New Build Chain

LouLouc

In April 2019 we agreed the purchase of a second hand home. The vendors were buying a new build which was due to be completed in October 2019.
We are in rented as we have already sold our property and been waiting for a house we like so we said waiting until October was fine with us.
We are now ready to exchange contracts but have been asked to exchange contracts with completion on notice and a longstop date of May 2020! We have also been told the new build has been delayed until end November.
My mortgage offer expires in December 2019 so I have said I will need a longstop in line with the mortgage offer to exchange contracts. Apparently I am being difficult and our vendor has now told us if we don’t exchange with the May 2020 longstop they will remarket the property.
I have tried suggested they vacate if house not ready in December and even offered to help cover some of the costs of this but they have point blank refused.
I have also suggested we wait until a more clear time frame is known- this is also not acceptable- apparently we must exchange now.
I’m all out of ideas on how to make this work.
I would welcome any thoughts or advice.

scholesfan88

All I will add is that you have no chain and have the upper hand here, dont be pushed around by the vendor.

pinkteapot

How quickly did their house sell? Did you buy it near asking price as soon as it came on the market?

If they think they can easily get another buyer at the same price, they won't clear out into rented because they don't need to.

It's a negotiation and they're playing hardball. It'll come down to who's more scared - you of losing this house or them of losing you.

You could ask your lender if an extension on the offer would be possible if the need arises. If the offer expires and can't be extended you'd need to re-apply. While this would cost you in fees, if your financial/work circumstances haven't changed you should get accepted again. The issue would be you're taking a risk in exchanging with the possibility of having to re-apply, as you'll be legally bound to complete. Only you can decide if you're happy with that risk.

The long-stop dates on new-builds are normally wildly excessive. The builder comes up with them knowing the house will be complete long before that - they don't want buyers being able to pull out. People only tend to reach the long-stop when there have been extreme (and rare) problems with construction.

AnotherJoe

Start looking at more houses some with the same EA just so they know you are serious. In most areas house sales seem to have really flatted out so I think your vendors are mad when they have a no chain buyer and are willing to jeopardise this but maybe this is an area where sales are still strong?
There's no way I'd exchange when the mortgage may expire, that could Be financially crippling for you.

diggingdude

Personally I think you hold all the cards here (so long as there are other properties for sale which you would consider). Your sellers will know that if you were to pull out they need a new buyer and risk losing the new house so they need to meet you in the middle

LouLouc

Thanks for all the comments.
I’m not happy with the risk of exchanging and ending up with an expired mortgage offer.
The house didn’t sell easily, they only had 2 viewers including us in 6 weeks.
We have arranged to view another property through the ea as suggested. Fingers crossed all works out.

ethank

Tell them that if your mortgage expires due to the late build, then you expect them to indemnify you against costs.

Doozergirl

This is the developer making the demands. Anyone in a chain with a new build has to march to their tune.

The developer will not compromise and you're not being unreasonable by needing your mortgage offer secure through the whole exchange/complete period.

Your vendor will lose their new house if they cannot exchange when the developer demands. No other buyer will be ready in time.

They need to find the solution, not you.

LouLouc

Ethank - excellent idea! I hadn't thought of that!