Buying a property sold via assisted sale

lis1320

Hi all,

We are interested in a property which is being sold via assisted sale. The current owners are buying a new build and the developer is taking care of the sale. Having done some research about this, I understand that the developer will want to exchange within weeks, whereas the new build property isn't actually estimated to be ready until October (the roof is on if that gives any more idea about how much longer it may take). We will not be able to complete our sale until the current owners complete on their new build.

Our obvious worry is getting a mortgage offer in place which then expires if the new build is delayed. The speedy exchange would mean we are tied to the purchase and risk losing our deposit.  We know developers aren't keen on making adjustments but does anyone know if it's possible to get the long stop completion into the contract so that we get our deposit back should the developer not deliver on the new build in time?

It feels as if we'd be taking on the worries of waiting on a new build without actually getting a new build ourselves. Also, since this is being done via assisted sale instead of part exchange, the price of the property we are interested in is in line with the prices nearby, it doesn't seem it's being sold at a discounted price to facilitate a quick sale. 

Saying all this, we do like the property a lot and we are chain free, able to move at quick notice. We don't mind the waiting, but don't want to assume we would just get a new mortgage offer if one expired. Plus, house prices might have fallen by then. Is there anything we can do to safeguard ourselves?

Finally to add, we have had to pull out of a leasehold sale recently due to ground rent and service charge issues, and although our solicitor is amazing, we did lose money via abortive costs. We don't want to instruct again in order to find out this is too risky to us and have to pull out again, losing money and wasting the seller's time. 

Any advice would be welcome. Thank you

eddddy

It sounds like you have a very good grasp of all the potential problems and risks.

Maybe the best plan is to discuss the issues with the developer - and see if they'll do anything to reduce the risks. For example - a later exchange of contracts, an earlier long stop date, etc.

lis1320

eddddy said:

It sounds like you have a very good grasp of all the potential problems and risks.

Maybe the best plan is to discuss the issues with the developer - and see if they'll do anything to reduce the risks. For example - a later exchange of contracts, an earlier long stop date, etc.

The vendors have now agreed to move out by a specific date (they will move in with family if their new build isn’t ready)  in order for our mortgage offer to not run out.

I think this would solve the problem, means we won’t have to exchange without a completion date. Just to play devil’s advocate, what if they don’t actually move out by said date and we do lose the mortgage and deposit? Can anything be written into contracts to protect us?