Exchange and complete on same day? ('normal' purchase)

GeekDom

The property I am buying is currently vacant with vendor living in rented accommodation. I am also renting and would like to complete asap and give required notice to vacate.

Is it reasonable to ask vendor whether they would be willing to exchange and complete on same day? Are there any implications for either party/mortgage or solicitors?

Thanks!

Yorkie1

It is not often recommended in a standard transaction, just because anything can go wrong up to the day itself, when you have removals booked etc etc.

Far better to allow some time between exchange and completion. This will enable you to give notice on your rented place after exchange, and not have to pay dual rent / mortgage for the full month's notice (or more depending on when in the tenancy period you give your notice).

It will also allow you time to finish the packing and book removals, and plan the final practical steps such as setting up a mail redirect, etc.

People who exchange and complete on the same day almost always report it is additional stress. Why put yourself through this?

Hump

The other party might ask you for a deposit upon exchange, to guard against you pulling out - something you shouldn't need if you exchange and complete on the same day - definitely stressful

Thrugelmir

Lenders aren't always keen.

GeekDom

Thrugelmir wrote: »

Lenders aren't always keen.

Can you please explain?

Riggster

On my last two house purchases, 2005 and 2008, there was no chain for various reasons, and my solicitor exchanged and completed on the same day.

He knows what he's doing and I trust him.

Both times we knew the vendor was extremely unlikely to pull out, as they'd invested time and money with their solicitor and were unlikely to find another buyer to make them a similar offer in a short period of time.

All parties concerned knew we'd complete on the day in question, but I think it meant slightly less risk to me (i.e. avoiding the difficult, albeit unlikely, situation where something untoward happens between exchange and completion).

I'm now in the process of selling my house and buying another. Fortunately there's only two houses in the chain, the one I'm selling and the one I'm buying. I think we'll be trying to exchange earlier this time to secure my seller and the house I want to buy...

hazyjo

Not advisable to give notice until you've exchanged. Can't really do that if you do both on the same day! Don't you have to give a month's notice or something? Or are you planning on staying in the rental for a while after buying the house (refurb?)?

You can't notify anyone until you've exchanged. It can be very stressful doing it all on the same day. You honestly don't know if you're coming or going, and sit there waiting for the phone to ring (been there, done that).

Jx

martinsurrey

I think if you’re in a rental, so no need to move on completion day and the purchase house is vacant, simultaneous exchange and completion is better (I am currently aiming to simultaneously exchange/complete on a house next Wednesday).

-No worry that the empty house will burn down/flood between exchange and completion.
-No worry that the mortgage company will pull their offer after exchange.
-No worry that the vendor will get cold feet and not complete, rare but it does happen
-No worry that something that you thought was included is removed or damaged (we’re doing a completion inspection 30 min’s before the solicitors exchange/complete, and will receive the keys there and then.

The only problem is that the vendor can pull out up to the exchange/completion day, but in a chainless transaction this is very unlikely (only 2 parties to keep happy), and this can happen in a normal transaction up to exchange anyway.

Our solicitors were ready for this, as we’ve been aiming for it from day one, they don’t like it to be dropped in at the last minute as it takes a while to get the final paperwork in order and draw down the mortgage.

Good luck with it J

Tyler119

We are exchanging and completing on the same day. However we are lucky enough to be cash buyers. The vendor has also allowed us into the property with a builder and architect as we are going to build an extension straight off. We have seen in the person that the vendor is packing up the house and so for us there is no risk of anything going wrong. It really depends on individual circumstances.

Our solicitor did explain that normally they have a 10 day period between exchanging and completion as caution in case something goes wrong with mortgage or the vendor pulls out. However in our situation he is comfortable that nothing will go wrong.

Again this just depends on situation. I guess it comes down to what everyone is comfortable with and how secure everyone is in their plans.

Good luck with your new house though! We should have our keys next week!

GeekDom

Thanks for all your comments.

I would prefer to exchange/complete on same day, as I can give my 1 months notice straight away, and redecorate etc within that timescale. The vendor is also renting, so I think they may prefer saving a little on mortgage repayments between exchange and completion.

I have also been told that such a method can sometimes trigger a 'fraud alert' by solicitor or lender, meaning more stringent checks before exchange. I this normally the case?

neiluk111

You may find that your notice period of one month will be counted from next day in the month that your original contract commenced.

As an example, if you started your original tenancy on the 15th August, if you hand your notice in today (1st May) , the month will commence from 14th May, and your last day will be 14th June.

I'm assuming you've gone onto a periodic tenancy now.