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

Thrugelmir

eddddy said:

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?

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".

Why would people waste their time playing games. Everybody in the chain has to come to an agreement. There'll be lots of huffing and puffing as everyone will have their own agenda that's the most convenient to them. Ultimately may require a degree of compromise. 

Kuztardd

A slight update..
Thanks for all your suggestions, really helpful.

So, we outlined to the agent we HAVE to exchange before our set date so we don't lose our mortgage offer.

Agent then came back and said that vendor wanted to exchange ASAP and we should aim for  completion by our preferred date.
Ok , cool!

We asked if the whole chain was ready, agent said, she didn't know, that is for the solicitors to find out.
Is it normal for agents not to know the status of the whole chain?

We were told, the vendor will apparently break the chain if need be. bear in mind he marketed his home as end of chain back in October, and then changed his mind (once we were fully invested. )

So needless to say we don't have much faith in the promise, but could only hope.

..Yet the very next day, the agent tells us that our vendor, now wants to do a full survey on the house he is buying, even though he had his offer accepted on that place 5 months ago, and the chain closed 5 weeks ago! 

This has thrown us.
Who waits 5 months to do a full survey?

I am just ranting, through utter frustration!

[Deleted User]

Kuztardd said:

Is it normal for agents not to know the status of the whole chain?

Yes, completely normal.

simon_or

Call me cynical, but it looks like the vendor just wants you to exchange 'ASAP' because then you're committed and can't do anything if the completion gets delayed beyond your mortgage offer, and it will.

TBagpuss

simon_or said:

Call me cynical, but it looks like the vendor just wants you to exchange 'ASAP' because then you're committed and can't do anything if the completion gets delayed beyond your mortgage offer, and it will.

Well, except that cpmpletion date is fixed on exhcange so if the vendor then fails to complete they are potentially on the hook for the resulting costs which could get very expensive, very fast. 

simon_or

TBagpuss said:

simon_or said:

Call me cynical, but it looks like the vendor just wants you to exchange 'ASAP' because then you're committed and can't do anything if the completion gets delayed beyond your mortgage offer, and it will.

Well, except that cpmpletion date is fixed on exhcange so if the vendor then fails to complete they are potentially on the hook for the resulting costs which could get very expensive, very fast. 

Thank you for the clarification, I wasn't aware. I thought the penalties/costs kick in only after a certain period of time post the agreed date.

aoleks

If you exchange and they fail to complete, they are liable for costs. Unfortunately, this doesn’t mean anything and will most likely not help you.

it only kicks in after a legal reminder from your solicitor and like any other legal matter, there is no guarantee you will win even if you’re in the right.

even if you did, if your mortgage offer expires, you won’t be able to claim the increased interest costs on the seller, so suing won’t help at all.

I would exchange 2 days before completion, I would move completion two days early (22nd) and withdraw the funds on the 20th. Better pay 2 days of cheap interest (a pack of cigarettes) than risking paying thousands as a result of a new offer.