my legal rights when buying from a third party.

Lyncj99

Me & my partner are both first time buyers. The vendor has already part-exchanged this property for a new build with Linden homes, this means they can remain in the property until theirs is completed. So theoretically, were now buying it back from Linden homes - the new homes group insisted on a 28 day exchange, so all paperwork is already completed and signed, Our solicitor has also held our 10% deposit since February 2020 because the new homes group still haven't given us a completion date. Before the pandemic we were told potentially March 2020, then April 2020 - then of course the pandemic put things on hold, understandable. Since the lock down has began to ease they have now contacted my solicitor with an earliest estimated date of October 2020. The only explanation given is that the new build property still isn't near completion. Bearing in mind, our mortgage offer expires at the beginning of August (applying for extension of mortgage offer advised). The current occupants of the property have already complained to Linden homes on more than one occasion for their lack of communication and delays that continue to be pushed back. I've been told by my mortgage advisor we can either stick with it, complain and wait or pull out, get your deposit back but risk not being accepted for another mortgage. HELP! 

AdrianC

There is no "theoretically". Your vendor is the developer. They are taking ownership from the previous owner as part of a deal over buying a new-build.

Your solicitor is merely holding your equity on your behalf. If you pull out, that's still your money.

And, yes, new-builds are badly delayed at the moment... All work stopped two months ago, after a few months of atrocious weather delaying things. The materials supply chain is going to be all over the place when it does get back. Not all trades will go back to work at the same time - some people will be furloughed, some will be shielding, some will be looking after their kids. Some may be sick or dead. Do you know what stage the new-build you're chained to is at?

Is there any reason from your end why you can't renew your mortgage offer?

davidmcn

Lyncj99 said:

I've been told by my mortgage advisor we can either stick with it, complain and wait or pull out, get your deposit back but risk not being accepted for another mortgage.

That seems a reasonable summary of your options. Unless the (not) vendors can move out to somewhere temporarily while they're waiting for the new house to be built. What else were you expecting?

Lyncj99

I was merely explaining the situation we're in. Exchanging contracts within 28 days  meant all documentation required was sent, read, completed and signed via email correspondence between 3 separate parties - in 28 days (before pandemic outbreak) So excuse my incompetent knowledge regarding housing - like I said, this is my first time and it's rather complicated. I am asking for advice on anything that would help bring the completion date forward - I have been told that everyone is ready and waiting for Linden homes, the occupants who have part exchanged have already complained about several delays they've already encountered while dealing with them - has been being delayed since September 2019 and is currently proposing a further delay of 5+ months - even my mortgage advisor cannot understand why there would be such a great hold up. So the next piece of advice I'm asking for is.. How long (legally) can they continue to delay our sale?
TIA

davidmcn

Without having seen your contract, my best guess is that they can delay it as long as they like. They'll be under no obligation to build the new house at all, never mind within any particular timescale. If you get fed up waiting, your remedy is to pull out and buy something else. 

eddddy

Lyncj99 said:

How long (legally) can they continue to delay our sale?

You need to read your contract to find out - but often there is a 'long-stop' date.

If, for example, the 'long-stop' date is 1st September, and the seller is ready to complete by 1st September you are legally bound to buy the house.

If 1st September arrives and the seller isn't ready to complete, you have the option to pull-out and get your deposit back - or you can continue to wait if you want.

It's very unlikely that the contract specifies any date by which they 'must' sell the house to you.

If you threaten to walk away after the 'long-stop' date, you might be able to scare the current owners of the house into selling you the house sooner, and they go into temporary / rented accommodation until their new house is ready.

bucksbloke

I would ask for information of what stage of the build they are at, to understand how long they have left to go. 
I would expect that the developer could either fund rented accommodation or pay for a new mortgage application if this cannot be extended. 

Thrugelmir

So you haven't exchanged contracts yet with Linden Homes. In which case you'll need to ascertain a completion date for the build. Perhaps give them a further week or two to allow them to get up and running fully. Then put the pressure on. 
Might be that you renegotiate the price. 

davidmcn

Thrugelmir said:

So you haven't exchanged contracts yet with Linden Homes.

It read to me as they have exchanged, but with completion on notice (linked to whenever the new house is built). Perhaps the OP can clarify. If they are past a longstop date and the OP has the option of pulling out, they can of course threaten that and try renegotiating anyway.

Thrugelmir

davidmcn said:

Thrugelmir said:

So you haven't exchanged contracts yet with Linden Homes.

It read to me as they have exchanged, but with completion on notice (linked to whenever the new house is built). Perhaps the OP can clarify. If they are past a longstop date and the OP has the option of pulling out, they can of course threaten that and try renegotiating anyway.

Solicitor appears to be still holding the deposit pending notification of a completion date. Without which a longstop cannot be notated within the contract.