Advice sought about putting on offer in for a flat

RalphRoister

I have recently agreed the sale of my house but we won’t exchange until December.

I found a new flat and have had my offer accepted. The seller is aware and happy that I can’t exchange until December, according to the estate agent.

My worry is that if I instruct a solicitor and purchase a new mortgage product and the seller then has a better offer before December rolls around I’m going to lose money on those purchases.

Does this sort of thing happen?

Are there any protections I can rely on?

Can wiser heads than mine offer me any advice?

Woodstok2000

England? Or more civilised location (I.e.Scotland)

user1977

The obvious way of securing your sale would be to exchange contracts. But up to you whether you want to do that before you have your purchase tied up.

Myci85

With a flat, the whole process could take 6 months to go through to completion anyway, so I wouldn't be too concerned. Is the chain complete? Or do the people either side of you need to sell/find somewhere to buy?

ExEstateAgent

Until you exchange contracts on either sale or purchase either party can walk away, end of.

If you agree a mortgage offer now it probably will have expired by December so no point in doing that until nearer the time (assuming you know you can get the mortgage now and nothing changes in the meantime).

As for the solicitors, just ask them to do the minimum required at this stage. Also many solicitors will offer something like no sale no fee (apart from disbursements).

TroubledTarts

No guarantees where, equally something might happen to make you change your mind

grumpy_codger

My worry is that if I instruct a solicitor and purchase a new mortgage product and the seller then has a better offer before December rolls around I’m going to lose money on those purchases.

With mortgage I think you lose only the broker/advisor's fee if you use one. You can apply directly.

RalphRoister

https://forums.moneysavingexpert.com/discussion/comment/82072882#Comment_82072882

Yes, England.

Albermarle

There is also a possibility that you lose your buyers.

FlorayG

This sort of thing happens daily. A buyer or seller can pull out of the deal right up until the moment contracts are exchanged; a friend of mine had a buyer pull out hours before finalising and she lost the property she was going to buy and had to start again. Everyone in that chain lost money to solicitors fees

sheenas

https://forums.moneysavingexpert.com/discussion/comment/82073432#Comment_82073432

about time England implemented the good points of the Scottish system.