Gap between contract exchange and completion - Suggestions please

dragonsoup

I'd exchange ASAP too.

We've always had 4 weeks between in the past ( that used to be the norm really) and it feels like forever but I'd want to tie everyone into the deal so if that means a 2 month gap then so be it.

ruggedtoast

Assuming you need a mortgage, its a problem as much as your lender make it one. Do you need a longer mortgage offer? Are your financial circumstances likely to change before completion? If so will it be a material change that can be discovered if the lender audits your file.

Don't go making any more credit applications while you wait for completion at least.

King_Slayer

I agree with Pinkteapot, I would exchange ASAP even if it meant waiting a month or two for completion. I would sleep better at night knowing that they have an obligation to complete. Also if it hits the fan and they decide to pull out for what ever reason, then they loose their deposit. So exchange ASAP and use the wait to arrange your move.

Muds1

King_Slayer wrote: »

if it hits the fan and they decide to pull out for what ever reason, then they loose their deposit. So exchange ASAP and use the wait to arrange your move.

seller's deposit ?


I didn't know they risk anything if they pull out after exchange ? i thought its just interest on deposit that we have given.

pinkteapot

Muds1 wrote: »

anything that we should be taking care of in such cases ?

The only tricky thing we found was insurance.

You have to get buildings insurance from exchange (if you're getting a mortgage, and sensible to anyway). You have to inform the insurer that the insurance is from exchange, so you're not living there yet. Insurers are used to this - it's normal. They're happy for you to have buildings from exchange and then add contents from completion date. But...

When we phoned insurers, many had systems that said no to more than two weeks between exchange and completion. The first one we found who would accept us was Hiscox, who are a high-end insurer and therefore expensive.

There may be some normal insurers who don't mind a long completion gap - we didn't phone them all. We just went with Hiscox for the first year's insurance and then switched.

pinkteapot

Muds1 wrote: »

seller's deposit ?


I didn't know they risk anything if they pull out after exchange ? i thought its just interest on deposit that we have given.

If a seller pulls out after exchange, they are liable for all financial costs you incur as a result of the delayed move. If they refuse to complete at all, rather than just delaying it, you can serve a notice to complete to force them. If they still refuse, you can sue them for any losses. Eg if house prices have risen in the meantime and an equivalent house will cost more, you can sue them for the difference.

But, seriously, I do think you're worrying too much. 99.99% (probably more) house sales complete absolutely normally after exchange. Problems are incredibly rare once you've got exchanged. And the vast majority of people are decent and won't trash the house between exchange and completion just because they can! Frankly, if they were going to have a trash-the-house leaving party, they could do that even if you only had two days between exchange and completion.

Main thing for you is overlapping rental costs. You can't normally pay for a half month - you give notice to coincide with the normal date on which you pay rent. So, if the 31st means you'll have to pay for a whole extra month, then try to negotiate to complete a bit earlier or later, so you only have a couple of weeks overlap with two properties.

The good thing about having a rental for a little while after completion is you can clean the new house, change carpets if needed, much more easily when it's empty.

CWSmith

We had the same problem when we bought a house a year ago. The vendors wanted 40 days between exchange and completion - because of "their son's A levels" and "a family holiday".

We were furious, most of all because this wasn't mentioned until the point of exchange, and we knew they were lying about the reasons - this was confirmed by the neighbours as soon as we moved in.

On the plus side, we had plenty of time to get ourselves organised, but it was possibly the longest 40 days of our lives.

We got insured with MoreThan, though I wouldn't recommend them, absolutely useless insurers as far as I'm concerned.

movilogo

As a buyer, you should always aim for minimal gap between exchange and completion. Some lenders insist on a minimum of 5-6 working days for draw down of funds.

Remember, lenders can withdraw mortgage offers anytime (rare, but happened to people). If you lose job or your circumstances change you have a legal duty to inform lender which may affect your mortgage offer.

So, always aim for minimal gap after contract is exchanged.

ruggedtoast

The good old chain free ready to move at any time bait and switch, eh. Same thing happened to us, we did move in eventually. After it became apparent that chain free actually meant quite a big chain and our elderly vendors having no plan A, B or C to actually move any of their furniture.