Buyers offer expires prior to me getting out..

911bill

Hi All,

I am in a bit of a situation where I need help.
I have been have been having a nightmare for 2 years with moving, I'll keep it brief. 
Accepted a very healthy offer on my property back in June/July 2020 upon viewings being allowed again. We had accepted an offer prior COVID but the buyer had to pull out.
Very nice buyer, we have kept in touch along the way, my wife and I have been struggling to find a new property to move to, when we have found one, we have been gazumped (outbid after being told our offer has been accepted) on 2 different properties, been involved in 3 bidding wars and basically just having a really difficult timing securing somewhere.
On Christmas Eve, we finally found somewhere and an offer was accepted and property has been removed from the market and all is going our way with it, we are over the moon and just can't wait for our little 18 month old boy to have a garden (We are currently in a flat). 
Anyway, today I receive a call from my buyer, I was aware that his mortgage offer was due to expire at the end of this month, after letting him know we finally found somewhere, he was delighted and did let me know, he needs to see what will happen in relation to his offers expiry date.
When speaking with him, he said that he is allowed to have a 5 days extension but beyond this, the offer will be invalid and he will have to start his application process all over again, that in itself is not a problem, the problem is the product he has been offered. He has been offered a product which allows him to buy my property with a 10% deposit and for a 1.xx% interest rate. Apparently, if he does not get this, he cannot get another offer where he can buy with 10% at a rate below 3%. 
So, he wanted to run something by me, he may have to back out (this would destroy my wife and I) or we exchange and complete and between us, I effectively pay him his mortgage money, cover my bills, for an agreed period (1-2 months) until I complete. He is happy to draw up an agreement, accepts I want to stay until we complete as I have a baby boy and has been up front with us through the whole process, as I have been with him, so I trust we could work together to make this a smooth process between us. 

Is this achievable? 
The worst scenario is that our purchase falls through and we then have to get out and no where to go (but rent or family). 

I would appreciate any advice on this situation, we really want to keep this buyer now he has held on for so long and made a great offer which we do not think we would get again and obviously get the house we have made an offer on. 

Many thanks,
B 

davidmcn

It's messy, though the risks are mostly for the buyer (and his presumably unsuspecting lender) than you. And if he gets decent advice, he may well change his mind. 

Slithery

You might want to read this thread from earlier today to understand why this isn't going to happen...

Selling to a buy-to-let purchaser and becoming a tenant and renting the house after completion

Doozergirl

I think you need to need to consider moving out and breaking your own chain.   It's stressful, but this idea isn't going to get past the buyers solicitor.    If it doesn't make it past them, it isn't a good idea.  

In the same situation I would break the chain as your house is worth more to most people before the stamp duty holiday at the end of March and the chances of finding a new buyer to complete before then are slim.  

In insisting in doing it, you also don't know when or if your own new sale will complete, so you've got the potential weight of an unwilling landlord harassing you, which will be fun 😬

SMR710

Break the chain
 Move out and rent for short term 

911bill

Thank you all.
I appreciate the risk is mainly with the buyer, I will have the money from the property and still live in it. I just don't want to take the risk of issues. 

Is it not possible to exchange by the end of the month but complete in March? Does the mortgage lender lend the money on the completion date? I do not really know how it all works.

Thrugelmir

911bill said:

 He has been offered a product which allows him to buy my property with a 10% deposit and for a 1.xx% interest rate. Apparently, if he does not get this, he cannot get another offer where he can buy with 10% at a rate below 3%. 

That's very low for a 90% mortgage. You may well find that you are being manipulated. Better to have contact through the EA rather than direct. Then conversations are less emotional and aren't pressurised. 

911bill

Yes, I wish I hadn't swapped numbers with the buyer but I did so as I didn't trust the EA

davidmcn

911bill said:

Is it not possible to exchange by the end of the month but complete in March?

No, the expiry date is for completion - the date of exchange is irrelevant to the lender.