What would you do?

AnotherJoe

SameOldRoundabout said:

I’d have a word the the estate agent. Say you have a firm deadline for completion, and while you’re happy to give the vendors until the second week of January to find somewhere they like, you’d like them to be asked if they’d be prepared to break the chain and rent if that does not happen. If they say no, start looking. If they say yes you’re getting somewhere. 

I would start looking right now, AND ask the EA if they will break the chain.

 

lookstraightahead

I'm in a position where my vendors won't dream of going into rented but expect us to wait in rented - if the house they are purchasing falls through I would expect them to go into rented.

as this has indeed happened to you I would start looking for something else. They are trying to save their money at your expense.

Suseka97

SameOldRoundabout said:

I’d have a word the the estate agent. Say you have a firm deadline for completion, and while you’re happy to give the vendors until the second week of January to find somewhere they like, you’d like them to be asked if they’d be prepared to break the chain and rent if that does not happen. If they say no, start looking. If they say yes you’re getting somewhere. 

Except that they could say yes to breaking the chain and yet when it comes to it, they won't.  Or they might try to find somewhere to rent and find that they can't.  So I really wouldn't rely on that.

There's no easy answer to the question - it's really a personal decision.   I say that being in a very similar situation - our vendor is buying a tenanted property and seems confident that they will be able to get vacant possession within the SDLT deadline.  We are preparing for the fact that they may not get it over the line and will have to pay - now we do have the funds, but people who do not need to be thinking of their options should the worst case arise.  

If you have overstretched yourselves (and to be fair, you haven't said that as such) - then maybe you do need to look elsewhere. But unless the next property is chain free, you might still struggle to get the legals done in time (but hopefully not).

badger09

Suseka97 said:

SameOldRoundabout said:

I’d have a word the the estate agent. Say you have a firm deadline for completion, and while you’re happy to give the vendors until the second week of January to find somewhere they like, you’d like them to be asked if they’d be prepared to break the chain and rent if that does not happen. If they say no, start looking. If they say yes you’re getting somewhere. 

Except that they could say yes to breaking the chain and yet when it comes to it, they won't.  Or they might try to find somewhere to rent and find that they can't.  So I really wouldn't rely on that.

Indeed they could say that. They might have no intention of doing it though.

Or, they might intend to, but like us, find it impossible to get a short term (6 month) rental as we did. We said we would break the chain if necessary, but we always meant it, despite it being very difficult for us, in many ways which I won't repeat. We're doing just that.

Suseka97 said:

SameOldRoundabout said:

I’d have a word the the estate agent. Say you have a firm deadline for completion, and while you’re happy to give the vendors until the second week of January to find somewhere they like, you’d like them to be asked if they’d be prepared to break the chain and rent if that does not happen. If they say no, start looking. If they say yes you’re getting somewhere. 

There's no easy answer to the question - it's really a personal decision.   I say that being in a very similar situation - our vendor is buying a tenanted property and seems confident that they will be able to get vacant possession within the SDLT deadline.  We are preparing for the fact that they may not get it over the line and will have to pay - now we do have the funds, but people who do not need to be thinking of their options should the worst case arise.  

I really hope your vendors don't end up in the same position as ours. They too were buying a tenanted property, and were confident tenants would be out before SDLT deadline. Tenants didn't want to leave until mid March, so we offered to pay enough to cover vendors extra SDLT. Great, as they were already prepared to move in with parents.

Then, and only then apparently, did vendor of the onward property realise he could not force tenants to leave, so withdrew it from sale. Cue our vendors doing the same, 3 months into the process. 

You say you are prepared for having to pay the additional SDLT  - but are you prepared for the purchase collapsing? Sorry to put it so bluntly.  

Suseka97 said:

SameOldRoundabout said:

I’d have a word the the estate agent. Say you have a firm deadline for completion, and while you’re happy to give the vendors until the second week of January to find somewhere they like, you’d like them to be asked if they’d be prepared to break the chain and rent if that does not happen. If they say no, start looking. If they say yes you’re getting somewhere. 

 But unless the next property is chain free, you might still struggle to get the legals done in time (but hopefully not).

To be honest, with some LA searches taking 8 weeks and more, I still think that's optimistic, even for a chain free purchase.  

saajan_12

I would certainly start looking.. 
No reliable indication the SDLT holiday will be extended in a way that helps you (sales "in progress" are hard to pin down legally, holiday only materially helps a small group of people ie not FTBs and not buying hugely in excess of £500k, gvt needs money for all the other schemes eg furlough, business support). 

Whoever finds another property first will increase the chance of anyone in the chain completing before 31March.. Starting now, you have 3 months (writing off xmas period) so even if your vendors found somewhere immediately, its 50/50 whether they would be ready in time, depending on the ownard chain etc. 

Crashy_Time

Can`t see it being extended, government needs all the revenue it can get now, they need to consider sellers paying it if they want the market to move IMO.