completion date, covid rider and insurance / internet etc.

JeffMason

Hi All,
I'm close to agreeing a completion date now. But someone in the chain has suggested a COVID 19 Rider, allowing anyone in the chain to change the date if something Covid gets in the way. I'm fine with this as long as we don't push past the stamp duty holiday, but wondered how it would work with services I plan on setting up. 

I need buildings insurance but was planning on getting it along with contents  - but if completion gets delayed, can I change the start date at the last minute? The same applies to the internet - I need it up and running in the new place before I can move in, so wanted to have it start two days after completion, but if the dates change can I pause that? And will it mess with the current owners internet contract, which they will need up and running until they move too...

It seems sensible to have the COVID 19 Rider in place just in case, right?
Any thoughts / advice on this? 

davidmcn

If your buildings insurance is starting on the date of exchange then I'm not sure why that would need amendment? The rider is only relevant to things which happen between exchange and completion.

As for internet, we don't know who your intended provider is or what they're saying about installation dates.

Seashell517

No idea about the Covid stuff, but an FYI: buildings insurance is needed from exchange, not completion. 

JeffMason

Buildings insurance at exchange then - but what if completion is delayed for a month or more. I shouldn't be paying buildings insurance on a house that isn't mine, should I?

If the delay goes much longer than a month, I'm allowed to pull out of purchase and will want to if stamp duty kicks back in. 

JeffMason

I don't have an internet provider yet. I was going to look into it today. I was hoping for general rules around this sort of thing..or will they be completely different depending on who I go with?

davidmcn

JeffMason said:

Buildings insurance at exchange then - but what if completion is delayed for a month or more. I shouldn't be paying buildings insurance on a house that isn't mine, should I?

If the delay goes much longer than a month, I'm allowed to pull out of purchase and will want to if stamp duty kicks back in. 

You want insurance for as long as you're under contract. If you pull out, you can then cancel the policy (and will generally get a pro rata refund less an admin fee).

Scotbot

JeffMason said:

I don't have an internet provider yet. I was going to look into it today. I was hoping for general rules around this sort of thing..or will they be completely different depending on who I go with?

The issue is likely to be when your buyers contract ends,  whichever provider you go with thery can't start the contract until the present owners contract finishes. This is a problem if your vendor fies not end their contracff in time. If you are tech savvy this isn't an issue as if their internet is still running you just configure your modem to link to it. 

Grt quotes asap and you will find out if this is an issue

JeffMason

Scotbot said:

JeffMason said:

I don't have an internet provider yet. I was going to look into it today. I was hoping for general rules around this sort of thing..or will they be completely different depending on who I go with?

The issue is likely to be when your buyers contract ends,  whichever provider you go with thery can't start the contract until the present owners contract finishes. This is a problem if your vendor fies not end their contracff in time. If you are tech savvy this isn't an issue as if their internet is still running you just configure your modem to link to it. 

Grt quotes asap and you will find out if this is an issue

So mine just wont automatically cancel theirs? Like it does when I switch from one provider to another in the same house?

Should I check with them when they are ending their contract? 

How will getting quotes answer this for me? Will they know when a current contract ends?

I need the internet for work. My work is all zoom calls at the moment so I cannot move into the new place until I know the broadband is up and running and works well. 

grumiofoundation

JeffMason said:

Buildings insurance at exchange then - but what if completion is delayed for a month or more. I shouldn't be paying buildings insurance on a house that isn't mine, should I?

If the delay goes much longer than a month, I'm allowed to pull out of purchase and will want to if stamp duty kicks back in. 

From a couple of years ago 
https://www.theguardian.com/money/2018/jul/28/buying-home-insurance-exchange-completion

Thrugelmir

JeffMason said:

Buildings insurance at exchange then - but what if completion is delayed for a month or more. I shouldn't be paying buildings insurance on a house that isn't mine, should I?

If the delay goes much longer than a month, I'm allowed to pull out of purchase and will want to if stamp duty kicks back in. 

If the property catches fire. Then you are still contracted to purchase it. Hence why mortgage lenders require cover in place. 

davidmcn

Thrugelmir said:

JeffMason said:

Buildings insurance at exchange then - but what if completion is delayed for a month or more. I shouldn't be paying buildings insurance on a house that isn't mine, should I?

If the delay goes much longer than a month, I'm allowed to pull out of purchase and will want to if stamp duty kicks back in. 

If the property catches fire. Then you are still contracted to purchase it. Hence why mortgage lenders require cover in place. 

Well, it's why purchasers want cover in place - I wouldn't be convinced that your lender would want (or be obliged) to lend if the place has burnt down!