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Original poster

Sellers pressuring me to exchange 3 months before completion

30 replies

Kaltenzahn · 23/05/2024 15:36

I'm buying a house, had my offer accepted at guide price in mid April. I'm a FTB and sellers aren't in a chain (but are moving abroad). I expressed that I was very keen to move in as soon as possible and the sellers said they would be able to move after the school term ends, which I was happy with.

After we progressed a bit the sellers then said they aren't looking at completion until the start of September. This is a pain but not the end of the world however the estate agent is now chasing me to exchange, saying the sellers are very anxious to progress ASAP and are concerned about the lack of progress. I only got my survey back on Tuesday!

I'm definitely not exchanging until I've had some additional checks done following the survey but I really don't like the idea of exchanging then waiting for 3 months, although I can't quite place why (although I would much prefer my 10% deposit to be in my 5.2% interest savings account than sat with my solicitors).

Is this normal? It would be different if I was the one insisting on a delayed completion but I'm finding it very frustrating being pestered by the estate agent when I'm desperate to move but the sellers won't be in a position to do so for over three months.

OP posts:
Buyingahouse2024 · 23/05/2024 15:40

The only thing I can think it's for your sellers it's a done deal then and costly to back out of it should you change your mind. We've been due to exchange since yesterday and our buyer is not replying...but did suggest a move in date of a week today so after this I don't really blame your sellers but obviously you do what you feel comfortable with. Especially if the survey has only just come back

OhFensa · 23/05/2024 15:40

Your timeline so far is matching mine. We haven't even started talking about exchange yet. Your vendors are being extremely unreasonable.

mightymam · 23/05/2024 15:40

Any sensible solicitor/bank will refuse this request. It's madness.

Scampuss · 23/05/2024 15:42

Far too risky.

And don't forget you need to insure the house you're buying between exchange and completion.

TheCryingTheBitchAndTheFloordrobe · 23/05/2024 15:42

Tell them if they want to exchange so early then they are going to need to move the completion date forward.

KievLoverTwo · 23/05/2024 15:44

They can move into an air b and b and bring the completion date forward if they want the security of having the money in their bank far in advance of needing to move abroad.

Don’t let them take advantage of you.

Mildura · 23/05/2024 15:47

mightymam · 23/05/2024 15:40

Any sensible solicitor/bank will refuse this request. It's madness.

Why?
I deal with plenty of transactions that have 6 -12 weeks between exchanging and completing.
Not had a bank query it yet.

KievLoverTwo · 23/05/2024 15:49

And to those more experienced: don’t banks start charging you the interest on the mortgage from exchange?

So if interest is about 2/3rds of the monthly payment, OP would be paying 2/3rds of the mortgage every month whilst not living there?

Apologies if I am getting this wrong.

qwertyqwertyqwertyqwerty · 23/05/2024 15:51

I would ask them to move completion earlier.

Talk to your solicitor, but it seems a long wait.

mightymam · 23/05/2024 15:53

@Mildura

Because it's far too risky for the buyer- anything could happen between exchange and completion- loss of job, ill health, death, etc. material changes that would impact the mortgage and banks don't want to deal with that. Our mortgage offer had a clause that completion must take place within a week of exchange. Every lender is different but I'd be surprised if any one of them allowed completion to take place so far into the future.

caringcarer · 23/05/2024 15:59

TheCryingTheBitchAndTheFloordrobe · 23/05/2024 15:42

Tell them if they want to exchange so early then they are going to need to move the completion date forward.

This. They want their cake and eat it too. Exchange is often 1-2 weeks before completion. Be firm.

Mildura · 23/05/2024 16:01

mightymam · 23/05/2024 15:53

@Mildura

Because it's far too risky for the buyer- anything could happen between exchange and completion- loss of job, ill health, death, etc. material changes that would impact the mortgage and banks don't want to deal with that. Our mortgage offer had a clause that completion must take place within a week of exchange. Every lender is different but I'd be surprised if any one of them allowed completion to take place so far into the future.

I've never seen a clause like that, sounds quite unusual.

12 weeks is rare, but by no means unheard of.

2 - 4 weeks far more typical.

Three recent transactions I'm dealing with:

exchange: 23.04.24 completion: 25.07.24
exchange: 26.04.24 completion: 27.06.24
exchange: 02.05.24 completion: 21.06.24

Mortgages involved in all 3.

Mildura · 23/05/2024 16:03

KievLoverTwo · 23/05/2024 15:49

And to those more experienced: don’t banks start charging you the interest on the mortgage from exchange?

