House Purchase Exchange Unrealistic Timeline - Guidance Needed

annetheman

I would tell them that your lender will not agree the mortgage until solicitor has duly reported that everything is in order and all enquiries are satisfied - since solicitor's enquiries will not be concluded by end October, you cannot agree to the terms - do they wish to cancel the sale at this point or are they happy to proceed with the new agreed price but within realistic timelines?

Assure them you will move as quickly as you can, within the bounds of reason to allow for due diligence on your end. 

If they pull out, they'll have the same issue with another buyer, most likely, so it's in their interests to let things go their way at whatever pace is needed, too.

My anecdotal experience only: my solicitor would not exchange until everything was resolved (including title application now ongoing - hence I'm 8 months into purchase!). I also had to pull out of a purchase in February because timelines didn't work for the seller - they wanted to complete by end March and I only got a buyer start of Feb for a leasehold shared ownership flat. It was in everyone's best interests for it to end ASAP - they got a buyer same day paying £5k more and I got another house in an amazing location for £25k below asking. 

So it'll work out okay if it doesn't work out on this one, in my experience!

Charlie1985

Hi Everyone,

Many thanks for the advice and guidance. We decided to adopt an approach to cut communication with the agent regarding exchange/completion dates and are now using our solicitor to communicate directly with the sellers solicitors. We have asked our solicitor to outline the below to the sellers solicitors:

1. Advise them why we cannot meet the 30th Oct exchange date
2. Share a view of when we think we will be in a position to exchange
3. Advise we are not interested at purchasing at the higher price
4. Ask what the driver is behind the 30th Oct date?

Note we are bottom of the chain, have nothing to sell so in a good position to move forward.

chanz4

I would go back, know one in the right mind will exchange without

TheJP

I think its clear they know you wont be ready to exchange in time so for me the £5k reduction is cloak and dagger. Play their bluff and say we dont agree to the terms and wont be able to exchange in time as the process wont have concluded by then due to timelines outside of our control.

If they still insist then tell them youll revert to other properties that you are interested that are still in the market.

Charlie1985

Further update our solicitors have expedited the final search now due back 28/10. They have advised realistically the earliest exchange can occur would be 04/11 (3 working days after the deadline). Sellers are being persistent and keep saying unless exchange is met by 30/10 they will revert the price and withdraw from the sale.

The sellers are proving quite difficult to work with.

Charlie1985

Charlie1985 said:

Further update our solicitors have expedited the final search now due back 28/10. They have advised realistically the earliest exchange can occur would be 04/11 (3 working days after the deadline). Sellers are being persistent and keep saying unless exchange is met by 30/10 they will revert the price and withdraw from the sale.

The sellers are proving quite difficult to work with.

Any tips folks on how best to handle this now? 

housebuyer143

Charlie1985 said:

Charlie1985 said:

Further update our solicitors have expedited the final search now due back 28/10. They have advised realistically the earliest exchange can occur would be 04/11 (3 working days after the deadline). Sellers are being persistent and keep saying unless exchange is met by 30/10 they will revert the price and withdraw from the sale.

The sellers are proving quite difficult to work with.

Any tips folks on how best to handle this now? 

Your sellers had no intention of reducing the price, that's why they set you an impossible deadline.

Do you want the house? If you don't care then hold your ground and tell them the requested date is completely ludicrous and you will not be buying it at £645k. Either they reduce it or you walk. You need to mean it though. 

Honestly though, it's so in little in the scheme of things if I was sold on the house and I really wanted it I would just pay the extra and carry on. Someone said before that 0.8% is all it is. 

I don't think they would lose you over £5k but you need to be willing to call their bluff. 

Tiglet2

Both you and the seller are in the hands of your respective solicitors and it is they who work towards any suggested dates.  Buyers and sellers can only suggest dates but realistically your solicitor is the only party fighting in your corner.  Your solicitor states they are not ready to exchange, so you should listen to them.  If you instruct your solicitors to go ahead anyway, then expect to sign a waiver to say that you agreed to proceed without all the due diligence being done.

I'd be inclined to not engage in these conversations at all and only comment through your own solicitor.  Don't engage with the EA, who acts for the seller and is also keen to receive their commission and definitely don't engage directly with the seller.  If necessary ask your solicitor to point out to the seller's solicitor that due diligence hasn't been satisfied yet and until it is, you are not in a position to proceed to an exchange.  There is far more risk on the buyer than the seller if you agree to this.

EssexHebridean

Tiglet2 said:

Both you and the seller are in the hands of your respective solicitors and it is they who work towards any suggested dates.  Buyers and sellers can only suggest dates but realistically your solicitor is the only party fighting in your corner.  Your solicitor states they are not ready to exchange, so you should listen to them.  If you instruct your solicitors to go ahead anyway, then expect to sign a waiver to say that you agreed to proceed without all the due diligence being done.

I'd be inclined to not engage in these conversations at all and only comment through your own solicitor.  Don't engage with the EA, who acts for the seller and is also keen to receive their commission and definitely don't engage directly with the seller.  If necessary ask your solicitor to point out to the seller's solicitor that due diligence hasn't been satisfied yet and until it is, you are not in a position to proceed to an exchange.  There is far more risk on the buyer than the seller if you agree to this.

BIB - this almost certainly isn't an option for the OP as their lender will not entertain this approach. 

GDB2222

housebuyer143 said:

BonaDea said:

A lot of people are expecting capital gains tax to rise from midnight on 30 October so perhaps that's what's driving this.  If the last local area search isn't due back till then, you could take a view on what reduction in price you might accept to induce you to forego waiting for that search.  Otherwise, if they are trying to avoid additional CGT liability, they stand no chance of doing so with you or with an alternative buyer.  After 30 Oct their next buyer's lender might only value at £632K as well, that buyer might not be willing to sink an extra £8K of their own funds into it, and they'd have the extra CGT to find.  And the vendors will have all the costs they've expended and will expend to take into account.  So I'd have thought it was a no-brainer from their p.o.v to offer you a reduction to abandon the final search and exchange by their deadline.

But they need to complete by 30th to avoid it, not exchange. They are not asking the OP to complete, so I doubt that's the reason.
No reduction should encourage the OP to exchange without the searches and completed enquiries, because they might end up with no mortgage monies and a house they are committed to buy. 

CGT is generally based on the contract date, not completion.