To ask buyers to cover costs of delayed house sale?

[AbuelaGetTheUmbrellas]

Would really appreciate advice on this. My husband and I sold our house STC at the end of last year. The house was up for auction. We sold it before the auction- buyers requested an extension on the exchange and completion date, which we agreed to. We exchanged a few weeks ago, and are due to complete tomorrow.

Buyers are now requesting a further 3 weeks extension on completion date as they have not secured their mortgage yet?! I think this is madness - they shouldn’t have looked at auction properties if they didn’t have the funds in place. They have risked their deposit by behaving this way. I’m not a Dick, so I’m happy to give them an extension rather than run off into the sunset with their deposit BUT I think they should cover the additional interest payments on our mortgage for the 3 week delay (it’s just under £2000). Is this a reasonable request? My husband is saying we should just absorb the cost ourselves!

Yes as agents
but not as an auction property

Because I suspect all this thread has done is caused an alright marital row tonight with the Op waving her phone showing this thread at her husband.

when in actual fact… should have referred to the professionals involved, which she seemed surprised as being an option “good idea”!

but I will bow out!

Op something similar happened to us. Give them the ten days and then start the action to keep their deposit.

@Whatislove82

You clearly can't read and have no clue what you're talking about!

Op I assume you have a chunky deposit from them? Follow your solicitor's advice and start the action to keep it. They are quite likely to keep dragging this out.

I am too baffled as to what What is love is talking about too......

Having moved quite a few times I honestly have no idea how they were able to exchange without all the financing in place. We had to supply all that to the solicitors who verified and then dealt with the bank to execute the sale. There were some cases recently of banks withdrawing offers between exchange and completion due to the interest rate rises but that is exceedingly rare.

We will see

not sold at auction
and asking for a 3 week delay is not out of the ordinary
and note the requirements “time needs to be of the essence” for the Op to be allowed to refuse extension and walk away with deposit.

She can ask ask for the £2k in interest (3 weeks?!)t but given the other thread of hers I posted on, this will result in a shit show between her and her husband

Are you in a chain?

With mortgage rates changing soo much over the past 6 months, I wonder if they have applied for a new mortgage product before completing?

We recently applied for a different mortgage as the rates had reduced significantly. We haven't exchanged yet and it hasn't caused us delays.

I would serve them. Then you will know if they are serious or just messing you around. They might miraculously sort everything out.

Good luck!

express-conveyancing.co.uk/what-happens-if-one-party-cant-complete-a-sale/

This represents what I had always thought happened when a sale is not completed after exchange, due to the breach if contract.

Ideally you need a supplemental agreement to formally vary the date. The consideration for this could be the £2k or more?

Service of a notice to complete means that you reserve your position and can terminate the contact and forfeit the deposit.after 10 workings days

You could also therefore build into the supplemental agreement that time is of the essence and they won't then get another 2 weeks. If they are not ready on the revised completion date turn the contract immediately terminates

The vast majority of sales don't ask for an extension after they have already exchanged @Whatislove82 . What on earth makes you think that!

Don't think about being a nice guy or a dick

None of that matters

Follow the contract, and solicitors advice

Don't be soft.

I reckon if they struggled to get a mortgage, they are struggling even more now that rates have gone up

Write it off, keep the deposit if the law allows, and move on

My understanding was that you can serve a notice of completion and this gives them a (non negotiable) 10 days to complete. If after that 10 working days you still do not complete, you get the 10% deposit. You can sue for damages to mitigate your financial loss but my understanding is that you could not get that AND the deposit, as otherwise you have benefitted twice.

Whatislove seems confused about the difference between exchange and completion - it us very common not to exchange on the preferred date for it, but it is really pretty rare not to complete on the date agreed in the exchanged contracts, as the penalties are significant.

Just do this. They are pissing about. What of their mortgage never materialises?

I would be concerned something has gone wrong actually.

@Whatislove82 also makes an idiot of themselves on threads, says they're bowing out but still stays around to annoy people further with their inane drivel

Do what your solicitor advises - and grill your solicitor on why exchange was permitted without proof of funds, as that should not have happened. Someone legal has dropped the ball there, and should be working very hard to get it sorted.

I agree with a PP. Whatislove is getting confused with regard to exchange where up until the day of exchange buyers and sellers can drop out/change their minds etc and there are no real penalties bar a few legal costs or maybe a mortgage application fee.

AFTER exchange that is much more serious. People DONT do it all of the time. They do it very very rarely beause the penalties are so severe.

I too am not sure why they are making such a big song and dance about this and at the same time making a bit of a twit of themselves.

It is for your solicitor to check they have a valid mortgage in place prior to exchange. If this offer has now been withdrawn it would need exceptional reasons such as fraud on behalf of the borrower or unemployment.
We are due to exchange in the next three weeks and we have had to put new finance in place. Our vendor has been shouty and threatened to pull out as the agent got the story wrong and told their client our mortgage was not approved.
We did sell a house once where completion didn't take place and the blighters had collected keys and moved in. They were withholding due to an internal door we had replaced! We served that notice of completion. They took it to the wire.

No one should be collecting keys if you havent yet completed. Sounds like a cock up if the keys were released to them before completion.

Clearly there’s been some legal mess up here. Buyers contractually have to complete on the date agreed at exchange. If they don’t they are in breach of contract. As a goodwill gesture you could extend the completion date but if they continue to mess you about you could retain the deposit and put it back on the market.

I really don’t understand how the heck you’ve exchanged without either solicitor on both sides checking that there’s a valid mortgage in place.

exchange shouldn’t be able to happen without proof of funds