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  • FIRST POST
    • CaPPsiE
    • By CaPPsiE 27th Sep 16, 3:51 PM
    • 103Posts
    • 9Thanks
    CaPPsiE
    Delayed completion
    • #1
    • 27th Sep 16, 3:51 PM
    Delayed completion 27th Sep 16 at 3:51 PM
    Hi,

    Due to personal circumstances, I'm considering selling my property under the rather different 'delayed completion' option.

    As far as I understand, everything goes ahead as in a normal sale except the completion which is set for a future time as agreed by both parties.

    Can anyone offer any advice? Ideally pros and cons etc.?

    Thanks!
    Adam.
    Thanks,
    Adam.
Page 1
    • HouseBuyer77
    • By HouseBuyer77 27th Sep 16, 4:16 PM
    • 927 Posts
    • 913 Thanks
    HouseBuyer77
    • #2
    • 27th Sep 16, 4:16 PM
    • #2
    • 27th Sep 16, 4:16 PM
    As in a longer gap than usual between exchange and completion but otherwise a perfectly normal sale?

    Is there an onward purchase involved?

    If no onward purchase there isn't too much risk to you. The problem with a long gap between exchange and completion is there's more times
    for things to happen which prevent completion. For example your buyer may get their mortgage offer pulled for some reason and be unable to complete. That's a major problem for them (you can keep their deposit) but less so for you, unless you are dependent upon that money turning up (e.g. for your own onward house purchase).

    There's also the risk major damage could occur to the house between exchange and completion or even total loss (house burns down) leaving you unable to complete. But that's why you have insurance.
    • eddddy
    • By eddddy 27th Sep 16, 5:02 PM
    • 7,250 Posts
    • 7,205 Thanks
    eddddy
    • #3
    • 27th Sep 16, 5:02 PM
    • #3
    • 27th Sep 16, 5:02 PM
    The main challenge might be finding a buyer ho agrees to this.

    If they're an FTB, it might be easier. But if they have a property to sell, the whole chain beneath them will have to agree to your timescales.
    • danslenoir
    • By danslenoir 27th Sep 16, 5:38 PM
    • 218 Posts
    • 260 Thanks
    danslenoir
    • #4
    • 27th Sep 16, 5:38 PM
    • #4
    • 27th Sep 16, 5:38 PM
    The main challenge might be finding a buyer ho agrees to this.

    If they're an FTB, it might be easier. But if they have a property to sell, the whole chain beneath them will have to agree to your timescales.
    Originally posted by eddddy
    This.

    I'd imagine that delayed completion would be a deal-breaker for most people.

    I guess the kind of people who potentially would be interested to buy on this basis would be people looking at your property as an investment rather than a place to live in themselves. But then it would have to be attractively priced as investors are typically willing to pay less than people buying a home.

    If you don't mind sharing, what personal circumstances have led you to consider this option your only one? I suspect it is going to have a substantial impact on your ability to sell and the price you are able to achieve.
    • G_M
    • By G_M 27th Sep 16, 9:06 PM
    • 46,172 Posts
    • 55,887 Thanks
    G_M
    • #5
    • 27th Sep 16, 9:06 PM
    • #5
    • 27th Sep 16, 9:06 PM
    The gap between Exchange and Completion can be anything the parties agree, from same day to........ 10 years or more.

    Whilst 2 - 4 weeks is normal, longer time periods are common.

    So the question is, what do you mean by 'delayed'? 2 months? 6? A year? More?

    Obviously the longer this period, the harder to find a buyer who will agree.

    Many buyers rely on mortgages, and banks give a time-limit on their offers. If Completion does not take place within the time limit, the buyer has to re-apply, with all the risk of rejection.
    • CaPPsiE
    • By CaPPsiE 27th Sep 16, 10:56 PM
    • 103 Posts
    • 9 Thanks
    CaPPsiE
    • #6
    • 27th Sep 16, 10:56 PM
    • #6
    • 27th Sep 16, 10:56 PM
    Thanks for all the replies. By delayed, I mean 10-15 years. I was approached by the buyer who specialises in these purchases. There's no onward chain either. Once the buyer takes legal ownership of the property contractually, they assume control of the insurance, ground rent, repairs etc

    I believe HouseBuyer77 nailed it as there is little risk to me. From the outset, the buyer will sink capital into in for repairs so stands to lose that if there are any issues. It gets a bit complicated, but I believe I will go for it.

    Thanks
    Adam.
    Thanks,
    Adam.
    • G_M
    • By G_M 27th Sep 16, 11:26 PM
    • 46,172 Posts
    • 55,887 Thanks
    G_M
    • #7
    • 27th Sep 16, 11:26 PM
    • #7
    • 27th Sep 16, 11:26 PM
    You are mad.

    Good luck with that. Please let us know what happens in 15 years........

    Note:
    Once the buyer takes legal ownership of the property contractually,......
    You realise this happens at Completion don't you?

    I'd also be fascinated to know what price you are agreeing.
    Last edited by G_M; 27-09-2016 at 11:28 PM.
    • CaPPsiE
    • By CaPPsiE 27th Sep 16, 11:41 PM
    • 103 Posts
    • 9 Thanks
    CaPPsiE
    • #8
    • 27th Sep 16, 11:41 PM
    • #8
    • 27th Sep 16, 11:41 PM
    You are mad.

    Good luck with that. Please let us know what happens in 15 years........

    Note:
    You realise this happens at Completion don't you?

    I'd also be fascinated to know what price you are agreeing.
    Originally posted by G_M
    Why am I mad? The property is in negative equity plus there is a loan on top. The buyer is taking all of that off my hands and in return - eventually - gaining a property.

