Vendor seeks extension - we've sold our current residence & will have nowhere to go!!

Our Vendor has requested an extension of the settlement date.

It is my understanding that they are moving into a new place at the later date and that they are transferring their existing loan to the new property. This means that their bank is not going to release their mortgage on our new house until the later date.

We have sold our current residence & cannot change the settlement date for that so if we say yes to the extension we will not have anywhere to live.

We can't really say no to the extension, because the vendor just can't settle. The mortgage will not be released. It is something to do with the structure of their loan requiring simultaneous settlement.

My solicitor has suggested agreeing to the extension & asking either to occupy the property on the original settlement date (rent free) making not having anywhere to live the vendor's problem. Or requesting that the vendor pay for alternative accommodation & storage.

Another thing I'm worried about is the possibility that they will request further extensions...

Just wondering if anyone has had a similar experience or can offer any advice.

Ta. :)
 
MMy solicitor has suggested agreeing to the extension & asking either to occupy the property on the original settlement date (rent free) making not having anywhere to live the vendor's problem. Or requesting that the vendor pay for alternative accommodation & storage.

Another thing I'm worried about is the possibility that they will request further extensions...

Just wondering if anyone has had a similar experience or can offer any advice.

Ta. :)
Yes. On my first purchase. Scared the **** out of me at first but was fine.

I chose to occupy and we settled five days later. Actually wish it lasted two days longer because I would have got increased FHOG!

We had to insure the place for replacement value but was otherwise rent free. I imagine there are some bad experiences out there though.

Good thing is if its dragged out you live cost tree for a while. If it all falls over you should also be in a favourable, although obviously not ideal, position.

G
 
hi Selina
this is not uncommon on similtanious settlements.
what I would do is negotiate a deal with you buyer to settle and stay for say 1 week or 2 depending on the the other settlement time frame
I would then multiply that amount by 1.5 and tell the other vendor that this is what its costing you and that you need to be reinburst
so if where you live now is 300 for rent say
then the people holding it up its 450
and you have to move nothing
your settlement goes ahead and the buyer get paid for a week or two from you
and you make a couple of hundred dollars
also if the hold up is some thing thats not your vendors fault he can quantify the costs up front
if its a month then rent some where and do the same numbers
I would not move into the house and get rent free as you are make no money out of that
this way you get rent free
and get cash
they want the extension thats fine but there are costs to that
don't go over board just normal rent with a premium and that should be fine
 
I did!

They gave us extra discount in exchange for one more month.

A license agreement was made between us and the vendor.
 
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