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Exchange and Completion on the same day


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Hi,


We had found a chain free property in December and agreed a price, got mortgage offers approved so on by the beginning of Feb this year. However, we suddenly learnt in Feb that the seller is not actually chain free and he was looking to by as well. Although not very happy, we waited since then and last week the sellers solicitor came back saying that they are ready and would like to exchange asap but completion is on 28th of June. Our mortgage offers ends on 30th of June, and in case this moves to 1st of July we will be paying extra 12.5 K stamp duty even we manage to extend the offer. My solicitor proposed to do both exchange and sale on the same day because he is worried that in case something goes wrong for whatever reason, we need to give 10 working days notice, and this will move to July - which means no mortgage offer and extra stamp duty so on. and the chain is not keen to do it. We are at the bottom of the chain so we are buying without selling and in case we do not buy chain will probably collapse.

I cam getting tons of calls and emails from various people including agent we are buying but also others on the chain and this is really making me stressed as we have been waiting for months and the only reason we started the process was that we have been told that they were chain free in December in order to catch the end of March deadline.

I am not sure what kind of guarantee we can give to the chain to make sure that this happens in some way but I am open for creative ideas without taking the risk of this moving to July.

thanks

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It doesent sound much like "the chain" has any choice but to wait for you? The vendor got themselves in this mess by lying to you to begin with, sounds like if they had been more transparent they wouldnt be in this mess?

 

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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Hi 

Couple of points spring to mind.

1) Does the Estate Agents details or property brochure mention the property you wish to purchase as 'Chain free'? If so the agent has mis sold the property unless they can prove 'due diligence'.

2)The seller's solicitor wishes to exchange asap (Good news)? And complete on 28th June (within mortgage offer timeframe)?

So....

Why not exchange with completion on 28th June?

Ask your conveyancer to order your mortgage advance a day early, so its in their client account on July 27th so you are ready to go first thing on the 28th.

It will cost you an extra day in mortgage interest but for the peace of mind i think you'll agree its worth it in this case.

What happens if the sellers fail to complete and the mortgage advance is still in your conveyancer's account after the time scale of your mortgage offer? I'm not sure...but your conveyancer should be able to tell you as they are working on behalf of your mortgage company aswell as you. I have a feeling it doesnt matter, as its the mortgage offer that triggers the advance, so long as the advance is requested withing the mortgage offer letter timeframe. 

If your sellers fail to complete then yes...you may have to wait upto 10 days, but you can claim accomodation, mortgage costs, removal and storage costs and other out of pocket expenses as part of the notice to complete.

Can you claim the stamp duty payment? Im not sure...but if i were you I'd be asking your conveyancer for a definitive yes or no answer or finding someone who can, before you exchange.

Hope this helps abit. If your not comfortable with any of the answers you get to the questions i put to you then demand a completion by 20th July.

Conrad Paton

 

 

Conrad Paton

+44 7957 959851

conradpaton@yahoo.co.uk

https://www.linkedin.com/in/conrad-paton-424446110

 

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The main issue is that in case we exchange now and pay the deposit of 10% which is 70+K, and then for some reason we are asked to pay extra couple of days, we wont have money to pay the rest and we will fail to complete and lose the deposit. 

 

Is there any way, we can tell them that we are happy to cover their removal fees in case we change our mind ( which is their anxiety)? and do the exchange and completion on the same day?

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