Risks of long period between exchange and completion

[BasementIdeas]

Hi

Our vendors are pushing for a long (2 month) period between exchange and completion

I’ve asked for advise from our solicitors as to the risks inherent in this. My understanding is that the biggest risk is a material change in circumstances (eg redundancy) leading to our mortgage offer being withdrawn. What would happen if our mortgage offer is withdrawn between exchange and completion, meaning we were no longer able to complete?

Thanks

You would lose your 10% deposit :-(

You would lose your deposit if you couldn't get another mortgage product.

I have had a 3 week exchange to completion period and I wouldn't want to go much longer than that. Its a relief to exchange but I was on edge the whole time incase something happened.

I would not have more than a month. I suppose you could write into the contract if you lost a job/mortgage/whatever else you would not be able to complete and the deposit would need to be returned.

It can be as long as both parties agree to (within reason).

We exchanged on our house in May but didn't complete and move out until 28th Sept but the buyer knew this when we agreed to the sale and they were happy to wait.
The reason was that we had to exchange ASAP to be able to reserve our newbuild (which won't be completed until next year) but couldn't move into our temporary accommodation (my late parents house) until the end of September.

@mayblossominapril

I would not have more than a month. I suppose you could write into the contract if you lost a job/mortgage/whatever else you would not be able to complete and the deposit would need to be returned.

that would be a non-binding contract.

so a non-contract.

I absolutely wouldn’t do it. Way too risky, it puts it all on you. If they need to exchange on their future house they can either break the chain or wait to exchange with you until down the line, and take the risk themselves.

Thanks all, just as I thought

For some reason, our vendors think we are being unreasonable as they want peace of mind of Xmas!

This is after the top of the chain unilaterally delaying completion by a month with no discussions as to the impact on everyone else. The whole thing is just leaving a really bad taste in my mouth

A few weeks of maybe 3 or 4 I would insist on but any more and it’s unnecessarily risky. It’s a balancing act of risk though, we had too short an exchange to completion date and the worse of the worst happened in that we had everything packed in storage and on way to sign and the seller pulled out! So I vowed I would never ever pack or prepare 1 single thing until I had exchanged in the future!