Top of the chain causing delays to exchange - stick with it or move on?

hellabella999

We are FTBs at the bottom of a house purchase chain of 4. The chain was complete at the beginning of August. Our mortgage offer (5 yr fixed rate) runs out mid Feb. After that, we have ben told our offer will not be rolled over. Mortgage payments on the house we are trying to purchase will be unaffordable with the mortgage rates that are now available.

The 3 house purchases at the bottom of the chain are ready to complete. Completion was set for 23 November, with everyone to exchange as soon as ready. We found out this week that the solicitors representing the purchasing clients at the top of the chain still had to receive a management pack and were waiting for enquiries to be answered. This is after the estate agents representing the house sale at the top of the chain said that everything was ready to exchange the week before last. Clearly there is some miscommunication at the top of the chain.

Our sellers' estate agent informed us of the delay on Tuesday. We explained that we need to exchange by 29 Nov as we are in rented (otherwise we will be on the hook for Jan rent payment too). We could swallow this cost if we had to, but obviously would prefer not to! The estate agent said they weren't even prepared to discuss new exchange/completion dates until the top of the chain was ready.

The house purchase causing a delay is a leasehold purchase, which I understand (from Googling) normally takes longer than freehold purchases to sort. However I am worried that they don't fully understand the time pressure that the rest of chain is under to complete (top of chain is cash purchase). As the bottom of the chain we have no estate agent representing our interests, and our solicitor won't lift a finger (made a complaint, but I fear too late to effect actual change now as they have done all the work). All the information we get is from the sellers' estate agent, who is not representing our interests. It is very hard to gauge if the sellers' estate agent is stringing us along and the top of the chain is actually having second thoughts.

Is there anything I can do to put pressure on the top of the chain? Should I be going "full Karen" on the sellers estate agent to motivate them e.g. threatening to pull out? Are these kind of delays normal? As we are 3 months off our mortgage offer running out (which can be transferred to another property). I am wondering if we just cut our losses and look for another chain free property?

Maybe this is one of those things we just need to white knuckle and hope works out, but never having bought a property before I have no idea. We would appreciate some advice from experienced buyers!

housebuyer143

It sounds like it's only been 3 months since the top of the chain got started. To be ready to exchange now would be very lucky and like you say, it's leasehold so they take longer and management packs can take a notoriously long time to be recieved. 
It sounds like everything you have been told, it's ticking along as it should but just isn't going the speed at which you want. Who said you were ready to complete? If it was the agent I would stop listening to them as only the solicitors will be able to tell you when they are ready. Agents tend to try and push a date that ends up being unrealistic.

Your offer does not expire until Feb so you have 3 months which should be plenty of time. 

You really can't rush these things. You threaten to pull out and you need to be prepared to do it and honestly, there is no point doing this as your threat won't make the top of the chain exchange if they have not done all the checks. 
You are going to be very unlikely to find a new place before your offer expires. It took me 3.5 months to sell my chain free house, so it won't necessarily be faster. 

It's a stressful time but I would stick with it and if you get the Jan and haven't exchanged I would then be pushing your seller to move into rented.

MikeJXE

First time buyers are in a unique position as they always have been, everyone selling wants a first time buyer, nothing to sell. You are in a market where property prices are going down unfortunately mortgage interest going up. You can't do anything about the latter it's already happened, if I was not happy with the progress I would pull out, chains are never good places to be especially in the current climate. Full Karen will make no difference as they get that all the time, been there, done that and got the T-shirt. I have exchanged on many properties in the past and live in my 13th, I have always dealt with a solicitor and there is no way you can push the others along, in buying property with chains there's often hick ups. Sales can take 3 weeks my fastest purchase and 16 weeks my slowest. Like I said it's a falling market so you're not likely to lose out by moving on. If you have a mortgage in principle and a good deposit you will be the first choice of your next purchase, estate agents will love you.  I am not an advisor, just my own experience of 60 years, plus I am an ex builder. Good luck. 

MikeJXE

After reading your request in more depth I notice the top of the chain is a cash buyer in which case he holds all the cards, it could be because of a falling market he is looking for a reduction in the price he's paying or seen something he wants cheaper. I was a cash buyer but not a chain the complete sale took 3 weeks. I'm not sure you know what completion means so I'll tell you. The most important part of buying a property is the exchange of contract and depositing 10% of the purchase price, once thats done no one can back out, completion is when you get the keys, a date agreed on when you exchange which can be anytime in the future or even the same day, so, although the completion is delayed is the exchange also delayed ? I agree with some of what housebuyer143 is saying and these things do take time and it is a nerve racking experience, worse when you are buying and selling at the same time. If you are concerned about what you're being told ring around the other estate agents in the chain and get their views. The estate agent selling to you does have interest in representing your interests and wouldn't want to lose a first time buyer. 

TheJP

You have already gone full Karen and in that time morphed into Ken. Seriously, chill out. You made a complaint to your solicitor because the solicitor at the top of the chain isn't moving fast enough! Really. I get as an FTB you feel you have this all conquering power but in reality you don't have any, buckle up and wait because the real fun begins when you actually own the house!

Your mortgage offer ends in Feb, you have plenty of time if all the chains are ready however if you pull out and as you say transfer your offer to another property i would bet my own house that you wont make that deadline.

