My buyer is pushing me into rental, WWYD?

(47 Posts)
littlecrystal Wed 22-Jan-14 13:07:19

My buyer, who offered in Christmas period, informed me that he's rental expires in beg of March and it would be excellent to complete before then, but if not that's ok, he will wait. No dates agreed.

I had found a house to buy myself, and started legal proceedings, but then withdrew my offer after found out that this house is next to a substation.

I told the EA that I will consider going into rental but I want several more weeks to find a new house.

In the meantime the buyer has applied for mortgage but there is no sight of survey booked yet.

Today I received a call for the EA saying that the buyer extended his rent until beg of April, can I complete by then? After that he will have to sign 6 months rent agreement.

I said I will try my best, but at the same time realized this leaves me no time to find a new house and complete, so it is a definite move to a rental!

I have 2 kids so it ain't be easy and I tried to avoid it.

I don't want to let the buyer down, but his timescale does not leave me any air for breathing.

WWYD?

MrsJohnDeere Wed 22-Jan-14 13:13:03

Can you afford to lose this buyer? Would you sell again easily if you pulled out of this sale.

If it was me I'd move heaven and earth to find a house to buy ASAP, but we were on the market for months before getting an offer.

littlecrystal Wed 22-Jan-14 13:19:02

This is my buyer No. 4 (I lost 3 due to no houses to buy). Every buyer I found was super quick (London market). I could easily find another. But my EA is getting impatient with me, as it has been a year since I am unable to find (or lost out in bidding wars, for that mattter).

Yes going into rental and paying mortgage redemption fee will cos
t us a lot, but what I cannot truly afford is buying a wrong house again.
The current once is wrong.

The only one available for buying is with a triangular corner garden and a substation at the back of the garden, and I really don't feel compromising on this.

lollydollydrop Wed 22-Jan-14 13:26:58

Will he not let you rent from him till you find a place to buy, or why not rent yourself in the meantime?

littlecrystal Wed 22-Jan-14 13:30:36

Maybe because it will leave me 10k out of the pocket?
Anyway I am more concerned with his inflexibility while he told me he was pretty flexible in the beginning...

Going into rental can be a good thing. Yes there is faff of moving and mortgage redemption fees, but overall once you are the buyer who is not in a chain and thus able to complete quickly, you will find yourself in a better negotiating position when you do find the house you like.

That way you can take your time to look round for the right house for you. After the first 6 months the rental agreements are usually on a month to month basis anyway so I think your buyer may be bluffing

Choice between a rental versus house with a garden you don't like and a substation at the bottom of the garden....?

allmycats Wed 22-Jan-14 13:34:23

Go for the rental yourself and then give yourself time to choose your 'ideal' house. The buyer is not being unreasonable in expecting to
complete within 4/5 months.

PrimalLass Wed 22-Jan-14 13:39:31

We were able to agree a 6-month 'stay' on the mortgage redemption fee.

I'd go into rental, and we were just about to but found a house at the last minute. But here in Scotland there is not usually a chain - you agree a date when you accept an offer and it is the seller's problem if they don't have a house to move to.

WhoNickedMyName Wed 22-Jan-14 13:42:08

Your buyer is being totally reasonable, and in fact it's you who is incredibly unreasonable.

It is perfectly normal to go from offer to completion within 4/5 months and quite often it takes less time than that. He's been extremely kind to agree to rent for another month.

You've lost 3 buyers already, I'm not surprised your estate agent is getting pissed off with you. If you're serious about moving you need to move into a rental property, now, so you can take your sweet time looking for somewhere you want to buy.

orangepudding Wed 22-Jan-14 13:46:52

The problem with going in to rental is that you won't be a priority for agents selling houses. Buyers on the books with a buyer already will take priority, if houses move quickly where you are you may miss out on places that don't even make it on to the general market.

littlecrystal Wed 22-Jan-14 13:56:19

PrimalLass how did you managed to agree on redemption fee?? My bank (Woolwich) allows only 30 days portable window (it used to be 90 days I think). If I manage to extend, that would be excellent, but I doubt!

orangepudding sorry but I am not sure what you do you mean by not being a priority for selling agents if I was in rental?

To everyone else, where do you see 4-5 months to completion? It is barely 3 months, and if I did find a house, and if my vendor was in a chain, you cannot predict how many months it could take. It could take half a year. And the my FTB is the least person to dictate his timetable when everyone else is in a chain.
I do not see it unreasonable.

