Frustrating vendor is wanting to complete AFTER our mortgage application expires. what to do?

Kuztardd

Our purchase has been slow and frustrating since the vendor hasn't been completely honest with us.
Hoping you can give us some guidance on what to do, or dish up some hard truths.

• We made an offer on a dream flat in October. 

• The property was marketed as end of chain as they would move to their parents.

• Vendor wanted a quick sale, to be before Christmas.

• I dropped £25k on my property to make it happen.

• Vendor changed their mind mid December and opened the chain (much to our annoyance!)

• I broke the chain by selling my flat and completing 2 months ago (March) because my buyer wasn't willing to wait. 

• It is now month 2 of being 'homeless' and renting, paying for storage etc. Meanwhile waiting for a completion date.

• Now the chain of 4 households is finally complete, and dates are being discussed (relevant to the upcoming question…)

• Today we find out he wants to exchange ASAP.

In light of all this… (there are other things but this is the main info)

Our mortgage offer ends on 24th May.
It's super low. 5 years @1.03%
We can extend for a month until 24th June (advised that it's valid up until completion date only)

Advice needed…

We have just been told by the estate agents that the chain is wanting completion on 30th June. This is too late - a few days after our mortgage extension would end. To get a new mortgage would add ££££ in extra interest as rates are now around 2.5%

What would you do?

Thanks in advance.

Thrugelmir

Threaten to collapse the chain. 

steve866

Make it crystal clear to both your agent and solicitor that you need to complete by 24th June and this is non-negotiable. The difference is a few working days, if it’s possible to complete on 30th it should be possible to complete on 24th. 

tacpot12

I'd try to get the vendor to agree to complete no later than 24th June. This is only a week earlier. It will either be possible or not, but you need to be clear whether you are going to pull out if completion occurs after 24th June. This is a decision only you can make, but if you do, you will lose your costs to date, will have to continue to rent while you look for somewhere new, and crucially, you will have to get a new mortgage offer, probably at the higher rate.  

Under the above circumstances, I would suggest that you offer a further £1500 to vendor for completion by 24th June, just in case the offer of money makes a difference. If completion can only take place after 24th, you will need to consider whether you can actually afford the £1,500 extra. If you can, you will clearly try to remortgage at the earliest possible point. 

TheJP

Tell the seller that it needs to complete by the 24th or you will have to reduce your offer by £7.5k to cover the £1.5k pa over the 5 years.

eddddy

Kuztardd said:

We have just been told by the estate agents that the chain is wanting completion on 30th June. This is too late - a few days after our mortgage extension would end. To get a new mortgage would add well over £1.5k per year in extra interest as rates are around 2.5%

What would you do?

It's a negotiation. Everyone in the chain, including you, has an equal right to ask for a preferred completion date.


Also, bear in mind that the estate agent(s) might be playing a game. For example, they might have just picked "30th June" as a random date, and then phoned each person in the chain to say "everyone in the chain except you wants to complete on 30th June".

Ultimately, if you make the estate agent really believe there's a risk of you walking away if you can't complete by 24th June - they will push everyone else in the chain very hard to agree to complete by 24th June.

(But that assumes that all the solicitors can be ready in time.)

TripleH

I would tell the vendor that your mortgage offer runs out so there will be a delay so the 30th isn't possible as part of it.

When people understand there is a genuine reason (and nor you being difficult) then there tends to be more give found.

Flugelhorn

TripleH said:

I would tell the vendor that your mortgage offer runs out so there will be a delay so the 30th isn't possible as part of it.

When people understand there is a genuine reason (and nor you being difficult) then there tends to be more give found.

the vendor may not realise this - they may also have some annual leave planned and want to take it when they move - the trouble with these things is that it gets a bit like chinese whispers 

lookstraightahead

Personally, I would walk (not suggesting you do as you have to decide).

can't stand people who lie like this and lord it up over everyone else.

movilogo

Agreement in principle has no value other than confirming max amount you can borrow. Its expiring is no big deal.
Actual mortgage offer expiration is a different thing though. You may need to re-apply for a new mortgage.

Since you have the ability to collapse the chain, you have some leverage. Just tell them you want to complete early or you'll look for another property as prices now falling

propertyhunter

TheJP said:

Tell the seller that it needs to complete by the 24th or you will have to reduce your offer by £7.5k to cover the £1.5k pa over the 5 years.

I would do this if you can't move the date forward. You shouldn't be out of pocket when the ball is in their court.