Buying a property from people who have already part-exchanged for a newly (as yet un)-built property

[lecce]

Viewed a lovely, very reasonably priced property today. 'Vendor' asked if we had been informed that there would be a delay (we hadn't) as they have already part-exchanged with a company who are building new homes. They expect to be in by Christmas but may not be as the house isn't yet built.

We are selling to a ftber who I doubt will want to wait that long. We could go into rented but this means uprooting two small dc twice, and then there is the cost. Tbh, it seems a little fairer if this couple would go into rented since they are the ones who are, in effect, 'causing' a delay. Surely they are limiting their market by insisting that people wait for an unspecified period of time.

We were wondering what their rights are. They don't actually own the house anymore. Does anyone know whether it would be possible for the company who do own it to tell them they have to go into rented after a specified period? Maybe they would meet some of the costs as they are the ones who haven't actually built the next house yet?

Does anyone know anything about this - I don't know anyone who has done similar and we are just wondering if we could end up waiting around for months on end.

We part ex'd our house when we bought one which was being built.
We did own the house til the day we completed on the new one, just like a normal sale. The only difference was we already knew what we were going to get for the house, and someone else was dealing with the offers etc.

I wouldn't imagine the house builder would make them move out - they will do the bare minimum, and the low price is often to ensure a prompt sale.

If you've got a FTB, who is presumably already in rented accommodation, or living with parents, I'd think it would make sense for them to wait? Yes, it may take a while, but you have a pretty guaranteed, short, chain which is worth quite a bit. Just think how long the chain could be if the house you were buying were upsizing, and their vendors were upsizing .....

We have been in this situation twice, we just moved at the time stipulated by the vendor because of when their house would be ready.

What does your buyer want? Do they want to be in fast?

We uprooted our 2 children, sold & moved into a hotel for 3 weeks as we couldn't get our completion dates to match. They were 3& 6 at the time.

In the grand scheme of house selling waiting till December to complete doesn't sound bad.

We sold November & moved in March.

Nothing to stop you making your offer subject to them renting.

Or walk away. As a FTB i wouldn't be prepared to wait that long, and if the house hasn't even been built yet then it is bound to go over schedule.

Surely a first time buyer expects a chain though?

I sold to a first time buyer and they waited.

Personally if I had part-exchanged my property there would be no way I would go into rented, I would rather have no buyer, move into my nice new house and leave the selling down to the builder.

If you love the house ask your buyer about time scales to see what they are prepared to do.

We were in this position. They wanted to exchange as planned and have an open-ended completion. Er, that will be a no. Especially as we were cash buyers. They gave in.

We're in the process of buying a house that's been part exchanged. The previous owners wouldn't even let anyone see the property at all until they'd completed and moved in to their new build.

I agree with fizzylemonade that there's no incentive for a part exchanger to move into rented. They're selling to the builder, and there's no reason why they'd care if the builder then sells at all, never mind quickly.

Ask your buyer. Tell them one of the houses you've looked at isn't available until Christmas and you'd like to know what timescales they were looking at, and if they have any constraints.

They might be happy to wait. And if they're not then you know and can decide whether to wait for the house or keep your buyer.

I have part-exchanged my house because I am buying a new-build. It is ready, so will complete quite quickly. However, there is no way I would let anyone dictate to me that I should move out when it suits them, that is the point of part-exchanging...you get the benefit of a hassle-free move, whether someone has bought your house or not.

What Barbeasty said - it will depend on your buyer's mortgage situation. If they have an "agreement in principal" already in place, then that will have a time-limit on it - they are usually for six months but sometimes only three. Given the financial outlook at the mo, I would not expect any buyers to allow this period to lapse and re-apply, so you will lose your buyers if you keep them waiting too long.