Giving Notice Before Exchange

AdrianC

The thread immediately below yours is currently this one...

https://forums.moneysavingexpert.com/discussion/6278060/sale-fallen-through-for-second-time-close-to-exchange

[Deleted User]

cdp2879 said:

Looking for a few more opinions.  We're at the tail end of a chain-free purchase.  We're FTB, buying what's currently an empty BTL.  The paperwork has been signed, the mortgage docs signed, searches are all back and most of the enquires answered.  There are just 4 or 5 remaining enquires, a few of which I'm prepared to waive if necessary.  It feels like we're very close now.

We have to give 2 months notice for our current rental, and it has to be on the 1st of the month.  I'm very tempted to give notice next week on the 1st of July, meaning we have the rental until the end of August.  Otherwise, even if we exchanged and completed the week after next, I'd have to wait nearly an entire month before I could give notice on 1 August, having this property until end of September.  We know we'll have two properties for a certain amount of time (which is fine by us, as moving with two small kids means we can do it slowly), but would like to limit that time as much as possible.  One less month saves us nearly £2,000.

Would you lean into the risk that the last few queries would be sorted in two months?

Do you have somewhere else to go when your tenancy ends if you can’t move into the property you are buying? 

saajan_12

cdp2879 said:

user1977 said:

cdp2879 said:

user1977 said:

cdp2879 said:

There are just 4 or 5 remaining enquires, a few of which I'm prepared to waive if necessary.

Would your lender be prepared to waive them? What are the ones you wouldn't be prepared to waive?

Also, the question isn’t whether I could/should waive enquiries. The preference would be that everything is sorted. 

The question is whether I should consider giving notice given the stage we’re at in the process. 

Yes, but the question is also whether these are enquiries which you can waive. If your solicitor (wearing their "lender's solicitor" hat) needs satisfactory answers in order to use the mortgage funds, then you're not buying until that happens.

Yes, obviously, thank you. But again, whether or not to waive them has nothing to do with whether or not I give notice. 

Well of course it does. 

The risk from giving notice early depends on
a) probability that completion date not agreed within 2 months 
b) concequences if completion date isn't within 2 months

The probability (a) depends on 
- potential issues if you waive searches that turn out to be important, and therefore you might choose you can't waive, thus more likely to go over 2 months
- whether lender lets you waive searches - if not then more likely to go over 2 months
- whether other parties in the chain have issues / delays you don't know about

The concequences (b) might be some / all of these:
- cost and hassle of an extra move
- inconvenience of living elsewhere, possibly indefinitely if it all falls through
- legal costs / double rent with tenancy if you overstay your notice and LL doesn't agree to rescind notice. 
- costs if you waive searches to speed up, which turn out to be important

So even if concequences are limited, is the risk high? Or even if the risk is low, is the worst case simply unaffordable? 

cdp2879

saajan_12 said:

cdp2879 said:

user1977 said:

cdp2879 said:

user1977 said:

cdp2879 said:

There are just 4 or 5 remaining enquires, a few of which I'm prepared to waive if necessary.

Would your lender be prepared to waive them? What are the ones you wouldn't be prepared to waive?

Also, the question isn’t whether I could/should waive enquiries. The preference would be that everything is sorted. 

The question is whether I should consider giving notice given the stage we’re at in the process. 

Yes, but the question is also whether these are enquiries which you can waive. If your solicitor (wearing their "lender's solicitor" hat) needs satisfactory answers in order to use the mortgage funds, then you're not buying until that happens.

Yes, obviously, thank you. But again, whether or not to waive them has nothing to do with whether or not I give notice. 

Well of course it does. 

The risk from giving notice early depends on
a) probability that completion date not agreed within 2 months 
b) concequences if completion date isn't within 2 months

The probability (a) depends on 
- potential issues if you waive searches that turn out to be important, and therefore you might choose you can't waive, thus more likely to go over 2 months
- whether lender lets you waive searches - if not then more likely to go over 2 months
- whether other parties in the chain have issues / delays you don't know about

The concequences (b) might be some / all of these:
- cost and hassle of an extra move
- inconvenience of living elsewhere, possibly indefinitely if it all falls through
- legal costs / double rent with tenancy if you overstay your notice and LL doesn't agree to rescind notice. 
- costs if you waive searches to speed up, which turn out to be important

So even if concequences are limited, is the risk high? Or even if the risk is low, is the worst case simply unaffordable? 

Thank you, but they’re not searches (those are complete and fine) and there’s no chain. 

Gavin83

GrumpyDil said:

Can I ask why two months notice?

Are you exercising a break clause as standard tenant notice, assuming a monthly tenancy and outside of a fixed term is one month.

This isn’t always the case. My tenancy agreement specifically states that after the fixed term ends we go onto a rolling contract with 2 months notice.

GrumpyDil

Hence my reference to standard. If your contract specifically states what happens after the expiry of the fixed term you will be on a contractual periodic tenancy rather than statutory periodic tenancy. Notice period on a statutory periodic tenancy is one rental period for the tenant. 

But we digress as op is using a break clause in a fixed term anyway. 

george4064

No harm in speaking with your landlord, explaining your situation and see if you can agree on something a bit better for you. Your landlord might be quite receptive and flexible.

lookstraightahead

We always wait for exchange. Could be very stressful otherwise. You might waste a months rent, but you might spend a whole lot more if things don't go as planned.

FTR

Give notice. If in a month's time, exchange hasn't happened and you're getting more worried you can always ring you landlord up and ask for another month. I can't see why that would be a problem if they haven't found a new tenant yet.

Yes it's a mild gamble, but isn't the whole of this process.  

lookstraightahead

FTR said:

Give notice. If in a month's time, exchange hasn't happened and you're getting more worried you can always ring you landlord up and ask for another month. I can't see why that would be a problem if they haven't found a new tenant yet.

Yes it's a mild gamble, but isn't the whole of this process.  

They won't have found another tenant yet as they haven't handed in their notice. Once notice is given they will feel obliged to accommodate the landlord and let people see the property which adds to the stress.

the gamble here is homelessness.