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They are emmigrating then and are also expecting a baby in 4 weeks, so they want to avoid having to move twice. They are keen to exchange as quickly as possible though.
That cake. I can haz it. And eat it?
They can pay you the interest on the deposit?
I'm not sure how this might affect any mortgage offer - @Hefty might know. You might find your mortgage offer has expired by then, and things have moved on.
Personally I'd use this as a further bargaining thingy. 'OK that's fine but we are taking £15k off our offer to compensate for interest and uncertainty' or something.
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My question is, what risks are we exposing ourselves too if we exchange contracts 2 months before completion.
I think the main exposure is that you'd still be liable for the EA & solicitor fees if it all fell through after exchange of contracts. But I'm no expert.
If you love the house, I'd have your EA find out more about their emmigrating situation. Is it nailed on, have they got Visas sorted, or are they dependent on a job offer etc etc. Cos if they are waiting on something that is not 100% sorted, and don't get it, you could end up waiting 5-6 months for nothing.
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My question is, what risks are we exposing ourselves too if we exchange contracts 2 months before completion.
You can buy insurance against this, IIRC
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One option would be to move the exchange date to March or to closer to March say Mid Feb. It's not unusual to have some kind of delay between agreeing an offer and exchange date and then a further gap to the completion date. Buildings Insurance is the key thing I know of you need to start from the date of exchange. I'm guessing you will have surveys that will need to be completed or further checks you might want to do (perhaps you have already done these).
If you want to negotiate further you can always do this until the date of exchange. But ultimately if you are happy with the price you are paying and they are happy with the price they are selling it may be best not to upset this balance.
Exchanging contracts early has the advantage that you are sealing the deal (assuming you are happy with it). Exchanging contracts later means that there is a risk that the seller pulls out. Normally mortgage offers are valid for a certain period of time (months) so as long as you are within that time it shouldn't be a problem.
Just realised I was replying to a post a few pages back @hovis so not sure if this still relevant!
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@Hovis
Just had an offer we put on a house accepted. Wahey! Only downside is the seller is saying on the condition that we delay completion until March. They are emmigrating then and are also expecting a baby in 4 weeks, so they want to avoid having to move twice. They are keen to exchange as quickly as possible though.
My question is, what risks are we exposing ourselves too if we exchange contracts 2 months before completion. From what I understand, after exchange we become responsible for the property and thus will need to get building insurance, but is there anything else I should be thinking about?