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Original poster

Seller wants to exchange three months before they can complete

87 replies

mullingitallover · 06/12/2022 18:15

Our seller does not want to complete until March 2023 as they would need to pay a mortgage rebate.

They are however pushing for an exchange of contracts before Christmas.

Weirdly they said they would complete before March, but only if we agreed to pay half of their mortgage rebate

Thoughts or advice please?

OP posts:
rainingsnoring · 08/12/2022 10:25

Absolutely not. You would be crazy to do this. Far too much could change or go wrong in the interim. The sellers sound very unreasonable suggesting you should pay some of their early redemption charge. They are probably also worried about house prices falling more in the next few months.

Tell your solicitor to push back against this. No exchange until two weeks before they are ready to complete. Do not agree to a compromise. If they want to exchange now, they need to complete in 2 weeks and pay their charge.

RedToothBrush · 08/12/2022 10:35

So they want to offload their risk onto you.

Hell no.

Why take on that burden.

If they want to move at a certain time, then they have to take the risk themselves. Especially if that time works for you anyway.

Don't tie yourselves up with their problem. Follow the legal advice you've been given.

Are they really going to go through the process of finding another buyer? Good luck to them finding one.

They are worried about pricing dropping and you changing your mind btw. That's why they want to tie you in at this point.

RedToothBrush · 08/12/2022 10:36

It's also why you are in a good position to tell them 'hahaha no. Are you nuts?'

anotheropinion · 08/12/2022 10:40

mullingitallover · 08/12/2022 09:49

@Reallybadidea our solicitor advises waiting

Our sellers agent now telling us their seller won't wait until March to exchange, it has to be by Christmas.

Surely this is on our seller ( not us) to suck up their mortgage penalty so we can all complete sooner??

We're willing to pay a couple of months wasted rent at our end to complete now to avoid the bigger potential risk/loss of anything unexpected happening between now and March

Your sellers agent is full of shit acting on behalf of the seller.

They're not going to find another buyer and get to exchange with them by March. There is no point in you taking on this risk for three months. If house prices, interest rates, or your employment changes, you would be over a barrel.

RenegadeMrs · 08/12/2022 10:44

Once you exchange they are legally obligated to sell to you, but things are choppy at the moment.

If you really love the house, and can afford to wait, could you negotiate a 5% deposit rather than a 10% deposit so it reduces the risk to you?

RenegadeMrs · 08/12/2022 10:47

Or even negotiate now to say that if you have to pull out due to change in circumstances (i.e. job loss) they won't keep your deposit. You are doing them a favor after all!

Wakk · 08/12/2022 10:47

I can't tell you how much of a no this would be for me.

No no no no no.

You've paid your solicitor for their expert advice and you should take it

EmmaAgain22 · 08/12/2022 10:49

I could have had a much bigger flat if I'd accepted a six month wait between exchange and completion.

I said no. Too many potential bills.

tootrueblue · 08/12/2022 10:51

mullingitallover · 08/12/2022 09:49

@Reallybadidea our solicitor advises waiting

Our sellers agent now telling us their seller won't wait until March to exchange, it has to be by Christmas.

Surely this is on our seller ( not us) to suck up their mortgage penalty so we can all complete sooner??

We're willing to pay a couple of months wasted rent at our end to complete now to avoid the bigger potential risk/loss of anything unexpected happening between now and March

Their solicitor is trying it on. If they had to find another buyer it would be after Christmas and they would also likely refuse to exchange early. There's too much risk on your part for no reason to exchange this early.
If they have an early redemption charge then they shouldn't have put the property on the market so early.
I had this scenario with my first purchase. We had our offer accepted in the August and then the vendor realised he was tied to his mortgage until February. We discussed at the estate agents office and all agreed to exchange the day after his mortgage tie in ended. We completed 5 days later. It never occurred to him to demand we exchanged before Christmas as he was the one complicating things.

thiccapricot · 08/12/2022 11:06

I would absolutely not do this.

Vermin · 08/12/2022 11:11

I’ve done it twice - as buyer and buyer / seller. No biggie at all. I’m n the first situation I can’t remember why - possibly simply as I was at bottom of a king chain and wanted to secure the flat. Next - was to suit my timing with a newborn. My buyer was buying for his dad who already had somewhere and my seller was divorcing and happy to remain in her home a bit longer. Suited us all. The insurance was minimal.

Vermin · 08/12/2022 11:12

I’d love all these people talking about “too much risk” to explain what that risk is beyond falling market (for which 3 months is not substantial).