PrimalLass Wed 22-Jan-14 14:00:37

We're with Britannia - they said 6 months was fine.

PrimalLass Wed 22-Jan-14 14:01:35

"Porting your mortgage
If you want to move house and have a Britannia mortgage that’s still in the fixed rate*, discounted* or capped* period, you can choose to transfer your mortgage product to the new property. This is called porting*.

Any Early Repayment Charges* (ERCs) that apply to your existing mortgage will be refunded, providing you complete a subsequent Britannia mortgage for the same amount or more on the same product within 6 months of redemption*. If completion* of the new mortgage and redemption of the existing one don't occur on the same day, ERCs are charged and then refunded on completion of the new Britannia mortgage"

Stokey Wed 22-Jan-14 14:12:15

It's a seller's market - you've found 4 buyers already. If you don't want to go to rental I'd stay put.

Honestly by the time you find somewhere, prices would have probably gone up again & your buyer will be getting a bargain, or you may want to renegotiate.

A friend just made £180k more than he would have had he sold in summer 2012, this market is insane.

LondonGirl83 Wed 22-Jan-14 14:26:51

The OPs buyer has only been waiting since Christmas so just 1 month. I think if you were upfront about needing time, you should call his bluff.

London is a tough place to buy or sell. I wouldn't get off the property ladder and go into rental for any reason as if the market moves significantly (as it has been) you could end up priced out. In London, I would definitely say wait until you've found what you want. In this market, you are likely to panic buy if you see prices increasing and then what was the point of moving at all.

It might be selfish but you have take care of yourself and your family.

lalamumto3 Wed 22-Jan-14 14:30:41

Hi I totally agree with London. I would not dream of selling without purchasing at the same time in the current London market, you could end up really out of pocket. Also it will really add to your own stress.

You really need to put yourself and your family first.

allmycats Wed 22-Jan-14 14:38:08

We are seeing 4 months etc as they buyer making the offer in December and the OP herself say that he is willing to stay in his rental 'to the beg. of April' The OP is saying that she cannot be out by the end of March.
If I was your estate agent I would be telling you to find another agent.

Beastofburden Wed 22-Jan-14 14:43:12

Given this is London I wouldnt personally risk being out of the market for six months and going into rental. It might be OK in slower moving markets but not in London. Let your buyer take the risk of that.

littlecrystal Wed 22-Jan-14 14:44:21

Actually official offer acceptance was circulated on 4th Jan. So less than 3 weeks as of today. The buyer's rent is ending 2nd of April. I did not expect this pressure.

EasterHoliday Wed 22-Jan-14 14:47:58

with London prices moving at the rate they are, you'd be crackers to go into rental. you could be priced out of your target market within 6 months.
Alternatively you could make the mistake I made, and exchange and wait for completion - I did that in 2007 and probably cost myself £25k in 6 mths... (tant pis, the buyer was lovely, and very patient with me).

littlecrystal Wed 22-Jan-14 14:52:30

EasterHoliday oh dear, how did it happen?

AngryFeet Wed 22-Jan-14 14:52:40

It is a pain for you but there is no option but to either do as he asks or risk losing yet another buyer. We pressured our buyers to move into rental as our mortgage offer was running out and we needed to leave where we were living. Luckily they were amenable. He is just looking out for interests as are you. Thats the fun of house buying and selling. We managed to get 6 weeks between offer and completion so think yourself lucky!

shoom Wed 22-Jan-14 14:53:37

Take your house off the market.
Find something you want to buy.
Then put your house on the market.

AngryFeet Wed 22-Jan-14 14:53:38

Looking out for his interests

EasterHoliday Wed 22-Jan-14 14:59:25

I got a buyer very quickly but my purchase was riddled with problems that needed fixing. Exchanged in Nov 2012 but completion wasn't until July 2007 - the market had moved massively by then (though in fairness they didn't charge any more on the purchase so I guess it was a neutral). My mother moved into rental for 18 months when she downsized. In that time, her 5 bed house translated to roughly the 3 bed flat with very little to spare. In a fast moving market, only exchange simultaneously.

Viviennemary Wed 22-Jan-14 15:09:49

I think the buyer is being more than reasonable in waiting this length of time. But if prices are going up in your area then I can see that you would not be keen to move into rented and risk prices going up quickly. There isn't an easy answer. But something is wrong if you've already lost four buyers.

