Buying a house but now the sellers can't move out until next year!

TripleH

As you will need a new mortgage on worse terms because of the delay in completion, I would argue you should ask for a reduction in price as the vendor's decision will cost you more money.

I wouldn't wait, but that is me.

ciderboy2009

OP - if you do decide to go ahead then make sure that your solicitor insists on a "long stop" date in the contract (ie: a date whereby you can pull out of the purchase without penalty). 

Normally this would be just befor your mortgage offer expires to protect you if you cannot get the offer extended.  However, in your case you already know that this date won't be met.

I would ask your solicitor to advise the best way forward to ensure that you are protected should you be unable to proceed in 8 months time (hopefully you are using a real solicitor rather than a conveyancing factory so you can get decent advice).

Marvel1

Don't drop out of this one, put ot all on hold and keep looking, find something better great, if not and they want to exchange then seek advice from you solicator on all risks involved if you do.

Flugelhorn

RAS said:

Once you exchange, neither of you can back out without penalty (losing your deposit in your case).

But you will have to exchange soon,  anything from a couple of weeks to a couple of months time, and then won't complete until the end of the year, quite possibly well into 2023.

What is the situation with your mortgage when that happens? Any risk you could end up having exchanged and something derailing the mortgage before you complete?

that is the problem - they can't (shouldn't) exchange without guaranteed funds in place and if the mortgage offer runs out before the agreed date then they will have serious problems

do the vendors know that your mortgage offer will expire?

Joyful

I bought a new build which was delayed for 4 months. My buyers would not change the entry date. I put things into storage and luckily rented from a friend. If they dont agree to rent, you have to think if prices go up, they might decide to ask for a higher amount and you might lose the house.

powerspowers

I’d keep looking for a property but with this on a back burner if you don’t find anything you like or are having difficulty getting offers accepted. Im not sure I’d exchange on it so far in advance though - although presumably that stops them putting the price up at last minute! 

Tough decision, work out what your red lines are in advance to take some of the emotion out of it. There’s always other houses! 

prowla

It's unfair to label the vendors as not caring, entitled, and so-on, as they may have made their plans in good faith and have now had the schedule pushed out; it's sensible for them not to want to move twice or be in limbo in a short-term rental (if they can find one).

That doesn't help the OP, though; I'd agree with the suggestion to look elsewhere, but not bail-out on this original purchase yet.

The risk/likelihood is that when the vendors are given the green light by their builders, property prices will have gone up and they'll need to reassess the value; that'll mean going back to the mortgage provider for an increase.

koalakoala

Better look for something else. This house isn’t actually for sale at the moment is it…..

SuseOrm

The issue you have is this if house prices of risen by another 10% by the time it comes to exchange they can literally just tell you they want another 20 grand or they’ll sell to somebody else and in the meantime you’ve missed out on 2022 prices.  Of course that could apply the other way but I suspect they won’t be offering you to have a 10% discount.  

GDB2222

If @lynxxx pulls out now, surely your vendors will lose their new build? It works like this:

The developer will insist on your vendors exchanging contracts to buy the new build pretty soon, probably in the next month or two. They may well already be nagging for this.

To exchange, they ideally need to tie up the sale of their house at the same time. That’s not 100%. They may have the deposit for their new build in cash, and they may be prepared to take their chances on being able to Sell later. But, most vendors want to exchange simultaneously on their sale and purchase.

So, if you insist on completion within say three months, they either have to tell you to get lost (and probably lose their new build) or they have to agree to your terms. If they dump you as a purchaser that doesn’t help them really, as they won’t find anyone else able to exchange within the developer’s timescale.

So, I think you should stand your ground, and say you are not interested in an 8 months completion.