I wanted to ask whether anyone else in a chain is finding that the upcoming Budget (Wednesday 29th October) is making people jittery. Our buyer has gone noticeably quiet over the last week or so. We had been exchanging emails via our respective solicitors at a reasonable pace, and then suddenly nothing since last Monday.
I rang my solicitor on Thursday and she said she had chased but had not had a reply from the buyer’s solicitor. She did not seem alarmed and said it was “normal” for things to slow around this time of year, but I noticed that the Rightmove data this week showed asking prices barely moving and mentioned buyers pausing because of Budget speculation. That rang a bell.
My concern is twofold:
-
If the Chancellor changes stamp duty thresholds or rates on Wednesday, could that give our buyer a reason to renegotiate the price downward? We agreed the sale at £385,000 and I would not want to reopen that.
-
Is there any risk that CGT changes announced in the Budget could affect us as sellers of our main residence? I have always understood that your primary home is exempt, but with all the talk of tax rises I just want to be sure we are not exposed to something unexpected.
We are downsizing from a detached house to a bungalow and the sale price exceeds the purchase price by a considerable margin, so if the rules changed it would not be trivial. I am sure this is just my anxiety talking but I would rather ask and be told I am worrying about nothing than get caught out. Any advice very welcome.
@grahamtilk, yes, very much the same here. Our buyer’s solicitor has gone quiet since mid-week and I suspect it is exactly the same thing. Nobody wants to commit to anything until they know what Reeves is going to announce on Wednesday.
I remember something similar around the stamp duty deadline back in March. Our neighbour was trying to sell and the buyer basically paused everything for two weeks waiting to see what would happen with the thresholds. In the end nothing changed that affected them and it was just wasted time.
The Rightmove data from this month seems to back it up. Asking prices barely moved in October, which is unusual for this time of year. I think a lot of people are just sitting on their hands.
My instinct would be to get your solicitor to send a gentle chase on Monday morning. Even if there is nothing substantive to report, it keeps the file on someone’s desk rather than in a pile. That is what ours did in September and it seemed to help.
@Ferngate52, thank you, that is helpful. The stamp duty parallel is a good one. I suspect you are right that it is mostly people being cautious rather than anything fundamentally going wrong.
I will get on to the solicitor first thing Monday morning. The bungalow seller’s agent has also stopped returning calls since Thursday, which is probably just the weekend but it all adds up when you are already anxious about it.
Small update for anyone following this. Our buyer’s solicitor got back to ours this afternoon, which is the first meaningful communication in about a week. They have raised a couple of additional enquiries which our solicitor says are perfectly standard, so it seems like things are at least moving again rather than completely frozen.
The buyer himself rang the estate agent this morning to say he is still committed but wanted to wait until after Wednesday before agreeing exchange dates. I can understand that, even if it is frustrating. I suppose from his point of view there is no cost to waiting two more days and a potential cost to not waiting, depending on what the Chancellor announces about stamp duty or anything else.
Presumably by Thursday we will all have a clearer picture and can get on with it. Fingers crossed.
Another quick update. The additional enquiries our buyer’s solicitor raised have now been answered, and our solicitor says there is nothing else outstanding on our sale side. The purchase of the bungalow is also progressing, though they are still waiting on a management company information pack for the estate.
So we are closer than we have been, but the Budget is tomorrow and I confess I am slightly holding my breath. From what I have read, most commentators seem to think stamp duty changes are unlikely in this one, but you never quite know until the Chancellor stands up. If they did alter the thresholds or rates it could theoretically affect our buyer’s calculations.
Presumably if we can get to exchange this week or early next week we will be in good shape. Has anyone here ever exchanged the same week as a Budget, or do solicitors tend to pause and wait for the dust to settle?
@grahamtilk, I asked our solicitor something similar last week and she basically said they would not hold up an exchange for the Budget unless there was a specific rumour about stamp duty thresholds changing. Her view was that this Budget is more likely to focus on capital gains and inheritance tax than residential stamp duty. I suppose we will find out tomorrow. Fingers crossed for you that the chain keeps moving.
Well, the day has finally arrived. Budget this afternoon. I am hoping that once it is out of the way we will see some movement from the other end of the chain. Our solicitor is not expecting anything in the Budget that would directly affect our transaction, but the uncertainty itself has been the problem. I will update later once we know what has actually been announced.
