Buyer can't relocate for several months, what options do we have?

amyr

Some of you might be familiar with our predicament from the 'Waiting to exchange' thread - I'm now in a position where I'm hoping someone can offer us some advice. 

In short: We are ready to exchange in our 'chain' of just ourselves and our buyer. However, the buyer has had a change in personal circumstances which mean they now cannot relocate and move in to the house for 3 - 6 months. Their financial situation is very tight, and one option they are exploring is whether they can rent out the house for a six month period, then move in when they can relocate.  

This is ringing alarm bells for me and I have a few questions I can't find the answer to... Would our buyer need to entirely change to a 'buy to let' mortgage? If so, how long could applying for this take - assuming its a case of starting the whole mortgage application process again? Is there anything else we as sellers should be considering in this situation?

We have a back up of being able to delay completition for 2/3 months if it helps our buyer, but really want the security of exchange much sooner. Putting our house back on the market is something we want to avoid as it's taken a very long time to find a buyer and we've already had another sale which has fallen through.

Any advice / thoughts very welcome.

moneysavinghero

As it is you have not really found a buyer. Tell them they either exchange by the end of the month or you will put it back on the market / drop the price (you choose which route you want to go down).

If they don't own their own home already they may find it hard to get a buy-to-let mortgage and would need a 25% deposit anyway which it sounds like they dont have.

Thrugelmir

The buyers problems aren't yours. Remarket the property if they don't exchange in a reasonable time frame. 

amyr

moneysavinghero said:

As it is you have not really found a buyer. Tell them they either exchange by the end of the month or you will put it back on the market / drop the price (you choose which route you want to go down).

If they don't own their own home already they may find it hard to get a buy-to-let mortgage and would need a 25% deposit anyway which it sounds like they dont have.

Thank you. We are desperate to avoid putting the house back on the market at such a late stage of the sale (we've both signed exchange papers, and should have exchanged today). But it's good to know our instinct on their ability to rent the property is likely correct so we'll certainly make sure we're not relying on this to salvage the situation.

princeofpounds

If they can exchange now (or soon) but with delayed completion - that's fine. There may need to be a little compromise in the middle depending on how long their mortgage offer lasts (they can ask for an extension) and when the completion date is expected to be.

If they can't exchange soon, then as moneysavinghero says, they aren't really proceedable buyers after all. Tell them to go away and come back if/when able to exchange. Market and find a new buyer in the meantime, if you are able.

Whether the buyer rents the property out, with lender's consent or not, is irrelevant to you.

amyr

princeofpounds said:

If they can exchange now (or soon) but with delayed completion - that's fine. There may need to be a little compromise in the middle depending on how long their mortgage offer lasts (they can ask for an extension) and when the completion date is expected to be.

If they can't exchange soon, then as moneysavinghero says, they aren't really proceedable buyers after all. Tell them to go away and come back if/when able to exchange. Market and find a new buyer in the meantime, if you are able.

Whether the buyer rents the property out, with lender's consent or not, is irrelevant to you.

Thank you. Helpful to get the perspective on that last point - it's very easy to get caught in the detail of it all. 

We'll suggest the option of a longer completition timeline - this feels by far the simplest, cheapest way to move to exchange. 

Thrugelmir

amyr said:

moneysavinghero said:

As it is you have not really found a buyer. Tell them they either exchange by the end of the month or you will put it back on the market / drop the price (you choose which route you want to go down).

If they don't own their own home already they may find it hard to get a buy-to-let mortgage and would need a 25% deposit anyway which it sounds like they dont have.

 (we've both signed exchange papers,

Means nothing. Draft contract papers are often signed early in the process. 

amyr

Thrugelmir said:

Means nothing. Draft contract papers are often signed early in the process. 

This we sadly know all too well, after our last sale also fell through on our proposed day of exchange. The point is more that we've nothing else outstanding in the process, so very keen not to have to start from scratch with a new buyer. 

Thrugelmir

amyr said:

Thrugelmir said:

Means nothing. Draft contract papers are often signed early in the process. 

This we sadly know all too well, after our last sale also fell through on our proposed day of exchange. The point is more that we've nothing else outstanding in the process, so very keen not to have to start from scratch with a new buyer. 

Which makes all more concerning that your purchaser has in essence now walked , 3 to 6 months is vague and noncommittal. Their mortgage offer may well lapse in that timeframe.