We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Gap between exchange and completion
Options
Pheriche
Posts: 8 Forumite
Buying a house. I've bought houses before but never really thought about the risk of something going wrong between exchange and completion. Perhaps that's because there has previously been only a week's gap and our vendors want a month (they are on holiday and don't want to move for a month, but want to firmly book removals).
The risk of something going wrong from our side is very low, but the consequences are very severe. Say we had a medical emergency after exchange; strictly speaking we would need to inform our lender, who could withdraw the mortgage offer. That would mean we could not complete, but would be on the hook to our vendors for 10% of the purchase price or more.
This sort of thing is a risk whatever the gap, but it seems that the risk is greater the longer the interval. One mitigation would be to have a later exchange, for them to book their mover before exchange, and for us to offer to cover the lost deposit if we failed to exchange. I'd much rather risk a couple of grand than 10% of the purchase price, but I guess this is quite irregular.
I can't find any way of insuring against this risk, and in the absence of such an option there is no safe way to buy a house, or am I missing something?
The risk of something going wrong from our side is very low, but the consequences are very severe. Say we had a medical emergency after exchange; strictly speaking we would need to inform our lender, who could withdraw the mortgage offer. That would mean we could not complete, but would be on the hook to our vendors for 10% of the purchase price or more.
This sort of thing is a risk whatever the gap, but it seems that the risk is greater the longer the interval. One mitigation would be to have a later exchange, for them to book their mover before exchange, and for us to offer to cover the lost deposit if we failed to exchange. I'd much rather risk a couple of grand than 10% of the purchase price, but I guess this is quite irregular.
I can't find any way of insuring against this risk, and in the absence of such an option there is no safe way to buy a house, or am I missing something?
0
Comments
-
You need to look at each of the risks individually...
Their house burns down... you can buy home insurance on their home from exchange
You become ill... you can buy income protection such that your income will continue through the duration of the illness
You find out your partner has been cheating on you for years and you split up... unfortunately an uninsurable risk
2 -
https://www.peskindlaw.com/cheater-insurance-one-option-if-your-spouse-has-an-affair/DullGreyGuy said:You need to look at each of the risks individually...
Their house burns down... you can buy home insurance on their home from exchange
You become ill... you can buy income protection such that your income will continue through the duration of the illness
You find out your partner has been cheating on you for years and you split up... unfortunately an uninsurable risk
0 -
You really can insure almost anything if you can find an underwriter willing.DE_612183 said:
https://www.peskindlaw.com/cheater-insurance-one-option-if-your-spouse-has-an-affair/DullGreyGuy said:You need to look at each of the risks individually...
Their house burns down... you can buy home insurance on their home from exchange
You become ill... you can buy income protection such that your income will continue through the duration of the illness
You find out your partner has been cheating on you for years and you split up... unfortunately an uninsurable risk
0 -
Back in the day, a month gap was normal. Anything shorter was the exception....
2 -
Offer to meet in the middle - two weeks between.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.8K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.8K Work, Benefits & Business
- 598.7K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards