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Simultaneous exchange and completion - why?

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neilio
neilio Posts: 286 Forumite
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in House buying, renting & selling
I’m curious to know why people want simultaneous exchange and completion dates. When I sold my flat to a FTB last year, they were adamant that they wanted simultaneous exchange and completion day because, for some reason they never explained to me, that was their only option and any longer was unacceptable to them. I needed two weeks (pretty standard, right?), but the buyer was incredibly belligerent and did not understand that I couldn't take a risk of agreeing to such a thing. I politely asked the buyer several times to explain his position to me but he never did or was able to. In the end it was a 4-day completion and he thought he was doing me a favour!

Oddly, when I have told this story to people ever since, I get a mix of reactions. Generally older people who have bought or sold before think it’s outrageous and massively high risk for someone to want simultaneous exchange and completion dates. On the other hand, several younger FTBs I’ve spoken to had an expectation when they bought that they could have simultaneous exchange and completion dates and found it incredibly stressful to wait a few weeks between.

I don’t understand it and I’m genuinely curious. Where is this view of simultaneous exchange and completion dates being a good thing coming from? What is the benefit, if any, and to who?
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  • kingstreet
    kingstreet Posts: 38,766 Forumite
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    100% mortgage?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • G_M
    G_M Posts: 51,977 Forumite
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    Some people, esp young FTBs don't fully understand what's involved as they've never done it before.

    And they're in a rush to get into their new home.

    And they live with mum/dad so have few arrangements to make - no tenancy to terminate, no huge lorry-load of stuff to pack/book etc

    For most people though, the number of things which need doing after exchange and before completion means a decent gap is helpful.
  • spendinglikemad
    spendinglikemad Posts: 312 Forumite
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    We asked for same day exchange and completion but there is no chain for us as house is empty and we just wanted to sort out everything as fast as possible - no real downside for us if it cannot be done but if it can then great.

    SLM
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
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    If you are a FTB, or just a buyer with no related sale, purchasing a property that is already vacant for one reason or another, then simultaneous exchange and completion can work well.

    However, if there is any sort of chain involved I really think the added stress is not worth it.

    Whilst the period of time between exchanging and completing is there to be negotiated between buyer and seller, 14 days is pretty normal.
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
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    I think simultaneous exchange/completion is OK if there is no chain at either end. My son had it to buy his flat - he was a FTB and his seller had already moved. We had it to buy our investment apartment - seller again already moved and no chain at our end.

    When we bought our bungalow to live in, it was a probate sale and we had no chain,we exchanged and completed within a week. The same gap when we sold our house to first-time buyers - we had already moved into the bungalow.

    So I think,if there is no chain a simultaneous or short gap is OK.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • amateur_house
    amateur_house Posts: 276 Forumite
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    My solicitor arranged simultaneous exchange and completion for my purchase, and seemed to think it quite normal so I didn't question it. There was no chain and it was a probate house and unoccupied.
  • 6am
    6am Posts: 178 Forumite
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    There were a number of posts before that went like this "help, made redundant after exchange before completion". The advice was to keep quiet and hope that lender does not find out. There was also a post recently where somebody complaint that there was a delay in money transfer and their money did not arrive in time for completion. Buyer is risking their deposit in case something goes wrong before exchange and completion. By having simultanious exchange and completion buyer is assured that everything is in place before they exchanged. What is the risk for seller in case of simultanious exchange and completion?
  • Hedgehog99
    Hedgehog99 Posts: 1,425 Forumite
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    The risk for the seller in simultaneous exch/comp is all the other things they have to tie in - booking removals etc., changing over their house insurance As the completion day gets nearer, more removal companies fill their diaries. OK for FTBs who have rugby team mates and can hire a van for their umpteen games consoles and binliners of clothes, but not for people moving out of a several-bedroom house.
  • North4
    North4 Posts: 17 Forumite
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    As Hedgehog99 says the seller may have to make commitments in advance of exchange if completion takes place at the same time. This is also true for the buyer. I heard of one case where an unscrupulous seller demanded a higher price on the day of exchange/completion and the buyer had little option but to go with it at that late stage.
  • suki1964
    suki1964 Posts: 14,313 Forumite
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    In the days of 100% mortgages , same day exchange and complete would have been the norm, no deposit to put down

    Not all first time buys are moving from mum and dads. We had rented for years, unfurnished, so had two van loads to shift. Completion went through at 2pm, and we had to leave the keys back to housing association at 4pm., flat completely empty and spotless, ready for the new tenant the following week
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