FTB- in chain with someone buying new build...

sambam67

Right here goes! 

So I found my dream home in July, placed offer and accepted few days later. Applied with broker to one lender.. they took almost 40 working days to inform me I had being declined. Applied to second lender and was approved last Wednesday. Paid for searches the following day and these were instructed. Now here comes to key problem...

The vendors text me on Monday night asking if I was able to exchange on 02/11 giving me 7 days. Explained that due to searches only being placed, this is highly unlikely. They informed me that they are moving into new build and their builder has asked for exchanges to be complete by that date other wise they will lose their house. According to my solicitor, one of my searches is back, waiting on Local and Drainage. 

Has anyone got any positives to shed if they had/have being in this situation. I’m so worried that both myself and vendors are going to lose our houses. 

Thanks.

Alter_ego

Developers/builders rarely carry out that threat

sambam67

Oh really. I hope so!! Just seems silly when they have a perfectly good buyer there, who due to Covid, things have delayed.. I’m sure I’ll find out soon enough. Thanks for the response @Alter_ego

Carl2510

Since when does them having to exchange on the new build meaning you have to! There buying a new build which everyone knows is 28 days to exchange and if they can’t trust that your going to come through with the sale then that’s there problem.

sambam67

Carl2510 said:

Since when does them having to exchange on the new build meaning you have to! There buying a new build which everyone knows is 28 days to exchange and if they can’t trust that your going to come through with the sale then that’s there problem.

Ahhh.. well I did wonder this to be honest.. thanks for this. I’m hoping their solicitor will tell them that they are still able to exchange without me.. I should only be 1 week or 2 behind. But if I’m honest, I aren’t happy to exchange without an official completion date. Am I allowed to say this? 

Carl2510

sambam67 said:

Carl2510 said:

Since when does them having to exchange on the new build meaning you have to! There buying a new build which everyone knows is 28 days to exchange and if they can’t trust that your going to come through with the sale then that’s there problem.

Ahhh.. well I did wonder this to be honest.. thanks for this. I’m hoping their solicitor will tell them that they are still able to exchange without me.. I should only be 1 week or 2 behind. But if I’m honest, I aren’t happy to exchange without an official completion date. Am I allowed to say this? 

If there waiting for there sale to complete for the money then they should sell the house first then reserve a property. 

Tiglet2

A developer likes to issue this 28 day exchange deadline to a potential purchaser.  It rarely happens that quickly.  The developer likes to see that the buyer is a serious purchaser and that they are making every attempt to progress the transaction.  Ultimately, the purchaser of the new build could split the chain, but I assume they are relying on the proceeds of their sale to put towards their purchase.  Just keep reiterating that you are happy to work towards their timescale, but that some things are out of your control.

hb2

Builders like their buyers to exchange early but without a specific completion date (as they can't guarantee when the new build will be ready). That is your vendor's problem, it shouldn't become yours. Make very sure that you are not going to be hanging on for months awaiting notice to complete.