    The price agreed would allow me to walk away break even - the place isn't worth what I paid for it and needs work doing.

    Were I in a position to sell it at profit, I would, but I have other things going on.

    A.
    Thanks,
    Adam.
    • G_M
    • By G_M 28th Sep 16, 12:05 AM
    • 46,172 Posts
    • 55,887 Thanks
    G_M
    • #9
    • 28th Sep 16, 12:05 AM
    • #9
    • 28th Sep 16, 12:05 AM
    I get very frustrated when posters ask for advice and then drip feed information in response to replies. So can't be bothered to expand on my comments - off to expand in bed instead.
    • eddddy
    • By eddddy 28th Sep 16, 6:54 AM
    • 7,250 Posts
    • 7,205 Thanks
    eddddy
    This scheme is a million miles away from what your initial question implied.

    The potential risks might be massive.

    I'm guessing you 'hand over' your property to somebody between exchange and completion - and they do whatever they like with it. Probably renting it out.

    So just one example risk:

    You will be breaching the terms of your mortgage. The bank might call in the loan. If you cannot pay back the loan, the bank might repossess.

    Your buyer might then sue you for breach of contract and you have to pay them 10 years rent plus other damages.

    The list of risks could be endless. Show the contract to your solicitor.



    Edit to add...

    If these were good schemes, mortgage lenders would be promoting them, reputable companies would be offering them, etc. What do you knpw about the person/company you're talking to? Are they reputable, or are they a bunch of dodgy shysters? (I know what my guess is.)
    Last edited by eddddy; 28-09-2016 at 7:04 AM.
    • mrginge
    • By mrginge 28th Sep 16, 7:39 AM
    • 4,696 Posts
    • 8,936 Thanks
    mrginge
    This is a scam, simple as.
    This 'buyer' will disappear as soon as they have extracted as much income as they can from your property.
    • davidmcn
    • By davidmcn 28th Sep 16, 8:28 AM
    • 9,303 Posts
    • 9,922 Thanks
    davidmcn
    The property is in negative equity plus there is a loan on top. The buyer is taking all of that off my hands
    Originally posted by CaPPsiE
    No, they're not. If you don't believe us, get a solicitor to point and laugh at the contract on your behalf.
    • Rain Shadow
    • By Rain Shadow 28th Sep 16, 9:06 AM
    • 1,672 Posts
    • 3,046 Thanks
    Rain Shadow
    Why am I mad? The property is in negative equity plus there is a loan on top. The buyer is taking all of that off my hands and in return - eventually - gaining a property.

    The price agreed would allow me to walk away break even - the place isn't worth what I paid for it and needs work doing.

    Were I in a position to sell it at profit, I would, but I have other things going on.

    A.
    Originally posted by CaPPsiE

    I'm sure there is a saying about things looking too good to be true.
    • HouseBuyer77
    • By HouseBuyer77 28th Sep 16, 9:39 AM
    • 927 Posts
    • 913 Thanks
    HouseBuyer77
    So the 'buyer' is taking possession of the house immediately, taking over all responsibility and presumably renting it out. Then 10-15 years later buying it off you for a price agreed today?

    Obviously I can't see the contract but I doubt you'll actually have 'exchanged' in the sense used in house purchases with a completion date 15 years hence.

    So really your question is not about delayed completion, it's about a scheme designed to help you with negative equity by allowing a third party to use your property for income. You need to consider this very very carefully. As above were such schemes a legtimate, good way, to deal with negative equity they'd be far more common and well known.
    • Mrs Imp
    • By Mrs Imp 28th Sep 16, 10:22 AM
    • 971 Posts
    • 1,579 Thanks
    Mrs Imp
    https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/problems-with-selling-your-home-delayed-completion-and-lease-options-contracts/
    Have a read, especially this bit:
    It's important you know that there's no government regulation of these schemes. If you move out, you won't have much protection if things go wrong. For example, if the buyer stops making payments to your mortgage lender, you'll still be responsible for paying the mortgage. You could lose your home if you can't find the money.

    Why not look at renting it out yourself and moving in to somewhere smaller? Or if you have a spare room get a lodger.
    • danslenoir
    • By danslenoir 28th Sep 16, 10:57 AM
    • 218 Posts
    • 260 Thanks
    danslenoir
    This idea is perhaps the craziest I've ever read on here.

    You are mad, OP.
    • jamesgough
    • By jamesgough 11th Aug 18, 1:32 PM
    • 2 Posts
    • 0 Thanks
    jamesgough
    Makes sense to me.
    It's just a creative way at working with finance. Do you think all business deals are carried out conventionally?

    If the vendor and seller are both happy, where is the problem?

    Do you have better solutions to his predicament?
    • Doozergirl
    • By Doozergirl 11th Aug 18, 1:41 PM
    • 26,116 Posts
    • 70,538 Thanks
    Doozergirl
    This is a 2 year old post. Surely there's something a bit more recent that might pique one's interest?

    The OP has hopefully solved their own predicament.
    Last edited by Doozergirl; 11-08-2018 at 1:43 PM.
    Everything that is supposed to be in heaven is already here on earth.
    • AnotherJoe
    • By AnotherJoe 11th Aug 18, 2:51 PM
    • 11,842 Posts
    • 13,796 Thanks
    AnotherJoe
    It's just a creative way at working with finance. Do you think all business deals are carried out conventionally?

    If the vendor and seller are both happy, where is the problem?

    Do you have better solutions to his predicament?
    Originally posted by jamesgough
    Do you have a better solution than waking up a near two year old thread?
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