What are the chances of exchanging tomorrow?

Montyboy59

Good afternoon all,

It has been an interesting moving rollercoaster for us. Sold our house 23rd October and we are buying a vacant house and selling our house to FTBs. They have been a bit clueless throughout and not the easiest to get hold-of.

Everything is in place and we were supposed to exchange tomorrow and move in February (buyers not available to complete in January - a long story). We found out Friday afternoon that our buyers were not in a position to exchange as they didn’t have their funds in place.

After a big old faff, estate agent found out yesterday that our buyers thought they needed the full 15% deposit ready now (their mortgage requires 15% as they have only lived in the U.K. a year) but they do actually have 10% deposit ready to go. Obviously, the solicitors are closed over the weekend and so as far as they were aware on Friday afternoon, exchange for Monday was off.

What are the chances of exchanging tomorrow still? Has the chance now gone out the window and we will have to wait until January? The solicitors had their files ready to go and that date had been secured for a while. We have our money in place ready to go whenever we are asked.

It will be quite frustrating if we have to wait until January but that may be the case. Buyers are getting their extra 5% from wages and family in January.

hazyjo

Are the solicitors and estate agents open? Not sure when they'll break for Christmas.

Montyboy59

They all close 5.30 Wednesday 

parcival

I would think that Exchange tomorrow is impossible.  I don't think a solicitor will be prepared to Exchange unless all funds are in place.....The promise of a further 5% has no certainty.

anselld

Their Solicitor will advise them strongly not to exchange if there is the slightest of doubts over the source of the remaining 5%.

Also, there is no particular incentive to exchange tomorrow if completion is not until Feb.  Less risk for all parties to wait until nearer completion.

Montyboy59

Ah ok, thank you for your replies. It’s frustrating for us as we have done everything right and done everything asked of us ASAP. Feel a bit stuck in the middle 

AdrianC

Are you getting confused between the two meanings of "deposit"?

They're supplying 15% equity, and borrowing 85%, and the full payment is due on completion.
10% is usually paid at exchange as a security deposit to prevent walk-away - regardless of what %age is being borrowed...

Montyboy59

Maybe. We’ve only ever bought a house and have tried to research everything we can but we don’t know everything inside-out.

They need 15% equity for their mortgage, yes. They thought they needed to hand this all over tomorrow but now know they only need 10% “security deposit” which they have. Think it’s all been fluffed for tomorrow.

Thrugelmir

Why the rush to exchange?  That's a large gap to completion. 

Montyboy59

@Thrugelmir we’re getting a lot of pressure from the estate agent and vendor we are buying off. She owns the house outright (her second home) so I guess she’s got £290k riding on this and wants her money...

Our estate agent also wants the security of the sale going through (as do we). 

We’re quite anxious as our last buyer pulled out but I do see how it looks rushed as there is such a long gap between exchange and completion.

Our buyers are going to India for the majority of January so that’s why the gap is there (we’re in tier 4 but I guess they’re allowed as Indian citizens?)

Slithery

Montyboy59 said:

What are the chances of exchanging tomorrow still?

Exactly 50%.

It either will happen or it won't.