Delay in exchange. I don't understand why?

pinkshoes

It's quite obvious.

The top of the chain's new build isn't going to be ready until the end of March, so as to not lose their buyer, they've said they'll break the chain and move into rented.

On the basis they perhaps haven't rented for a long time or have never rented, they have now just discovered that rentals require a 6 month minimum rental term, but they only need a couple of months rental...

So they're going to keep "looking" but the completion date will then creep closer and closer... 

hazyjo

YOU hold the cards here. If your vendors pull out, the top of the chain will be absolutely screwed. Set a date to exchange and mean it. If you've not exchanged, pull out. Let it become your vendor's problem, or the top of the chain. There's no way either of them will get a rental unless they use an Airbnb or stay with friends/family.

Either that and try to extend your mortgage offer. It's pretty obvious they're dragging it out until they can move into the new build.

bflare

hazyjo said:

YOU hold the cards here. If your vendors pull out, the top of the chain will be absolutely screwed. Set a date to exchange and mean it. If you've not exchanged, pull out. Let it become your vendor's problem, or the top of the chain. There's no way either of them will get a rental unless they use an Airbnb or stay with friends/family.

Either that and try to extend your mortgage offer. It's pretty obvious they're dragging it out until they can move into the new build.

I was going to mention to the EA on Monday that I'll be starting to look at alternative properties due to not being given any positive information. See if that improves the situation. I have started looking again however as my mortgage offer runs out at the end of March it looks like I'll need to try and extend it anyway or apply again. 

Slithery

Your mortgage offer is only valid for the current property anyway. Even if it wasn't about to expire you'd need to get a new offer for a new property.

hazyjo

bflare said:

hazyjo said:

YOU hold the cards here. If your vendors pull out, the top of the chain will be absolutely screwed. Set a date to exchange and mean it. If you've not exchanged, pull out. Let it become your vendor's problem, or the top of the chain. There's no way either of them will get a rental unless they use an Airbnb or stay with friends/family.

Either that and try to extend your mortgage offer. It's pretty obvious they're dragging it out until they can move into the new build.

I was going to mention to the EA on Monday that I'll be starting to look at alternative properties due to not being given any positive information. See if that improves the situation. I have started looking again however as my mortgage offer runs out at the end of March it looks like I'll need to try and extend it anyway or apply again. 

You really should give them the ultimatum though if you still want it. If you find somewhere else and pull out, then top of the chain have the most to lose. Not saying you should go ahead so they can get the house they want, but if they thought the chain was about to break, they would prob bend over backwards not to lose you. Unless they don't need to sell, they're mad for allowing it to drag on, especially in a chain of 3!

bflare

Slithery said:

Your mortgage offer is only valid for the current property anyway. Even if it wasn't about to expire you'd need to get a new offer for a new property.

Ah right ok yes of course. So I could enquire about extending the mortgage and tell the EA that ill wait until the extension runs out and say if we've not exchanged by then I'm pulling out. 

hazyjo

bflare said:

Slithery said:

Your mortgage offer is only valid for the current property anyway. Even if it wasn't about to expire you'd need to get a new offer for a new property.

Ah right ok yes of course. So I could enquire about extending the mortgage and tell the EA that ill wait until the extension runs out and say if we've not exchanged by then I'm pulling out. 

I'm not sure I'd give them that long tbh. If you think everyone's ready, I'd not give them over 2-3 more weeks to exchange.

bflare

hazyjo said:

bflare said:

hazyjo said:

YOU hold the cards here. If your vendors pull out, the top of the chain will be absolutely screwed. Set a date to exchange and mean it. If you've not exchanged, pull out. Let it become your vendor's problem, or the top of the chain. There's no way either of them will get a rental unless they use an Airbnb or stay with friends/family.

Either that and try to extend your mortgage offer. It's pretty obvious they're dragging it out until they can move into the new build.

I was going to mention to the EA on Monday that I'll be starting to look at alternative properties due to not being given any positive information. See if that improves the situation. I have started looking again however as my mortgage offer runs out at the end of March it looks like I'll need to try and extend it anyway or apply again. 

You really should give them the ultimatum though if you still want it. If you find somewhere else and pull out, then top of the chain have the most to lose. Not saying you should go ahead so they can get the house they want, but if they thought the chain was about to break, they would prob bend over backwards not to lose you. Unless they don't need to sell, they're mad for allowing it to drag on, especially in a chain of 3!

As far as I'm aware if the mortgage company allows an extension it's only usually one month so my plan was to enquire about an extension and give the end of that as my pulling out date. 

bflare

hazyjo said:

bflare said:

Slithery said:

Your mortgage offer is only valid for the current property anyway. Even if it wasn't about to expire you'd need to get a new offer for a new property.

Ah right ok yes of course. So I could enquire about extending the mortgage and tell the EA that ill wait until the extension runs out and say if we've not exchanged by then I'm pulling out. 

I'm not sure I'd give them that long tbh. If you think everyone's ready, I'd not give them over 2-3 more weeks to exchange.

To be honest I don't actually know whether to believe there's a chain of 3. When I originally viewed the house I was told that the vendors were looking at a new build that wouldn't be ready until April 2022. When I said that would be no good for me the EA changed the story and said they had decided against a new build. Then when I put the offer in they said my vendor had found a property but their vendor was buying a new build that wouldn't be ready until Jan / Feb latest. I now think it was all a fabrication. It's a bit of a coincidence how it's dragging on until April time which is the same time I was originally told about back at inquiry stage. 

My mortgage runs out 31st of March so I could say I'll give them until 12th March or I'm pulling out.

Tiglet2

It's all very well giving time limits and ultimatums, but if the vendor doesn't agree to move out or rent for a few weeks (necessitating two moves), what are you going to do then?  You need to mean it.

Your mortgage offer expires on 31st March so you do have until 31st March to complete, no need to state 12th March for the sake of a couple of weeks.  Your solicitor will know when the offer expires and will let the other solicitors in the chain know this. Mortgage lenders do extend mortgage offers so that shouldn't really be a problem for you.  It's only when extensions are requested again and again that lenders won't agree.  As a poster already said, if you go for another property, you will need a new mortgage offer.

I believe the vendor at the top of chain is trying to tie in the new build to your chain and that is why there are delays.

The EA will tell you whatever they think you want to hear, in order to keep you on side.