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Original poster

Completion on notice

39 replies

Lelliebellieboo · 05/07/2021 14:25

I've mentioned on here before, we have agreed a sale of our house, and agreed to purchase another back in March. Our vendor said that they would move into rented so as not to break the chain as they didn't want to hold anything up. in the middle of June, we were told that the conveyancing was complete on the sale of our house, and the purchase of theirs and we were already to talk dates.

At this point, our vendor announced that they no longer wanted to rent, they had agreed to buy a new build. Obviously I'm furious because it's cost me £££ in stamp duty. However, we've now found out that the house isn't due for completion until September, so we've been told that the developer wants to exchange for completion on notice.

I'm livid because to me, this means that us and our buyers (we are a three-party chain) are essentially being asked to wait indefinitely. Am I in my rights to say that we want a guaranteed completion by the 30 September and we want to know it now? I'm so angry that their actions have caused me to miss out on the stamp duty break, and now there is a chance we could miss out on the reduced as well.

Our buyers mortgage offer expires in September as well, which is another reason why we need a confirmed date.

OP posts:
Ariela · 05/07/2021 14:56

Isn't there anything else you can buy?

Livingintheclouds · 05/07/2021 15:03

You can say whatever you like it doesn't mean they'll agree. But they may not want to lose you. Worth a try and you could also say you want them to pay the equivalent to the stamp duty saving if it goes beyond September. I'm not sure I'd trust a new build to be ready when the builder says.

Original poster
Lelliebellieboo · 05/07/2021 15:34

unfortunately there's absolutely nothing else physically on the market, and hasn't for months which is why they've reverted to a new build.

My gut is saying I'm happy to wait for this house as I really love it, but I want them to either confirm that they will be out by the end of September (go on holiday/stay with family, I really don't care!) or acknowledge that my offer drops by £3k post 01 October to account of the fact that them messing about and changing the chain at last minute has cost me thousands.

Our buyers are FTB so won't have to pay stamp duty, and I'm sure that the vendors will have their stamp duty paid by the developer, so I'm the only one being battered financially by their indecision.

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readytosell · 05/07/2021 15:42

As above, you can say whatever you like. But don't make ultimatums you won't stick to.

In normal times, I would absolutely say walk away and find something else. But as you're finding out, that's not an easy option at the moment. I'm in a different position of having a chain, but it still not being complete and no idea when it will. But I can't find anything else easily, so I'm just sitting tight. Same as if my buyer threatens to pull out, I'll tell them to go ahead - I'll soon sell to someone else quickly.

Completely understand how frustrating it must be, but this isn't a normal time with the housing market.

MarianneUnfaithful · 05/07/2021 16:01

Waiting is one thing.

Exchanging and then being forced to complete at an unspecified and potentially hugely far off date is another.

So I would say you will wait but not exchange until a completion date is specified.

If the builders were confident they would specify the date.

Suppose loads of new houses do come on to the market at the end of this month, or whenever, and at less inflated prices to take account of stamp duty. But you were locked into a contract dependent on a developer…

Of course asking to exchange but complete on notice actually takes the pressure off the developer. So they will proceed at a slow pace. They could wait a year, waiting for the price of wood, or steels, or bricks to fall…

Your vendors have behaved badly.

Gettingonabitnow · 05/07/2021 16:03

Just go with it for now - if you start issuing ultimatums they might say buzz off and will likely have a new buyer within a few weeks. I know it’s god awful, we are bearing the brunt of our chain too but it’s just an awful market at moment. X

SeasonFinale · 05/07/2021 16:06

Are you likely to lose your buyers? That would be the deciding factor for me.

Original poster
Lelliebellieboo · 05/07/2021 16:35

@SeasonFinale

Are you likely to lose your buyers? That would be the deciding factor for me.
honestly? I don't know. They threatened to pull out last week, but then they admitted the next day that there was nothing for them to go to either, so we are all essentially sitting ducks. I think they are basically pushing for a confirmed completion date as well as we were all ready to go.
OP posts:
Original poster
Lelliebellieboo · 05/07/2021 16:37

how does it normally work when the person at the top of the chain buys a new build? I know theoretically the whole chain has to fall into line, but surely asking everyone to hold on for an indefinitely amount of time is just crazy!

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SlipperySlope99 · 05/07/2021 18:02

When I sold my house, my purchasers were buying it to flip it and sell on, and the person I was buying my current house off, said she had secured her house- so 3 of us in the chain
She said we’d be all ready to go and move in by the Christmas, she didn’t tell us she was buying a new build.
She delayed and delayed - the house still wasn’t finished - she then admitted she was buying a new build and the builders kept putting dates back- eventually we all moved the end of February- very stressful with my buyers the threatening to pull out

Clettercletterthatsbetter · 06/07/2021 06:43

You can say no. When we bought a new build we had to complete on notice but, quite understandably, our buyers wanted more certainty. So we picked a date that was a bit later than the expected completion date of the new build (because they usually run over), and set that as the completion date. It turned out that our new house STILL wasn’t ready in time, so we had to store our stuff and stay with family for a week - not easy with a toddler and a 7 week old, but we made it work!

