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Delayed completion or instalment contract?

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  • Delayed completion or instalment contract?

    We have a property on the market. There is no mortgage or other debt on it. It was our main residence but we have now moved out.

    We are considering how we can accommodate a potential buyer and have come across delayed completion and instalment contracts. I am aware we can just say no; our house is sellable.

    A person is interested in buying but has not had an offer on their house yet. I understand there is no mortgage on their house either. Without selling their house, they cannot buy our property outright. I believe the buyer to be semi-retired so it would be difficult for them to get a mortgage.

    Does anyone know about these 2 types of contract, either delayed completion or instalment?
    Specifically:
    • if completion is after 3 years, does this trigger capital gains tax to be paid because it is outside the "grace" period?
    • if instalments are paid to us, do we become liable to income tax on those payments?
    • how is interest calculated on those payments in an instalment contract?
    • how do you arrange for the buyer to pay for buildings insurance until completion?
    • would we still be the legal owners of the property?
    • what are the legal costs of drawing up such a contract likely to be?

    Is there anything else we should be aware of? This is all completely new to us. Thanks.
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