Chain about to collapse, not sure what to do

Schro

So our chain was completed in March and then Covid happened. Around July it started moving again, though it was then discovered our buyer (FTB bottom of chain) didn't have a mortgage offer in the first place (we accepted his offer November 2019), as his mortgage broker advised him not to apply until the chain was complete but then was unable to proceed during Covid (though we were led to believe he had a mortgage until July). 
So from that point our chain had issues, and we had to apply for an offer extension that expires at the end of September. Though he managed to get the mortgage offer we then had issues from the house we are trying to buy (Chain No.3). Initially it was delayed a week as the seller was concerned he might lose his job, though after that was resolved his solicitor was then insisting on same day exchange and complete and a Covid clause (though we learnt the sellers did not themselves want a Covid clause and this was something their solicitor was pushing for). This was turned down by the new build at the top of the chain (a few houses up, No.6 i believe) as they stated it was impossible for them to do so. Eventually everyone in the chain agreed to a completion date on the Thurs 27th Aug, though as the days rolled ever closer there was no exchange in site. It got to Tues 25th Aug when our estate agents and solicitor told us it would not go ahead and a new date of the 7th Sept for completion was decided.

However while the solicitors were arguing the seller of the house (Chain No.3) mortgage offer was also close to expiry. So on Tuesday they decided that they would not be comfortable to do the 7th Sept until their mortgage offer was extended, once again insisting on exchange and complete same day (which was again denied by the rest of the chain). Yesterday we were hoping to get a call that their offer was extended, but instead received a call that now the seller believes their is a 10% chance he might lose his job again and as such will not be happy to exchange till the 23rd Sept (which he says he will know for certain). However this would put us under 10 days from our extended offer expiring, and our solicitors have advised that the last possible date we can complete is the 15th Sept (which allows for the 10 days).
We are taking our solicitors advise, though there is pressure from people in the chain for us to run down the clock to the 23rd, which will put us at financial risk. Our solicitors have told the chain that if the exchange does not happen next week with a completion for the 15th that we will pull out. They have asked the seller of House No.3 to talk to their employer to see if they can find out their job security sooner. But with the issues described previously, I am not sure that this will happen.

We are considering applying for a new mortgage offer, as we have already been told our previous offer can not be extended further. However we have been advised that we will need a 15-20% deposit now, and as such the dream of us moving from our one bed house seems to be dead. 

iwb100

Exchange and complete on the same day is very normal now...is it just the new build objecting?
Im not sure why you need 10 days either...exchange then complete a few days later....

There isn’t much you can do other than make clear when you need to exchange by and you may as well ensure the chain knows that if you can’t complete by then you won’t be able to proceed...might put a few fires under some and as that is almost certainly the case....

Other thing to do is find out what your existing mortgage company would or wouldn’t offer you beyond the date you have. Often that will offer you a mortgage just at a worse rate....obviously that’s not great but gives you an option....or they might refuse on current terms. We just had a very similar sort of experience where our chain was all teed up ore Covid then after lockdown people started re doing mortgages and it dragged on. 

Schro

The 10 days was the solicitors advise and we have decided to follow it, they said there should be 10 days between completion and the expiration of the offer. This is in case the completion date gets moved for any reason, which if under 10 days has the possibility of going past the expiration of our mortgage offer and causing us to potentially lose our deposit.
In regards to the mortgage offer, our mortgage broker has told us there is no way our date can be moved and that any new deal will require a 15-20% mortgage. Though we are looking at the possibility of a new deal if we can find one needing 10% (though might mean going to another broker).
In regards to same day complete and exchange, it is primarily the new build that disagrees. But it is now because we also don't have confidence that it can be done either. As we have already had two potential completion dates go out of the window. Also we have been finding it hard to book a moving firm, as some of the local ones won't take a booking unless we have had an exchange of contract.

iwb100

Schro said:

The 10 days was the solicitors advise and we have decided to follow it, they said there should be 10 days between completion and the expiration of the offer. This is in case the completion date gets moved for any reason, which if under 10 days has the possibility of going past the expiration of our mortgage offer and causing us to potentially lose our deposit.
In regards to the mortgage offer, our mortgage broker has told us there is no way our date can be moved and that any new deal will require a 15-20% mortgage. Though we are looking at the possibility of a new deal if we can find one needing 10% (though might mean going to another broker).
In regards to same day complete and exchange, it is primarily the new build that disagrees. But it is now because we also don't have confidence that it can be done either. As we have already had two potential completion dates go out of the window. Also we have been finding it hard to book a moving firm, as some of the local ones won't take a booking unless we have had an exchange of contract.

Ok few practical things here...is your solicitor saying 10 days before expiry because of COVID risks? Because that doesn’t make sense. And if you exchange the completion date is down in contract and can’t be moved...so exchange today complete in 4 days...the whole chain needs to agree to a completion date and frankly I think your biggest issue is people not wanting to exchange and complete on the same day as is very normal now.

I can’t believe removals firms aren’t taking bookings, you will have to pay in advance and lose your money should it go wrong which is the biggest issue with exchanging and completing on a day BUT it’s a much more tolerable risk than exchanging and not having protection in case of a COVID issue somewhere in the chain.

I would be onto your solicitor first thing tomorrow and ask them how they are managing COVID risk if you are exchanging pre completion. To do that you need COVID riders and waivers right up the chain to stop anyone being liable should COVID mean that completion can’t happen. It takes a lot of work for solicitors which is why most want to exchange and complete in a day. I’d check they are doing that otherwise it could be a mess. I’d also ask them to get a date for exchange and completion set that the whole chain has agreed to. And you can say is a suitable one isn’t sorted you will have to pull out. That’s not an empty threat at this stage. Though I’d say there are plenty of 10% mortgages out there, so isn’t really a problem I wouldn’t have thought unless you are right against the affordability criteria...

Schro

They were advising 10 days in case for any reason the completion date became moved due an unforeseeable reason which then pushed it past our mortgage offer expiry. The idea of this frankly terrifies me as I have been told my deposit could be tied up in litigation for years even if the initial moving of the completion date wasn't my fault.
Also we still have no assurances that even if we get to the 23rd/24th we will know if the seller if keeping his job, and we just found out an hour ago that no one can find out if he even managed to extend his own existing offer in the end. These sellers have been quite flaky over the last few months, that I am not exactly trusting of them atm. Also their own mortgage offer was expiring we believe a week after our second proposed (and accepted by the whole chain till a few days before) completion date of the 7th Sept, and they themselves were not prepared to exchange and complete without getting their own offer extended even though it would have been in the timeframe.
As for moving companies, a couple of the big local ones have flat out told us we needed exchange of contracts and a set completion date. If we did book them without this assurance we would have to pay the full cost if the move was cancelled, and we don't have a spare £1000 to waste for a cancelled move.
As for our mortgage offer, it's because our existing bank will not offer any other new deal for anything less than 15% as our current offer is being done as a port and top up. If we want to go with a new bank we need to pay a sizeable early exit charge. Though he did tell us there are not many 10% deals.