Completion date - mortgage offer expiry

ccfc1972

Oh good lord, well that's not good.
So in our situation, the best thing to do would be to try to get our sale over the line within the deadline (before 16th Jan) but under no circumstances should we exchange contracts on our new purchase until our sale has gone through...as it's likely to be a couple of weeks later in reality. Would that be the advice?

GDB2222

If you sell without buying at the same time, you are of course pretty safe. However, do you have somewhere to live in the meantime?  Furniture storage can be pretty expensive. And, of course, you have no guarantee that your purchase will go ahead. 

ccfc1972

We don't really have anywhere to go but I think we have no choice, we have to get the sale across the line no matter what or we will definitely lose ours and I'm sure if that happens, the wife will lose the will to live!
I have been discussing with our buyers the option of us staying in the property after completion until ours goes through, and agreeing to pay them an amount for every week we're in. It's not the ideal situation but it could be our only real option.

GDB2222

What you are proposing is not actually allowed, believe it or not.  There's been some posts about it on this forum recently.


Found it!  
https://forums.moneysavingexpert.com/discussion/comment/77837216

ccfc1972

I know it isn't officially allowed, but I also know that it does happen.

GDB2222

What I would attempt to do is:
1. Keep the OH happy!  That's the main thing.
2. Exchange with your buyer and complete by 15 Jan.
3. Furniture -> storage and you move into Air BnB.
4. Ideally, a few minutes/hours after completion of your sale, exchange contracts on your purchase with a delayed completion date to suit your sellers. The completion date can be flexible, eg between 1 February and 31 March, with your sellers choosing the date they want and giving you ten days notice.  You presumably need completion by 31 March because of stamp duty?

ccfc1972

That all actually sounds like a good idea, thank you.
SUCH a pain that they have such a tight deadline, if it were only a few weeks later we would all be fine, but hey it is what it is.

GDB2222

You could try offering your buyers £500-1000 reduction if they'll agree a later date. You may then find that miraculously they can then get  a mortgage extension. At the moment, what incentive do they have?

ccfc1972

I've spoken to him at length, he's actually happy to be flexible but unfortunately they definitely cannot extend. His wife's income has changed and their advisor has told him that they will definitely not be able to extend, so it is now or never.
Just what we need right before Christmas! 🙈

GDB2222

If his wife's income has changed, he needs to declare that to his lenders, and they may withdraw the mortgage offer. As things are, he may sneak in, but it may be fraud. This may all come out anyway if his solicitor is on the ball, and you're certainly at some risk  of him being unable to complete.

It's a bit puritanical to suggest having nothing to do with him, but it would be prudent to delay exchanging contracts with your vendors until your sale to this chap has completed.