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Exchanging contracts when abroad

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13

Comments

  • raddon24
    raddon24 Posts: 10 Forumite
    1. What if you can't get an extension?
    - Re-apply for a mortgage or try to agree a completion date within the 6 months.
    2. What if interest rates have gone up or they won't lend you as much? What % is your deposit?
    Currently 10% deposit, the property is valued at £130k we will have extra for a large deposit if required.
    3. You say 4 weeks, but when was it actually granted? Or are you still waiting? Are you sure you're not looking at longer for an extension?
    - We are still waiting.
    4. Is it definitely valid 6 months (I had one valid for 3 which needed extending)? Don't presume your lender will tell you - they obviously haven't taken much notice of your completion date (presuming you've mentioned to them that it's likely to be at least 7 months after them granting you a mortgage and that you will have exchanged and the mortgage offer will have expired before completion).
    - Its definitely 6 months, and the extension is normal. My mortgage broker checked with a 'contact' who works for the lender.

    Thanks!!
  • badger09
    badger09 Posts: 11,573 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    hazyjo wrote: »
    Completion is set at exchange. They don't need to be there for completion. Once exchanged, it's basically done.

    erm, no. once you have exchanged you need to execute the transfer (as a deed). That requires you to sign an original document and send it back. The point i was making is that you can authorize someone else to sign on your behalf (if you are out of the country for example) whereas you cannot easily authorize someone to sign the transfer on your behalf
    lisyloo wrote: »
    I’ve sold recently and I did not sign any paperwork after exchange.
    Why can’t it be signed in advance?


    I'm with hazyjo and lisyloo

    I sold my late sister's house (as executor) in November last year:
    2/11/18 I signed contract @ my solicitor's
    12/11/18 I gave solicitor TR1 signed by myself & co-executor
    13/11/18 contracts exchanged
    16/11/18 sale completed
  • SmashedAvacado
    SmashedAvacado Posts: 1,262 Forumite
    1,000 Posts First Anniversary
    lisyloo wrote: »
    I’ve sold recently and I did not sign any paperwork after exchange.
    Why can’t it be signed in advance?

    Of course it can be signed in advance - the question was about what to do if you have moved already and the documents are not agreed. You can of course use a courier, - the point i was making is that a contract does not need to be signed by the buyer, as they can nominate their lawyer to sign it - wheras a transfer which is signed as a deed, needs to be executed as a deed - and if you have moved before signing it, this is something you cant avoid signing in hard copy - unless you do a poa before you leave.

    PPL are very quick to read what they want to read, as opposed to the words on the page
  • gingercordial
    gingercordial Posts: 1,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    raddon24 wrote: »
    1. What if you can't get an extension?
    - Re-apply for a mortgage or try to agree a completion date within the 6 months.

    But you set the completion date at exchange. You can't go back and try to move it later.

    If you agree the completion date then don't get a mortgage/extension (for whatever reason) you are still legally obliged to complete on that date no matter what. If you don't have the mortgage or back up full funds you will be sued.

    Six months is a really long time. What if one of you becomes ill or disabled or otherwise unable to work? What if your "guaranteed" job on return is with an employer which goes bust? There are no guarantees.
  • raddon24
    raddon24 Posts: 10 Forumite
    I would assume the completion date is subject to getting an extension. I certainly won’t be agreeing to completion for something that isn’t guaranteed..

    Becoming unable to work or being made redundant can happen at anytime whether it’s just after exchanging, completion or 1 year into a mortgage term. I don’t see how that is relevant.
  • Oxon
    Oxon Posts: 199 Forumite
    Fifth Anniversary 100 Posts
    raddon24 wrote: »
    2. What if interest rates have gone up or they won't lend you as much? What % is your deposit?
    Currently 10% deposit, the property is valued at £130k we will have extra for a large deposit if required.

    I don’t know for sure, but aren’t all the finances fixed at exchange as well?
  • financegeek
    financegeek Posts: 140 Forumite
    another one here who thinks you should re think having a completion date after your offer expires. This is what you should be stressed about, not getting papers back for exchange!

    can you not complete a few days before expiry? as that way you don't risk losing your deposit / fees / sellers costs (which you'll have to pay) if you can't obtain another offer in time.
  • Yellow_mango
    Yellow_mango Posts: 450 Forumite
    100 Posts First Anniversary
    I would assume the completion date is subject to getting an extension. I certainly won’t be agreeing to completion for something that isn’t guaranteed..

    Becoming unable to work or being made redundant can happen at anytime whether it’s just after exchanging, completion or 1 year into a mortgage term. I don’t see how that is relevant.

    That’s what exchange means. That you are legally bound to complete for the agreed price on the agreed completion date. Whether or not you have a job, or a mortgage offer, or indeed the house has burned down. And if you can’t, for whatever reason, you are liable to lose as a minimum your 10% deposit, and as a maximum any losses incurred by the seller as a result of your failure to complete.
  • ksb76
    ksb76 Posts: 26 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Not being present in the UK absolutely no problem for either exchange or completion, just need to be able to scan / courier documents to solicitor. Bought last week and live overseas. No issues whatsoever.
  • babyblade41
    babyblade41 Posts: 3,962 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Just sensing the tone of some of the OP's replies and I'm not sure if they are fully aware of all the implications.

    6 months off from work , guaranteed job on return, then only 10 percent deposit on what sounds a relatively small house at 130k.

    The question asked was can you exchange if out of the country and of course you can, agreeing to a 6 month time in-between as a vendor would be a no no.

    My thoughts are that both buyer and vendor aren't particularly au fait with all that buying and selling entails and would not get involved in a deal like this for many reasons

    Even if the OP didn't complete then the deposit isn't great to lose and it appears no other one involved in the chain and as they will be out of the country for a reasonable amount of time then possibly no hope of gaining anything.

    I take it you will be paid during this time ? I'm not sure you would get funding by opting out for some time with such a small deposit.
    I'm pretty sure insurance would be a problem as the vendor might not be in the country either as if they are happy waiting 6 months to complete it sounds like they are not the normal type of vendor either
    This all sounds unconventional to me and I would not be venturing into this kind of deal especially with someone not in the country
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