New Build / Selling House dilemma

Herzlos

DE_612183 said:

Thanks for the advice - sorry I should have added - renting / Air BnB is not an option.

Are you able to say why? It's likely the only way that this transaction is going to worth smoothly.

She can try and drag on the sale process but getting it to line up with the new build availability is going to be difficult. 

Albermarle

DE_612183 said:

swingaloo said:

It seems that she will have to compromise on what is an option and what is not. 

From reading your opening posts it seems that she is not bothered about inconveniencing the buyer or being fair with him as in 'Tell him where to go' and 'string him along till February which is a mere month away then hope its too late for him to pull out'.

So she is willing to string him along until hopefully its too late for him to back out? What about his life and the lives of those who may be in the chain behind him

It's highly unlikely that the new build will be ready when they say it will, has she thought that the builders may be doing exactly the same thing to her and using delaying tactics.

Its fine saying every suggestion is 'Not an option'  but something has to give.  Selling a house needs co-operation and fairness from all those involved, she cant be expecting the rest of the chain to be happy to wait for her convenient moment.

The bottom line is that she has no confirmed date for the new build to be ready.

There is no chain behind him - he's in rented - I have suggested she perhaps offers him the equivalent of a couple of months rental off the sale price - he'd also save a bit on stamp then as well...

My SIL was in the same position. Buying a new property and selling her existing one. Due to her age moving via a rental would have been difficult.
The new property completion was delayed, but not by too long. Her buyers were in a rental so not so concerned.
Then there was an unexpected delay in that the developer wanted to delay exchanging contracts and the completion date, by a couple of months. Usually they are pushing the other way and we never did get to the bottom of why, some kind of financial accounting issue I think.
Anyway her buyers nearly pulled out, but in the end decided to stick it out and it all worked out fine in the end.
Hopefully her buyers are as reasonable in the end, especially if she crosses their palm with silver, as you suggest.

eddddy

DE_612183 said:

She is reluctant to tell him where to go as she can't secure the NB without having a buyer.

The ideal scenario is that the buyer waits a month - then realises that even if they then pull out and find a new property it's likely to take 4 months which would then take them to February anyway - a mere month from the date of the new build being ready.

The options are really:

1. Try and get a new buyer and hope the NB doesn't go in the meantime.
2. Wait a month and hope the buyer changes their mind and the NB is still available.
3. Be up front with the buyer and say this is the only house they want and if they can't wait till March then it's best to stop the sale now.

Typically, the newbuild developer will want your daughter to do the following...

• Exchange contracts within 4 weeks

• Agree to "completion on notice" - i.e. wait until the developer says "The house is ready, you must complete in 10 days time"

• Agree to a longstop date - e.g. in June 2026. Meaning that if the newbuild isn't ready by June 2026, your daughter can choose to walk away

Which means, realistically, your daughter's buyer must agree to those same terms.


So your daughter's buyer might not be keen on those terms for reasons including...

• Their mortgage offer might run out before June 2026 - meaning they might have to apply for another mortgage on worse terms, or worst case, their new application might be rejected.

• It might get to June 2026, and your daughter decides to walk away - meaning your daughter's buyer is forced to walk away as well, leaving them back at square one, and having to find another property to buy.

• If the 10 days "completion on notice" comes at the wrong time, the buyer might have to pay rent for 6+ weeks at the same time as paying their mortgage

• The buyer might be served a section 21 notice. Then it might be that they have to move out of their property before June 2026

• Plus some people worry that the more time between exchange and completion - the more time there is for something bad to happen. e.g. More time to be made redundant, meaning their mortgage offer is withdrawn

As others suggest, your daughter could try offering a chunky discount to the buyer, to persuade them to take on all these types of risks.

Otherwise, your daughter's buyer could just find another property which doesn't come with all these risks.