Fragrantandfoolish · 08/12/2022 11:13

I’d consider this with legal advice, I’d be looking at putting a clause in that saga if they don’t complete by 2 march then they owe you a penantly and that is a daily charge and if they don’t complete by the 9th you’ve the right to pull out with no cost to you and they refund x costs to you…

MadeForThis · 08/12/2022 11:17

What if something happened to the house between exchange and completion? Who claims on their insurance? Messy.

anotheropinion · 08/12/2022 11:18

Vermin · 08/12/2022 11:12

I’d love all these people talking about “too much risk” to explain what that risk is beyond falling market (for which 3 months is not substantial).

If in those three months interest rates rise or one of you loses your job, your mortgage company may refuse to proceed with the previously agreed loan.

Since you have 10% deposit down for a normal house purchase at exchange, you may lose that. In return for nothing.

So for an average UK house, "that risk" is losing nearly £30,000.

Vermin · 08/12/2022 11:21

Mortgage rates will or won’t increase in that period anyway- if you exchange today and complete tomorrow, rates may go up on Monday. The only issue is ensuring the mortgage offer is firm and covers the period. You can’t insure against rising rates. Good point on job loss though (& this is what critical illness etc insurance covers. I had all appropriate cover so there was no risk on that score, and was on a fixed term contract anyway the first time).

AwkwardPaws27 · 08/12/2022 11:22

Vermin · 08/12/2022 11:12

I’d love all these people talking about “too much risk” to explain what that risk is beyond falling market (for which 3 months is not substantial).

I think its if anything goes wrong with the property, you are committed to buying and the vendors aren't under any obligation to fix it after exchange (I think - it might just be one of those things where chasing them for costs after is unlikely to be successful, like if they leavea liad of junk in the shed...)..

So for example, when we completed the toilet wasn't working; we had less than a fortnight between exchange and completion. The vendors weren't going to pay a plumber after exchanging, so they'd just been chucking buckets of water down it.

No biggie really, although it was the only loo, but a bigger issue like a leak under the bath or storm damage to the roof could result in some quite considerable damage if left unrepairable for 3 months.

Vermin · 08/12/2022 11:23

(& if OP doesn’t have all that in place, the cost of it is a negotiation with seller - just how much is their early redemption cost and what are they going to bring to the table to encourage OP to help them resolve their issue?)

MilkToastHoney · 08/12/2022 11:29

our solicitor advises waiting

I’d honestly take the advice of your solicitor.

Our sellers agent now telling us their seller won't wait until March to exchange, it has to be by Christmas.

Your solicitor needs to speak to the sellers solicitor. The sellers solicitor will know it’s an unreasonable request and should be telling their client that your solicitor has advised against this.

Tell the agent that you have been advised by your solicitor not to exchange this far in advance.

Surely this is on our seller ( not us) to suck up their mortgage penalty so we can all complete sooner??

Exactly! They’ve chosen to put their house on the market long before their penalty was up. Lots of people have to just suck up mortgage penalties as part of the moving cost.

Yabado · 08/12/2022 11:35

i wouldn’t
My son recently lost his mortgage because that solicitors withdrew the mortgage funds and by doing that they only had 28 days to complete and exchange -
if they didn’t do it within this time my son would lost his mortgage

The other side a HA were not ready and told my sons solicitors this previously but he still withdrew the money thinking if could still complete / exchange in time or my son coulc get an extension of the mortgage for a weeks

Obviously the bank wouldn’t extend the mortgage due to the rates rising so my son has hav to reapply for a new mortgage at a much higher rate

GasPanic · 08/12/2022 11:38

No I wouldn't.

Well, not unless they offered me a financial incentive to do so.

What is their redemption fee anyway ? Could it really be that much ? They should just take the penalty as a discount on the price. Unless it is more than say 2.5% of the house value then they are in the classic position of letting a relatively tiny amount of money drive a much larger transaction.

Plus, anyone who tries stuff on like this is likely to try and pull another load of random nonsense during the rest of the process.

mondaytosunday · 08/12/2022 11:40

I'd be happy to exchange sooner and have a two and a bit wait til completion. But would not agree to paying half their penalty just to complete sooner as you are in your rental til March anyway. If they want to complete sooner that's their problem - it shouldn't cost you for their convenience.
As long as you are happy to the risks, your mortgage company is ok with it and so on.

carefulcalculator · 08/12/2022 11:44

No no no no no no no.

Your solicitor - your legal adviser in this matter - has also said no.

You're a wally if you ignore your solicitor.

Wanderingoff · 08/12/2022 11:46

They’re not going to find another buyer and complete by March so you have the power here

Chimna · 08/12/2022 11:56

Tell them you're more than happy to exchange, with the stipulation that you complete within 28 days.