Your house is either for sale or it isn't. I wouldn't put up with being in a forever chain. I'd find another house to buy which we did with this house because of somebody first saying no problem to move and then changing their minds.

littlecrystal Wed 22-Jan-14 15:30:37

shoom you would not believe but the area I am looking in lots of houses are often sold even before going on the market.
Buyer No. 1 - I was being too picky (in the retrospective) and so did not find a house
Buyer No. 2 - unexpected problems with my mortgage, lack of mortgage funds (in the retrospective - very bad mortgage advisor), pulled out altogether and decided not too sell until fix my problems with mortgage
Buyer No. 3 - my EA encouraged me to go back on the market, saying you will get higher price. Fixed my mortgage. Lost out in 1 bidding war. Generally low stock before Christmas.
Buyer No. 4 - it is been less than 3 weeks and he is dictating the timetable. I always said to EA, allow me to look for 1-2 months, house market should pick up in January and I will go into rental otherwise. 2 months+ to complete if I am selling and buying is not enough in any case.

vj32 Wed 22-Jan-14 15:47:16

It doesn't sound like you really want to move.

We had to move as we had run out of space in our house, and by the time we accepted an offer, I was pregnant with another DC who certainly wouldn't fit in the house. Despite this being in early summer, lots of houses we wanted available last year etc, nothing in our area came up. But we had to go so bought a compromise house - bigger house but worse postcode, still good schools but not the one we really wanted to be in catchment for etc. It has worked out so well so far I can't really believe it. We've now been in three months, having loads of repairs etc done which at 7+ months pregnant would think would drive me mad, but it isn't.

If there is a big enough push, you will move and it can be a good thing, like in our case. If there isn't a big enough push or pull to a new place then you won't move, and you are really wasting everyone else's time. I think you need to work out what you really want.

littlecrystal Wed 22-Jan-14 15:54:00

I do want to move but the estate I am looking at is only about 250 houses, and they don't sell very often. My EA knows this very well.
Yes, I was being too picky in the beginning as it was easy start-off, and then got riddled with issues.
Another mistake that I made, was to try and work out the best offer based on comparable recently sold prices, but I did not took into account that prices started rising quicker then I thought.
I am now ready to offer what it takes, but it is just no houses on the estate, apart from one with the substation at the back of the garden.

littlecrystal Wed 22-Jan-14 15:55:46

Oh and I feel that

littlecrystal Wed 22-Jan-14 15:58:00

Stupid phone.
I feel that I made a massive mistake buying my current house, and I am really panicky buyer trying to avoid a similar mistake again.

Teeb Wed 22-Jan-14 16:05:35

Have you sent flyers out to these 250 houses? If you know where you want to be, and only there will do, then you really need to be super proactive about making it happen.

Stokey Wed 22-Jan-14 16:06:46

Sounds like you should pull out of the sale crystal. No rush in London market at the moment anyway - impossible to predict how long the "bubble" will last.
You have such a specific area that you want to live in, so I would wait and find somewhere first. The only issue is they may not accept your offer if you don't have a buyer but you can give anecdotal evidence of how easily you found a buyer last time.

Have you thought about flyering houses in your chosen area? May be worth it since it is so small.

vj32 Wed 22-Jan-14 16:12:11

We wanted the same. Leafleted the small estate we wanted. Only response was from a slightly crazy old couple who wanted more than the house was worth despite the fact that their brick built porch contravened the planning permission they had.

So we had to look elsewhere. Now 7 months on there has still not been a suitable house on the market in the area we originally wanted, despite being more than 10 for sale in the previous 2 years. Sometimes you are just unlucky with the timing of things.

If you really want that area then you need to accept you are probably going into rented and take a financial hit because there is no guarantee that in a few months the right house could come up. Even if you lose this buyer you could have the same problem again next time.

Orlea Wed 22-Jan-14 16:14:01

I'm not sure about him having to sign up for another 6 months rent, unless he's leaving his current rental and moving to a new one. My limited renting experience is all in Scotland so this may be totally irrelevant, but once a 6-month short assured tenancy expires, the tenant usually goes onto a rolling monthly contract which can be ended at any time by giving a month's notice in writing on either side.

