This is a private arrangement between the two of you and hence, it would not be regulated if it was a plain straightforward sale.
It amazes me that the people who regulate it are the FCA and they are the ones who would prosecute when you asked for advice, as to whether something is okay or not, they will say. Bizarre.
What you have here is a Private mortgage. The seller is in effect lending you the money and taking repayments over a period of time
What would normally happen is that the property would exchange and complete and you would grant the seller a mortgage over the property in favour of the seller and there would be a mortgage deed with the repayment terms. The seller would be acting just like a mortgage lender.
If the seller is remaining in occupation however this is a sale and rent back albeit that the rent is payable by way of mortgage and hence it is regulated.
Here is some reading from citizens advice https://www.citizensadvice.org.uk/debt-and-money/mortgage-problems/how-to-sort-out-your-mortgage-problems/sale-and-rent-back-schemes/
There is no reason why could not exchange contracts now and complete in some years time, but if I was acting for the seller, I would advise against that. It’s a very convoluted way of dealing with it.
Can I clarify anything for you?
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We can still exchange emails. Best wishes.
You might struggle to get a solicitor to advise his client to exchange contracts and complete 20 years later. It’s problematical for a whole load of reasons including what happens on death, what happens if he wants to repay early? If you default, but what stage does it revert to the seller. If the company goes bust for any reason, the liquidator owns the house and you have paid all that money for nothing. The contract is going to be quite complicated.
If it is going to go down the delayed completion route with no rent being paid, I’m of the opinion that it is not going to be regulated. Problem is that if the FCA decide to prosecute for selling a regulated product when you are unregulated, the only person that would decide whether you were correct or not would be the court judge.
Sometimes, there is not a definitive answer and we can only give an opinion. If there was a definitive answer to every legal question, courts would close.