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hannah4928
Posts: 1 Newbie
Sorry this is a bit long winded but please bear with as any advice would be hugely appreciated!
I am a first time buyer and had my offer accepted in November last year for my dream first home!
The vendor of the house I’m purchasing is buying a new build property with completion initially planned for April 2020. Due to COVID this was delayed until July, however the new build development is still not ready and is not looking like it will complete until mid September at the earliest.
This would mean that if all went to plan and with no more delays I would be left with just two weeks to complete before my mortgage offer expired on September 30th.
To be honest I’m not expecting the new build to be ready before my mortgage offer expires, so I’m wondering is there any way to complete my purchase whilst this mortgage offer is still valid? I am a bit worried about having to reapply for a mortgage with the new more stringent checks due to COVID, and would prefer to complete with the terms I currently have!
To be honest I’m not expecting the new build to be ready before my mortgage offer expires, so I’m wondering is there any way to complete my purchase whilst this mortgage offer is still valid? I am a bit worried about having to reapply for a mortgage with the new more stringent checks due to COVID, and would prefer to complete with the terms I currently have!
What are my options in relation to completing my purchase before my vendor completes theirs? Is it possible to do so? I don’t mind The vendor staying in the property until their new build is ready to move into, I just want to complete before my mortgage offer expires! Any advice is so appreciated, thank you!
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Comments
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Apply for an extension to the mortgage offer.
Ask the seller if they will move to a rental / family.Mortgage started 2020, aiming to clear it in 2026.2 -
hannah4928 said:I don’t mind The vendor staying in the property until their new build is ready to move into
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Please don't suggest to the vendor they can stay in the property. Would legally make you their landlord which brings a whole heap of associated issues! (Insurance, mortgage type, tenants' rights, landlord rules, regs and laws, etc...)2023 wins: *must start comping again!*2
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Can you extend your offer further?I have friends who are in a very similar position to you. Their offer was accepted in December, COVID happened and then the family wouldn’t agree to move into a rental while they wait for their new build to push the sale through.
Are they willing to move to rent or stay with family?In the end they agreed to exchange last month with completion set for November and it’s been it written into the contract that completion must happen then (and the family must move out, regardless of whether their new build is ready).0 -
hannah4928 said:What are my options in relation to completing my purchase before my vendor completes theirs? Is it possible to do so? I don’t mind The vendor staying in the property until their new build is ready to move into
Apart from the fact that you would legally be their landlord, with all the rights, responsibilities and record-keeping that running a residential lettings business carries with it - this is a potentially FSA-regulated Sale And Rent Back (SARB) contract.0 -
Get your offer extendedGet the vendors to move out to rental or family, B& B etcStart looking for another property.Breast Cancer Now 2022 100 miles October 100 / 100milesSun, Sea
2024 7/28 lbs to go.0 -
- Have you exchanged contracts with your seller (e.g. with completion on notice)? If so, is there a long-stop date in the contract?
- Has your seller exchanged contracts with the developer (e.g. with completion on notice)?
If you haven't exchanged contracts, what is the plan for when you will exchange contracts? Will it be completion on notice, or a fixed completion date?0 -
Start looking for a new house pronto, you might be pleasantly surprised and find something you like better.0
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Have you spoken to your mortgage broker or lender? Have your financial circumstances changed? I’m in a similar situation, was worried about getting my extension but my lender was pretty chill and gave us another six months on the same terms. Our circumstances were completely the same (we had to prove this with statements and wage slips) and we actually had more money saved in the bank so were in a better situation than when we initially applied.0
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