We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Time between exchange and completion
fairy_lights
Posts: 9,220 Forumite
Hi All,
Myself and my OH made an offer on a property last week which has been accepted. The couple living in the house have sold it to a building company in part exchange for a new build they are buying, this was explained to us before we put our offer in and we were aware that it would be several months before the new house was ready.
The building company have said that the house may be ready for the couple to move in to around June, but worst case scenario could be as late as September. This is fine by us as we are happy to wait and it gives us more time to save up for furniture etc.
However we received a memorandum of sale from the building company this morning and they have proposed we aim to exchange by the end of February, with completion no later than September. Which could mean a staggering 7 months between exchange and completion :eek:
We'd assumed exchange would happen a lot closer to completion and are not sure if the implications of having such a large gap. If something were to happen to the house like a flood or a fire in those 7 months, would the building company have to sort it out or would it be our problem?
We're not sure the mortgage company will be ok with this either so will be talking it over with our mortgage advisor later in the week, but I just wanted to know if there are any obvious problems with having so much time between exchange and completion? I've never heard of such a long gap before!
Myself and my OH made an offer on a property last week which has been accepted. The couple living in the house have sold it to a building company in part exchange for a new build they are buying, this was explained to us before we put our offer in and we were aware that it would be several months before the new house was ready.
The building company have said that the house may be ready for the couple to move in to around June, but worst case scenario could be as late as September. This is fine by us as we are happy to wait and it gives us more time to save up for furniture etc.
However we received a memorandum of sale from the building company this morning and they have proposed we aim to exchange by the end of February, with completion no later than September. Which could mean a staggering 7 months between exchange and completion :eek:
We'd assumed exchange would happen a lot closer to completion and are not sure if the implications of having such a large gap. If something were to happen to the house like a flood or a fire in those 7 months, would the building company have to sort it out or would it be our problem?
We're not sure the mortgage company will be ok with this either so will be talking it over with our mortgage advisor later in the week, but I just wanted to know if there are any obvious problems with having so much time between exchange and completion? I've never heard of such a long gap before!
0
Comments
-
That's what insurance is for.0
-
So If Buildings insurance would be our responsibility from the point of exchange I can't really see any advantages to such an early exchange from our point of view, other than preventing the seller pulling out.
We'd be paying for insurance on a house we don't live in for up to 7 months!
Are there any plus points to exchanging so early or should we try to avoid it until closer to the completion date?0 -
If you delay exchange, the builders might change their minds and increase the price later, especially if house prices rise.
If you exchange early, you and they are commited, but will your mortgage offer still be valid? Many offers are good for a certain period of time. What if it expires, your circumstances change (or the lending criteria) and you can't get a mortgage?
Catch 22.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards