New build exchanging period exceeded

Foreverhome2020

Hello all, looking for some advice with my current chain.
I am in the middle of a chain in the buying process - my buyer is a first time buyer with no chain and i am buying a new build. We started the sales process before lockdown and never got round to fufilling the required "28 day exchange" period as the builders stopped building and i refused. Now the builders are back at work and house work is progressing, our completion date keeps moving further and further away and our buyer does not want to exchange without a committed date. The new builders can't commit to a completion date and now i am stuck in limbo without a clue what to do. We know we are risking loosing our new build without exchanging - but how much can they enforce that upon us given the current circumstances of the pandemic as our buyer is scared to commit. A Covid - 19 contractual rider has been floated but our buyer still is not interested in that. Our house is a couple of months away (hopefully) from completing and we are also at risk of our mortgage offer expiring - but we are still being pressured to exchange by the new build. Surely there is no point in them re-marketing the house now with us being this close to exchange?

Any thoughts on what to do - could we hold out to exchange longer given the circumstances to reduce the risk or do we have to push our buyer to exchange? 

ecraig

Arrange a date with your buyer to exchange and complete. 
You move out and temporarily rent or live with family. Put your belongings into storage as you have said that your “house is only a couple of months away (hopefully)”

You’re risking losing the buyer, and you’re peeving the builder and risking the new build. Sounds like you need to be a bit more flexible. 

Foreverhome2020

We did consider this, but if we move out and our mortgage offer expires and can't be renewed for some reason - then we then have sold our house without having one to go back to and may not be able to buy the new one. A bit risky no?

ecraig

Foreverhome2020 said:

We did consider this, but if we move out and our mortgage offer expires and can't be renewed for some reason - then we then have sold our house without having one to go back to and may not be able to buy the new one. A bit risky no?

Yes - risky. 
However you must take risks to reap the rewards. And with a decent broker and solicitor you minimise your risk exposure.

RelievedSheff

Can your mortgage offer not be extended? Most lenders offer and extension on mortgage offers for new builds as they often have delays.

The developers are quite within their rights to remarket the property if you refuse to exchange contracts. 

As others have said you need to be a bit more flexible with both your sale and purchase in these circumstances.

comeandgo

Sell and move, new builds very rarely meet their first completion date.  You risk loosing your sale.

bucksbloke

Take a rental or move in with family. You could ask your builder to sign a rider promising return of deposit if you cannot extend your mortgage offer. Most mortgage companies will extend by at least three months. 

davidmcn

Foreverhome2020 said:

We did consider this, but if we move out and our mortgage offer expires and can't be renewed for some reason - then we then have sold our house without having one to go back to and may not be able to buy the new one. A bit risky no?

Yes, but if you're buying a newbuild off-plan it's the sort of risk you can't really avoid. If you want to avoid it (and all the other potential problems of buying a newbuild) then buy something which is already built.

OldMusicGuy

Are there still similar houses for sale on the development? If there are, the builder does not have to remarket the house. If they get potential buyers asking about your type of house, they may well be happy to sell to them rather than you. So you are running a risk of losing it.

If you exchange you will get an estimated completion date and a long stop date. So you will have dates to work with. Your choice is either to exchange or to keep hanging on and risk losing it.

FWIW we are buying a newbuild. Original completion date was by June 30th, when we exchanged this was pushed back to 30th September with a long stop date of 31st October. Also, houses on our development are selling - three have been reserved since lockdown lifted, only one of our type left now. 

Foreverhome2020

OldMusicGuy said:

Are there still similar houses for sale on the development? If there are, the builder does not have to remarket the house. If they get potential buyers asking about your type of house, they may well be happy to sell to them rather than you. So you are running a risk of losing it.

If you exchange you will get an estimated completion date and a long stop date. So you will have dates to work with. Your choice is either to exchange or to keep hanging on and risk losing it.

FWIW we are buying a newbuild. Original completion date was by June 30th, when we exchanged this was pushed back to 30th September with a long stop date of 31st October. Also, houses on our development are selling - three have been reserved since lockdown lifted, only one of our type left now. 

Yes, there are still houses left to sell of the same house type. No conversation has been had about remarketing and all of our paperwork is in order to exchange at any point in time - the only issue is our buyer.

Thank you all for your advice but i have two very small children and i wouldn't wish to sell my current house without having the new one to move to - i would rather loose the sale. Not so much about me being inflexible but the reality of life and peoples personal circumstances which clearly are not taken into account here.