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How to accommodate a different kind of sale?

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  • How to accommodate a different kind of sale?

    Has anyone any experience or thoughts on how to structure a slightly different approach to a house sale?

    My potential buyers have asked if they can pay a higher deposit (30%) with an extended, long term completion date of 9 months. They do not want to take out a mortgage and are waiting on funds from an inheritance.

    This house is in Spain and I have,to date, had little luck with selling it. I live in this house but want to move back to UK, so thought I could rent it to the buyers in the meantime, until they pay final completion. I do have a small mortgage which I would clear on final completion.

    Legally, we can sign exchange contracts on any level of deposit and set the completion date for whenever we like but various people have mentionned charging interest..? I do not see how this would work if they are not taking ownership of the property...?

    Would appreciate any input
    Many thanks

  • #2
    Re: How to accommodate a different kind of sale?

    Delayed completions are not as unusual as you think, I do them all the time, more people will generally have 3-4 weeks between exchange and completion but they can legally be 21 years so that is perfectly OK by the legal system.

    You can charge interest, I often pay 3% or so interest, you are in effect loaning them 70% of the value to the property for 9 months, if they took out a bridging loan that would be approx 1.5% of the money borrowed each month so for you to charge them 4%-5% for 9 months is more than reasonable !!!

    It seems to work for your situation but I would get penalty clauses put into the agreement in case they do not complete when they say they will and also make sure that the agreement states that they cannot alter the property until they have legal title

    Hope that assists
    Adam Long

    www.quickhomeseller.co.uk

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    • #3
      Re: How to accommodate a different kind of sale?

      Very dangerous to comment on this as it will involve Spanish Law!
      RICHARD WEBSTERwww.rwco.co.uk
      As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

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