Flowers500 · 06/07/2021 16:07

WHAT that is so cheeky of them to even ask in my view. What position would you be in with your buyers, would they have to do the same? If you lost the buyers you’d be screwed, legally tied in to buy a house you didn’t have the money for? What if it takes 8 months and your perfect house comes on chainless next week?

I’d tell them I’m happy to wait for now but that they should be aware if anything else comes on the market you’ll be jumping unless they go into rental. And be aware that if anything like yours comes on the market, your buyers will jump.

MarianneUnfaithful · 06/07/2021 16:47

@Flowers500 Unless the OP has enough cash to cover the deposit for her purchase, the whole chain will have to exchange simultaneously as the deposit passes down.

That’s the issue. The whole chain would have paid a the deposit and be under contract until an indefinite completion date. It could be 9 months. Or more. If the developers thought completion is imminent they would set a date.

Flowers500 · 06/07/2021 17:09

@MarianneUnfaithful wow so just as outrageous as I thought! How could anybody agree? And OP’s buyers would be mad to agree

Original poster
Lelliebellieboo · 06/07/2021 17:25

This is exactly the thing - the only way I can see a resolution is if we all exchange and agree a completion on a certain date in September but the vendors take the next three months to figure out a contingency plan in case their house isn’t ready for them to move into. Because as you say, we would we (and our buyers) agree to an indefinite waiting period

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Flowers500 · 06/07/2021 17:32

@Lelliebellieboo

This is exactly the thing - the only way I can see a resolution is if we all exchange and agree a completion on a certain date in September but the vendors take the next three months to figure out a contingency plan in case their house isn’t ready for them to move into. Because as you say, we would we (and our buyers) agree to an indefinite waiting period
Yeah I suppose it's either (a) agree a date or (b) agree that they're ok with you walking off if anything else comes up for you, or you losing your sale if anything else comes up for your buyers.

If they are 100% set on their new build then they have to accept rental as a possibility. So unfair of them to try to put all the pressure and risk on you, and onto your buyers. I suppose the easy answer is that it doesn't work for your buyers, so it's either your way or they can't get their new build?

BlueMongoose · 06/07/2021 20:23

If they had a shred of decency they'd move into rented. The builders may say September but with things the way they are re materials and labour, I wouldn't put my shirt on it. And if it's not ready by then, what will you do then?

Original poster
Lelliebellieboo · 06/07/2021 21:03

They initially said they would rent but then claimed it was too hard because they have pets. My argument is if we agree a late sept completion date now (around the time that their house is due to be built), they’ve got 3 months to find somewhere as a contingency.

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Original poster
Lelliebellieboo · 06/07/2021 21:05

So they seem to have everything their own way - they get the house they want, the developer pays their stamp duty, and screw everyone else!

OP posts:
Original poster
Lelliebellieboo · 14/07/2021 11:35

So as an update, our sellers are refusing to agree to a confirmed completion date. They want everyone to exchange on notice which we legally cannot do because our buyers mortgage expires at the end of September.

So I'm locked in between a rock and a hard place. I could actually cry with stress.

OP posts:
LemonViolet · 14/07/2021 11:54

Well then the chain falls apart doesn’t it? It’s their choice. Either they set a completion date and deal with the possibility their purchase might not be ready, or you cannot buy their house.

I suppose you could still sell and you move into rented though? Whilst you look for your new home?

So sorry, it’s horribly stressful.

Original poster
Lelliebellieboo · 14/07/2021 12:18

Unfortunately as we have pets ourselves we’ll be up against the same situation that our vendors originally found themselves in so we can’t rent.

Our buyers are looking to find out if they can extend their mortgage

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missmarplesapprentice · 14/07/2021 12:49

We bought a new build and you cannot ask your buyers to wait this long and to complete on notice...Your vendors are being incredibly cheeky to ask you.
All they can ask for is plenty of notice to arrange a rental/staying with family.

I would say that you have to all agree to not exchange until a firm date is given (now or even in September) but is has to be fixed. Most developer's have a long stop date up to 6months after the date on the contract so things could just string on. I don't know of any chains who agree to this. Most new build purchasers who were in chains like us had to break them.

If you pull out they will lose their new build as builders give them tight timelines to complete things and losing the buyer sees many new build sales fall through so they will be under pressure to keep you.

I think they are being very naive to think they can call the shots and expect you all to wait.

Gettingonabitnow · 14/07/2021 13:02

@Lelliebellieboo trust me the worst scenario at the moment is renting, something we are facing. There is nothing out there and it is overinflated. Just hang onto your home until everything calms down, I wish we had x

Original poster
Lelliebellieboo · 14/07/2021 13:17

[quote Gettingonabitnow]@Lelliebellieboo trust me the worst scenario at the moment is renting, something we are facing. There is nothing out there and it is overinflated. Just hang onto your home until everything calms down, I wish we had x[/quote]
I'm not prepared to rent. Even if we could find something that accepts pets, we simply cant afford it. The costs of rental properties similar to our current house is about £800pm MORE than what we are paying on our mortgage so that would be insane.

I'm furious because we've not changed our position at all. Our vendors have. They said they were happy to rent, and that they would do whatever it took to make sure the sale happened. Yet five months on, when push comes to shove they are saying no. They were apparently told that it could cause the whole chain to collapse and their response was "well, so be it."

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