Being pressured to exchange/complete same day but let the current owners live in the property!!

Twins

Hello all.   Thanks for those who have been following my drama from the beginning.   Just when I think we've passed Go, we go straight back to Jail!!  Honestly, you can't make this up.

A bit of background history, we are going to BTL on our current property and have remortgaged using funds for onwards residential purchase.   Today we found out that there is a condition in the Metro mortgage saying "completion must happen concurrently, with the purchase of the new residential purchase".   

Now our solicitor is saying that exchange and completion must happen all on the same day.  The problem we have is that the vendor cannot move until end of November, and they are buying a new build so need our deposit to send onto the builder asap so a same day exchange and completion won't work.

The estate agent is pressuring me to go ahead with the same day exchange/completion and to let the current owners stay in the property until the end of November which is the earliest they can move out.  But that is such a huge risk!!   Please tell me all the reasons why this is a bad idea and any ideas on what I can do here??   I'm getting no joy from our solicitor on how we can get around this.

Thank you!

Maka344

That’s a huge risk as mentioned. What if their new build is delayed, they then can’t afford a mortgage if their deal expires and don’t end up leaving? 

user1977

Twins said:

our solicitor is saying that exchange and completion must happen all on the same day.

Why does it need to be same day? Doesn't make sense to me from what you've told us.

dimbo61

You would become a Landlord 
Is your new property going to be bought with a BTL mortgage ? 
Not a good idea in any way.
They can move out and rent somewhere or Airbnb 

Twins

dimbo61 said:

You would become a Landlord 
Is your new property going to be bought with a BTL mortgage ? 
Not a good idea in any way.
They can move out and rent somewhere or Airbnb 

Our current house will be BTL, we will be buying a home as residential.   They said the earliest they can move is end of November so doing we can't do an exchange/complete same day as they can't move and so we are now at stuck as to what to do?! 

Twins

@dimbo61 those are the conditions set by the bank in the BTL Mortgage offer, or that's how the Solicitor is saying.  Our broker on the other hand is saying something else.   He is saying that's not right and has done other BTL/residential mortgages and not required same day exchange/complete so I'm literally at a loss

user1977

Twins said:

@dimbo61 those are the conditions set by the bank in the BTL Mortgage offer, or that's how the Solicitor is saying.

They say that you need to complete your remortgage on the same day that you complete your purchase. Your lender doesn't care when you exchange, so where is the "same day exchange and completion" coming from?

housebuyer143

Lots of lenders of let to buy conditions are onward purchase required and to ensure this you need simultaneous completion. You can't change this if that is what they want. 

It's a very bad idea to let them live in the property not too mention it's probably a beach of your mortgage conditions for vacant possession.

Can you not exchange/complete on all at the same time at the end of the month? It is not your problem if they don't have the deposit for the new build, most normal purchases are unlikely to exchange without a fixed completion date, which seems to be what they want you to do?

Twins

user1977 said:

Twins said:

@dimbo61 those are the conditions set by the bank in the BTL Mortgage offer, or that's how the Solicitor is saying.

They say that you need to complete your remortgage on the same day that you complete your purchase. Your lender doesn't care when you exchange, so where is the "same day exchange and completion" coming from?

It's coming from the Solicitor, well actually from both solicitors as we have one instructed for the BTL and one for the residential and both saying the same thing.  However, our broker is saying something else.   He's saying he's done other BTL's/residential mortgages before and never come across this condition before so I feel like I'm stuck in the middle whilst all the time I'm getting immense pressure from the estate agent to go ahead with this a same day exchange/complete which we do NOT want to do. 

At this point of time my mental health has taken such a beating I am wondering if all this stress is worth it.

bhavikbuzz

Twins said:

Hello all.   Thanks for those who have been following my drama from the beginning.   Just when I think we've passed Go, we go straight back to Jail!!  Honestly, you can't make this up.

A bit of background history, we are going to BTL on our current property and have remortgaged using funds for onwards residential purchase.   Today we found out that there is a condition in the Metro mortgage saying "completion must happen concurrently, with the purchase of the new residential purchase".   

Now our solicitor is saying that exchange and completion must happen all on the same day.  The problem we have is that the vendor cannot move until end of November, and they are buying a new build so need our deposit to send onto the builder asap so a same day exchange and completion won't work.

The estate agent is pressuring me to go ahead with the same day exchange/completion and to let the current owners stay in the property until the end of November which is the earliest they can move out.  But that is such a huge risk!!   Please tell me all the reasons why this is a bad idea and any ideas on what I can do here??   I'm getting no joy from our solicitor on how we can get around this.

Thank you!

Just a suggestion. You can let them move into your current house which is a btl at an agreed rent and short contract? That way you move to your new house..your btl is tenanted.

user1977

Well, I suggest you ask the solicitors to explain to you why it needs to be simultaneous exchange and completion, if they haven't already