So unless it is totally different in England, or his landlord is insisting on a fixed term contract, then surely he could be more flexible re dates?

No way would I risk renting and finding somewhere to buy from there in London, prices are rising too fast and I've seen too many friends priced further and further away from the area they want to be in by doing this. Added to which you have all the hassle, upheaval and cost of moving twice.

littlecrystal Wed 22-Jan-14 16:15:51

I took flyers twice to the part of the estate (the ones I thought looked nicer), no replies both times. Perhaps need to try again. As I said these houses fly off the shelf. If I do not have a buyer, I am zero in their eyes. I need to be under offer.

Teeb Wed 22-Jan-14 16:25:22

I understand how we look out for our own interests in house buying and selling, but you are asking this buyer (and three before him) to work to your timetable with nothing else to go on. How long do you believe is reasonable to keep him waiting before completion? And what happens if within that time frame no suitably nice house from this single estate comes up for sale that you are the highest bidder for?

LondonGirl83 Wed 22-Jan-14 16:46:26

Don't take your house off the market. With up to 17 buyers coming to open day viewings, if you aren't at least under offer when you submit your sealed bid, you won't stand a chance of having your offer accepted.

I know people who have been in a chain for more than year. If its the place your buyer really wants, they will wait. Your estate agent just wants their commission so they can move on so keep a clear head. Its a sellers market and trust me the person you are buying from will know that!

MinesAPintOfTea Wed 22-Jan-14 16:59:18

If its so competitive surely you would be best being a chain-free buyer? But if leafleting isn't getting you anywhere and there's nothing on the market then I think you need to accept moving into rental, losing your buyer or compromising on location.

These are your only real options.

littlecrystal Wed 22-Jan-14 17:01:14

Thanks for encouragement Londogirl. I just came up with a couple of ideas. I will wait until buyer does survey (3 weeks?), if he is happy with the survey and if no house in sight for me, I may consider a quick completion and going into rental. Otherwise if he can prove he is in tied rent, I may offer him lets say 3k discount in order to cover half of 6 months rent and for him to wait until I complete. Though it is seller's market.

Spickle Wed 22-Jan-14 17:05:31

I wouldn't go into rental just to keep this buyer. If he is serious about buying your house, let him go into another rental if he has to vacate his current place. Why should you be pressured into moving out just to please him. Call his bluff - even if he withdraws his offer there is no guarantee that the next house he wants to purchase will complete in April anyway.

LondonGirl83 Wed 22-Jan-14 17:08:14

That's really fair. I suspect his real concern is that if you pull out of the sale, he might be priced out of the market or you could change your price on him.

It's really tough to buy and sell in London. We were moving within our own local area and it was still so time consuming and stressful.

oscarwilde Wed 22-Jan-14 17:18:41

10 weeks to complete and he hasn't even had a survey, nor have you had confirmation that he even has a mortgage in place. Not possible with london solicitors in my experience.
"It will not be possible to complete by 1 April 2014. Subject to confirmation that you have have finances in place, and completion of our chain, I am happy to accept 30 June as reasonable date for completion that we can all work towards".
Then and only then if it looks good, you can offer to exchange at an earlier date so you are acknowledging that you will move into rental property if you can't find anything.

PrimalLass Wed 22-Jan-14 18:56:50

I wouldn't go into rental just to keep this buyer. If he is serious about buying your house, let him go into another rental if he has to vacate his current place. Why should you be pressured into moving out just to please him.

I find this astonishing. If you put your house on the market surely youy buyer is entitled to think he will move into it within a reasonable time frame? Which in Scotland is 7-8 weeks. I cannot fathom all this chain nonsense.

MinesAPintOfTea Wed 22-Jan-14 20:53:14

There is a difference between a chain taking time to get all the checks done and a seller who doesn't seem keen to even start making offers once they have an offer in place. If he knows this I can see why he's putting pressure on you and hasn't done surveys yet.

shoom Thu 23-Jan-14 13:28:24

Er I do believe that an area can be very popular. Been there myself. You said that it's easier to find a buyer than a seller, and that you don't want to rent (the clue is in your thread title) so I said to wait.

If you are saying that there's nothing available that you want to buy, and that there aren't many anyway, then be honest with your buyer and say that it's an indefinite wait. Before they spend money. They may know they are the fourth potential buyer, so are trying to find out if you are serious.

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