Am I worried for nothing? Exchanging 3 months prior to completion.Stressing out

lookstraightahead

cramsteems said:

aoleks said:

th seller is asking you something unreasonable, which is to exchange a huge amount of time before completion. all the risk is now on you and trust me, many thing can go wrong. say you'll agree on one condition: should the (same) bank not honour your mortgage offer in 3 months time, you will be allowed to rescind without losing your deposit.

otheriwse just wait and exchange a few days before, when there's more clarity.

We tried that, they will not allow us to add a clause like that in.

If we don’t exchange the new build company will force the sellers to pull out of the sale and look for another buyer.

We are at the total mercy of the new build seller who has total control and zero liability should anything happen. In fact they would gain the sellers deposit if something stopped it going through and they would be very happy about that!

So don't agree to it then. Pull out.

You are the only one taking a risk here.

davilown

cramsteems said:

As title suggests, we are about to send deposit over to buy a house, the sellers of which are buying a new build property which is why the exchange is being forced so early despite the house not being ready.

We have a completion date (we had to fight for this, they just wanted it to be on notice but our mortgage offer would likely expire and there is no guarantee we would have gotten another one).

I am worried that the mortgage offer could theoretically be retracted in between exchange and completion, and if we could not source another mortgage in time would lose our life savings (we are first time buyers and saved every penny ourselves).

Am I worrying for nothing? We have already managed to buy some time as they wanted to exchange 2 months ago. But if we don’t exchange next week the house will go back on the market.

Sorry if it’s been mentioned already, but why not offer a lower deposit? 

Also, have you had an extension on your mortgage offer already? If not, assuming the extension was a agreed, you would need to complete a full application again

aoleks

this could be financial suicide, don't agree to it any cost. extremely risky...

cramsteems

aoleks said:

this could be financial suicide, don't agree to it any cost. extremely risky...

Thanks for your response. What do you think is the riskiest part? We are going to try and make it the sellers responsibility to insure the property between exchange and completion. The risk I see is the mortgage offer being pulled, highly unlikely and we both have very secure jobs and won’t and never have taken anything out on finance. Very hard decision.

cramsteems

davilown said:

cramsteems said:

As title suggests, we are about to send deposit over to buy a house, the sellers of which are buying a new build property which is why the exchange is being forced so early despite the house not being ready.

We have a completion date (we had to fight for this, they just wanted it to be on notice but our mortgage offer would likely expire and there is no guarantee we would have gotten another one).

I am worried that the mortgage offer could theoretically be retracted in between exchange and completion, and if we could not source another mortgage in time would lose our life savings (we are first time buyers and saved every penny ourselves).

Am I worrying for nothing? We have already managed to buy some time as they wanted to exchange 2 months ago. But if we don’t exchange next week the house will go back on the market.

Sorry if it’s been mentioned already, but why not offer a lower deposit? 

Also, have you had an extension on your mortgage offer already? If not, assuming the extension was a agreed, you would need to complete a full application again

Lower deposit is not an option sadly. The mortgage offer expires on the same day as the long stop completion date, so we are covered there.

Thrugelmir

cramsteems said:

aoleks said:

this could be financial suicide, don't agree to it any cost. extremely risky...

We are going to try and make it the sellers responsibility to insure the property between exchange and completion. 

The sellers insurance provides you with no protection. As you are not the insured under the terms of the policy. 

rexmedorum

did we ever find out if it was completion on a specific date? Or on notice?

elsien

rexmedorum said:

did we ever find out if it was completion on a specific date? Or on notice?

There is mention of a long stop completion date. Is that a fixed date or still moveable? 

user1977

Thrugelmir said:

cramsteems said:

aoleks said:

this could be financial suicide, don't agree to it any cost. extremely risky...

We are going to try and make it the sellers responsibility to insure the property between exchange and completion. 

The sellers insurance provides you with no protection. As you are not the insured under the terms of the policy. 

You couple that with risk only being transferred on completion (and presumably a condition that either party can pull out if there is significant damage).

Thrugelmir

user1977 said:

Thrugelmir said:

cramsteems said:

aoleks said:

this could be financial suicide, don't agree to it any cost. extremely risky...

We are going to try and make it the sellers responsibility to insure the property between exchange and completion. 

The sellers insurance provides you with no protection. As you are not the insured under the terms of the policy. 

You couple that with risk only being transferred on completion (and presumably a condition that either party can pull out if there is significant damage).

Property suffering a fire during the period between exchange and completion is an expensive gamble to take.