NameUnavailable

If you have made a formal complaint about your solicitor who is powerless to do anything about what is happening at the top of the chain, you might have shot yourself in the foot. Oh that one, put it to the bottom of the pile again!!

Tiglet2

hellabella999 said:

We are FTBs at the bottom of a house purchase chain of 4. The chain was complete at the beginning of August. Our mortgage offer (5 yr fixed rate) runs out mid Feb. After that, we have ben told our offer will not be rolled over. Mortgage payments on the house we are trying to purchase will be unaffordable with the mortgage rates that are now available.

The 3 house purchases at the bottom of the chain are ready to complete. Completion was set for 23 November, with everyone to exchange as soon as ready. Completion cannot be set for the 23rd, as Party No. 4 is not ready.  Only when all parties are ready, can a completion date be agreed, and it will be the solicitors who say when they are ready.  The estate agent cannot decide this.  We found out this week that the solicitors representing the purchasing clients at the top of the chain still had to receive a management pack and were waiting for enquiries to be answered.  If the management pack has not been received and enquiries not answered, then the solicitor is only part way through the transaction.   If 3 parties are ready but the 4th is not ready, then no completion date can be set.  This is after the estate agents representing the house sale at the top of the chain said that everything was ready to exchange the week before last. The estate agent cannot know whether they are ready or not.  They are not involved in the conveyancing work.  Clearly there is some miscommunication at the top of the chain.

Our sellers' estate agent informed us of the delay on Tuesday. We explained that we need to exchange by 29 Nov as we are in rented (otherwise we will be on the hook for Jan rent payment too).  You cannot give notice to the landlord until you exchange, otherwise you risk being homeless.  None of the solicitors doing the conveyancing work cares about your additional rent.  It will exchange when all 4 parties are ready and not before.  Whether that is in December/January or February is not important to them.  What is important is that the legal work has been completed first.  We could swallow this cost if we had to, but obviously would prefer not to! The estate agent said they weren't even prepared to discuss new exchange/completion dates until the top of the chain was ready.

The house purchase causing a delay is a leasehold purchase, which I understand (from Googling) normally takes longer than freehold purchases to sort. However I am worried that they don't fully understand the time pressure that the rest of chain is under to complete (top of chain is cash purchase). The top of the chain has been 'in the chain' less time than the people below them, and a leasehold property does take longer.  The solicitor still has to do their due diligence, so they need to take the time necessary to do this, regardless of the 'time pressure' you say you are under. As the bottom of the chain we have no estate agent representing our interests, and our solicitor won't lift a finger (made a complaint, but I fear too late to effect actual change now as they have done all the work). Your solicitor is only connected to the solicitor immediately above you.  They will have no information about the transaction further up the chain.  All the information we get is from the sellers' estate agent, who is not representing our interests. It is very hard to gauge if the sellers' estate agent is stringing us along and the top of the chain is actually having second thoughts.  You do know that estate agents are not included in the conveyancing work, therefore they have no access to solicitor's correspondence.  A lot of the information you get from the estate agent is Chinese whispers because they don't really know.  

Is there anything I can do to put pressure on the top of the chain? No.  Should I be going "full Karen" on the sellers estate agent to motivate them e.g. threatening to pull out? No.  Are these kind of delays normal? Yes.  As we are 3 months off our mortgage offer running out (which can be transferred to another property). I am wondering if we just cut our losses and look for another chain free property?  You would be starting the conveyancing work from the beginning.  Your lender will need to send out another mortgage offer to the solicitors with the updated property, with a new valuation.  

Maybe this is one of those things we just need to white knuckle and hope works out, but never having bought a property before I have no idea. We would appreciate some advice from experienced buyers!

My comments in bold.
Sorry, but as FTB you have more flexibility than the rest of the chain.  I get that you want to be in your own home, and it will happen, but patience is needed.  The solicitors are doing the work and working towards completion, but really it has only been three months.  Most transactions are taking 5 months, if not more, nowadays and leasehold can delay matters.

Ksw3

Our solicitor said the average time to completion is now 5 months. 

We decided to stick with the house and hope we met the mortgage offer deadline. If we don't we will look elsewhere and reflect our borrowing power in the price. The current seller is unlikely to drop the 30-40k we need so we would have to start looking again. 

There's not a lot you can do except ask that someone breaks the chain.

juliebunny

I'm in a similar position except it's the bottom of the chain messing around who allegedly wanted a quick purchase before going on holiday for a month without doing anything!!! it's a nightmare buying and selling in England, we should go to the Scottish system.
Everyone said it would be stressful but it didn't have to be, it's all human caused...I'm seeing a lot of houses 'unexpectedly back on the market' in my inbox but I'm holding out for my new home...might need a valium or 2 along the way though!!!

diystarter7

Another thread that demonstrates avoid a chain if at all possible.

MrCarrot

I'm in a very simple chain and now completing beginning of December (4 months).  The wait drives you mad.  Weeks roll by with nothing happening and you become convinced nobody is doing anything and it's going to fall through.  As others advised me, all of a sudden, right towards the end there is a flurry of activity and suddenly you have 2 weeks to pack.