chain in two.

What happens with their new build isn't your concern from then on.



No, as above, you would complete with them, you would own it. The chain has been split.

They can then wait until the cows come home to complete on their new build for all you care.

This isn't the first time here that someone buying a new build expects everyone else in the chain below to wait for them. In your case its straightforward since its just the three parties in the chain. In some cases there might be several below.

Whether this works for them, I dont know, what I do know is that in your situation I wouldnt take the risk. Even if its low odds, its many tens of thousands of pounds you are risking.

You could certainly just wait for them, its the exchanging I wouldn't do.

They have to exchange to get my deposit for the developer (as i understand it)

AnotherJoe

Then it's pretty binary, because I don't see there is any way they can buy a house that's not finished, so either they agree to split the chain at some point as defined by you, or you walk.

And since they haven't agreed to your date, I suggest you walk. Don't rescind your offer as such, just let them know it's on the table if they want it, but you are now looking elsewhere.

Looks to me as if their purchase is going to fall through as well, they haven't got long to come up with a new buyer I'd guess.

Maybe if you stand firm, they will reconsider, accept your offer, and move into rental.

Ara1985

AnotherJoe wrote: »

Then it's pretty binary, because I don't see there is any way they can buy a house that's not finished, so either they agree to split the chain at some point as defined by you, or you walk.

And since they haven't agreed to your date, I suggest you walk. Don't rescind your offer as such, just let them know it's on the table if they want it, but you are now looking elsewhere.

Looks to me as if their purchase is going to fall through as well, they haven't got long to come up with a new buyer I'd guess.

Maybe if you stand firm, they will reconsider, accept your offer, and move into rental.

Thats exactly what I have done
Its a shame because I really do want the flat but I am not willing to put myself at risk.
We'll see what happens, maybe they will reconsider if they don't find a suitable buyer and if not it wasn't meant to be.