So the Budget came and went yesterday and, as far as I can tell, nothing directly affecting our transaction. No stamp duty changes, no new capital gains surprises for ordinary home movers. The stamp duty thresholds are still reverting in April as previously announced but that was already known.
I have emailed our solicitor first thing this morning to ask whether, now that the uncertainty is out of the way, we can expect things to pick up. No reply yet but I am hoping the other end of the chain will start moving again. Our buyer’s mortgage offer expires in mid-December so there is a natural deadline there whether anyone likes it or not.
Has anyone else in a chain noticed any immediate change in pace post-Budget? I would have thought solicitors and brokers would be straight back to business today but perhaps I am being optimistic.
@grahamtilk, glad to hear nothing nasty in the Budget for your chain. Same here, our buyer’s solicitor actually got in touch yesterday afternoon before the dust had even settled, which I took as a good sign. Saw the Nationwide figures this morning showing 2.5% annual growth and prices still ticking up, which might help settle a few nerves on the buyer side. Fingers crossed you get some momentum now.
A proper update this morning. Our solicitor rang just before 5pm yesterday (I know, on a Thursday evening) to say that the bungalow vendor’s solicitor has confirmed they are ready to exchange next week. Our buyer’s side has also confirmed they have mortgage funds in place and their solicitor is aiming for the same date.
So after weeks of stalling, it looks like exchange could happen as early as Wednesday or Thursday. I am cautiously optimistic but will not be uncorking anything until contracts are actually signed.
The stamp duty position stayed the same in the Budget, which I think was the main thing holding people back. I noticed the RICS survey this week showed demand dropping off in October, which makes sense given everyone was sitting on their hands. Presumably things should pick up a bit now there is some certainty.
I will update when we have a firm date. Thank you to everyone who has followed this saga.
@grahamtilk, brilliant news. Sounds like the Budget logjam has finally broken for you.
Similar story at our end. Our buyer’s solicitor sent through the engrossed contract today, which I gather means they are ready to go once we agree a completion date. Solicitor thinks exchange within the next two weeks is realistic. Fingers crossed for both of us.
@grahamtilk, good to hear things are moving your end too. Our solicitor called this morning (Saturday, I know) to confirm that exchange is pencilled in for Tuesday. The buyer’s deposit has been cleared and all the searches are back. She said the only thing outstanding is a management company enquiry on the bungalow vendor’s side but it is expected Monday.
Fingers crossed we are both exchanged by midweek.
@Ferngate52, that is excellent news. Your solicitor working on a Saturday, that is dedication.
We are in a very similar position. Our solicitor confirmed yesterday that our side is ready to exchange and that the bungalow vendor’s solicitor has everything they need. The only delay now is exactly the same as yours, a management company enquiry that has been sat unanswered for a few days. It is a small retirement development so presumably the management company is not the most responsive outfit in the world.
I have to say, after weeks of feeling like the whole chain was stuck in treacle, it is strange to suddenly be on the verge of exchanging. I keep expecting something else to come up. My wife says I need to stop checking my email every twenty minutes but old habits die hard.
If all goes well, we should both be exchanged by midweek. I will update as soon as I hear anything.
@Ferngate52, just checking in. Still on track for Tuesday at our end too. Both solicitors have confirmed they are ready to go first thing. The bungalow vendor has agreed to a four-week completion which suits us perfectly. After all these weeks of stalling it feels almost unreal that it might actually happen in the next 48 hours. Fingers crossed nothing derails it overnight.
Well, it is done. Both solicitors exchanged at about 9.15 this morning. Completion is set for Monday 1 December, which gives everyone in the chain four weeks to sort removals and final bits.
I have to say, after nearly three months of back and forth, the actual exchange was almost anticlimactic. Our solicitor sent a one-line email confirming it and that was that. No fanfare, no champagne cork emoji. Just “contracts exchanged, completion 1 December.”
@grahamtilk, I hope yours has gone through this morning too. Fingers crossed the whole chain is locked in now. What a saga.
@Ferngate52, same here. Exchange confirmed at about ten past nine. Completion also 1 December. I genuinely did not believe it would happen until the email came through. The bungalow is ours, subject to nothing falling apart in the next four weeks. What a relief. Thank you for keeping me sane through this thread!