Buyouts, renegotiation, bridging loans
Long sale: how to finance a purchase when the deed is signed months after the preliminary sale agreement
Long sale: when to submit the mortgage application, how to keep a loan offer valid until the deed, and how the seller can do without a bridge loan.
A long sale is a preliminary sale agreement where the deed is scheduled far in the future: the financing must absorb this gap. Applying for the mortgage early locks in the rate, provided you obtain from the lender, in writing, an offer validity that covers the date of the deed, as an accepted loan offer lapses if the deed is not signed within the period it specifies. Waiting requires a longer suspensive condition and exposes you to the conditions on the day of submission.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- A long sale is a preliminary sale agreement where the deed is scheduled far in the future: the financing must absorb this calendar gap, and everything hinges on this.
- An accepted loan offer lapses if the deed is not signed within the period it specifies, unless the parties agree to a longer deadline.
- Applying for the mortgage early locks in the rate and conditions, but exposes the offer to expiration; waiting exposes you to the conditions on the day of submission.
- The suspensive condition describes a realistic mortgage at the date of the file submission, not at the date of the preliminary sale agreement.
- On the seller’s side, a signed preliminary sale agreement, a completed withdrawal period and a mortgage obtained by the buyer can replace the bridge loan to finance the purchase.
In a long sale, the deed is signed six months, nine months or more after the preliminary sale agreement. Align your loan with this date: the loan offer and the insurance agreement have a limited lifespan. From the seller's perspective, this is an alternative to a bridge loan and a buy-to-sell.
What exactly is a long sale?
A preliminary sale agreement where the deed is scheduled far in the future. The withdrawal period, the suspensive conditions and the deposit remain the same. The date is negotiated just like the price.
When should the buyer apply for their loan?
The seller wants a short suspensive condition; the law sets only a minimum. However, an offer obtained too early may expire before the deed is signed.
C'est un minimum, pas un usage. Dans une vente longue, rien n'interdit de stipuler une durée nettement supérieure, et c'est le premier point à négocier : la clause doit laisser le temps d'obtenir une offre à une date compatible avec celle de l'acte.
- En vigueur depuis le
- Source
- Article L. 313-41 du code de la consommation — Légifrance
| Apply for the loan immediately | Apply for the loan later | |
|---|---|---|
| Suspensive condition | Short, as in an ordinary sale | Long, or set to a date close to the deed |
| What you secure | The financing and its terms, right now | Nothing for several months |
| What you risk | An offer that expires before the deed if its validity period has not been extended | A market, or a personal situation, that has changed in the meantime |
| What you need to obtain | From the bank, in writing, an offer validity that covers the date of the deed | From the seller, a suspensive condition long enough to submit the application at the right time |
The first option is the safest, provided the lifespan of the offer is adjusted before the application is submitted.
How long does an accepted offer remain valid?
- Délai de réflexion de l'emprunteur 10 jours
- Maintien minimal des conditions de l'offre 30 jours
Ces deux durées se comptent en jours, à partir de la réception de l'offre. Elles ne disent rien de ce que devient l'offre une fois acceptée.
- En vigueur depuis le
- Source
- Article L. 313-34 du code de la consommation — Légifrance
Following acceptance, the loan offer lapses if the sale is not signed within the period it specifies, unless a longer period has been agreed (Article L. 313-36 of the Consumer Code).
- Compare the validity clause to the date of the deed.
- Request an extension upon submission, with the preliminary sale agreement attached: this is a criterion for choosing between lenders.
- Maintain a margin.
See the loan offer and the cooling-off period.
Protect your rate until the deed
An accepted offer at a fixed rate retains its rate; a simulation is not binding. Otherwise, draft a realistic suspensive condition: see drafting the suspensive condition. Report any change of employment or new credit after the deed.
On the seller’s side: the long sale, an alternative to a bridge loan
The price of your sale becomes the down payment for your purchase, without an advance.
- Preliminary sale agreement signed, buyer’s loan obtained: some lenders finance without a bridge loan.
- Buyer’s loan pending: the lender waits or proposes a bridge loan.
- No preliminary sale agreement: the classic bridge loan.
La quotité rapporte le montant du relais à la valeur du bien mis en vente, nette du capital restant dû. Un compromis signé sur ce bien donne à cette valeur une base incontestable.
- En vigueur depuis le
- Source
- Décision D-HCSF-2023-6, art. 1er, 2. — Légifrance
Clauses to negotiate with the solicitor
- A deadline for the deed.
- The option to sign earlier.
- A coherent suspensive condition, with possible extension.
- The fate of the deposit.
- The coordination with your own sale.
Compare with the timeline from the preliminary sale agreement to the keys.
I read the draft preliminary sale agreement, I choose the timing of the deposit and I request in writing the validity of the loan offer. The documents · the fees.
Deed date fixed? Create your file or check it by phone against the validity period of a loan offer.
Sources
Read next
- Mortgage rates in Lyon: current rates by loan term
- Bridge loan: how it works, its 3 forms and what to do if the property does not sell Buying before selling: dry bridge, secured bridge or buy-to-sell, what the bank actually advances, and the outcomes if your property takes time to sell.
- How long between the preliminary sale agreement and the keys? The actual timeline, and where to save time From sale agreement to keys, step by step: the legal deadlines that cannot be cut, those that can, and six levers to keep the timeline short.
- Mortgage financing condition: the four figures that protect you, and how to set them Drafted before the bank has spoken, the clause decides everything if the loan is refused: the four figures to include, how to set them, the wording to add.
- Loan offer: cooling-off period, validity, and how to avoid starting over The cooling-off period is counted to the day, the validity of the terms, and the modifications that require a reissue: accept your offer without losing time.
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