So if interest is about 2/3rds of the monthly payment, OP would be paying 2/3rds of the mortgage every month whilst not living there?

Apologies if I am getting this wrong.

No, you only start paying interest on the mortgage after the funds have been drawn down from the lender, which happens at completion, not exchange.

carmexmum · 23/05/2024 16:06

We exchanged 3 months before completion as the property had tenants in it so their 3 months notice was given on the day of exchange. We agreed to this before hand. Both parties were able to relax knowing the sale would complete but didn't want to drag out exchanging to prolong the process/uncertainty.
Your sellers probably want to relax knowing the sale is happening and you wont pull out before they need to move. Make sure you are happy with everything before you exchange and dont be pressured but I dont think this is anything crazy.

Saschka · 23/05/2024 16:11

A previous seller tried to do this to us - we were ready to exchange by first week of November, she said she didn’t want to complete until some time around Easter because she didn’t want to empty her loft until after new year (by which time our mortgage offer would have expired, our offer had been accepted the previous August). She basically didn’t want to move out. We pulled out, she accepted another offer, and six months later that offer still hasn’t progressed - in fact if you are buying in SE24 and her name is Jane, it might be the same fucking woman.

If your seller changes their mind in three months’ time, all they will be out is your conveyancing costs. You will be responsible for insuring the property, and if they drag their feet and you want to pull out yourselves, you won’t be able to without losing your deposit. The risk is all on you.

CheeseyOnionPie · 23/05/2024 16:11

Not normal at all - do not agree to this. You exchange and complete in very short order. Once you exchange you are on the hook to buy that house and can lose the 10% deposit if you pull out for ANY reason. You need time to complete all the checks and for your solicitor to do their job too. If they want to bring the exchange date nearer then the completion date has to come forward too and they need to move out. Massively cheeky of them trying to have their cake and eat it.

DrySherry · 23/05/2024 16:16

No this is not a good idea, you are being bullied into a weak position. Tell them your happy to exchange as soon as possible - but completion would need to happen within 14 days.

Cotswoldbee · 23/05/2024 16:18

We exchanged 5-months prior to completion .
We were selling but unable to complete on our onward purchase so we agreed the 5-month gap with our buyers and they were fine with it.

Sold a second property just afterwards and on that one, E&C happened on the same day.

EmmaStone · 23/05/2024 16:26

I'd follow your solicitor's advice, but I'd quite like the security of knowing nothing was going to happen - the risk of it all falling through at the final furlough is always a scary part of the buying and selling process IMO.

mondaytosunday · 23/05/2024 16:29

Ha, no not normal at all. Way back when there was about a month between exchange and completion, I guess as it was in the dark ages (pre-internet) and it took time fur the banks to get the money sorted and delivered by horse and cart. However it conversely be don't in two weeks from viewing to completion if everyone was willing.
Anyhoo it seems the norm is not two weeks to to a simultaneous exchange completion (risky). Three months - they want the assurance you are going to buy but not the inconvenience of speeding up their move. Say one month max and they'd have to complete a lot earlier if they want you to exchange earlier.

BrassOlive · 23/05/2024 16:52

Our sellers pressured us to do this, our solicitor advised that we'd have to sign a waiver to say we had been advised of the risks.

Original poster
Kaltenzahn · 23/05/2024 17:24

Thank you! I was worried I was being over cautious. I've tried to be as helpful and accommodating as possible so far as they have three young kids, but I think they're taking the piss now! They must think I'm a massive pushover. I think I'll stick to maximum 28 days between exchange and completion and see if they're able to bring completion date forward at all.

OP posts:
Zebrasinpyjamas · 23/05/2024 17:26

Neither side know it will go through until exchange so I think it's natural for them to want to exchange as soon as possible. Yes you are right that you need to have finished all the checks first. Some people are not very motivated and have their own agenda so you will probably keep getting requests for updates and to commit to a timetable.

I think a 3 month gap between exchange and completion is longer than most but it's not an unreasonable request. You equally don't have to agree. It's a negotiation for both sides.

They may choose to opt for another buyer though rather than stay with you if it is a deal breaker for them. They may be able to compromise.

You need building insurance from exchange but not contents cover.

Mildura · 23/05/2024 17:30

You need building insurance from exchange but not contents cover

Often when there's a longer than typical period between exchange and completion the contract is amended to oblige the seller to continue with buildings insurance up until the point of exchange.

albertoross · 23/05/2024 17:32

It's the estate agent wanting their cash quicker