Exchange

Sassybot

It really does, especially when we've been up front with our solicitor the whole time and they have even advised us not to give notice until after the exchange. We were told they would arrange the exchange before we had to give notice so we did not budget for this.

Luckily I planned an 'emergency' amount into the budget for the move so we can take the hit. It's just frustrating that we seem to be told the wrong information.

Expected the process to be stressful and exciting, not frustrating.

Surrey_EA

Sassybot wrote: »

Expected the process to be stressful and exciting, not frustrating.

That was an error, almost without fail there are frustrations when buying/selling a property!

There are a surprisingly large number of variables, and no one person is in control of all of them.

Slithery

Sassybot wrote: »

We were told they would arrange the exchange before we had to give notice so we did not budget for this.

That wasn't very clever of them, as there is no way to know when exchange will happen until everyone is ready to exchange.

saajan_12

Sassybot wrote: »

Our landlord has already said they would be unable to negotiate termination of the tenancy - we asked before we agreed a completion date. -
that's unfortunate, this should be the easiest area to negotiate as rarely does notice being in line with arbitrary tenancy period end dates practically impact the LL, as long as they have enough notice.

Could someone confirm what happens at exchange? - sure, see below I'm even more confused than I was as I've just spoken to the EA and he has said that at exchange the full mortgage is transferred which is why it will only happen a week before completion. -
he probably means practically, the mortgage funds need to be requested from the lender (not sent to the vendor) a week before completion, so that's the latest you can exchange without risking having to return funds to the lender if it all falls through. However the exchange can be earlier. I thought the mortgage funds went across on completion day, which is why it can sometimes be delayed. - yes, to the vendor.
They have to be requested from the lender ahead of time,
and the solicitor undertakes to look after them / return to the lender if completion doesn't go through for whatever reason.


The EA is also advising us that everyone gives notice even though the seller can still back out. That sounds freaking insane. - they would say that though, to make you more committed and avoid a delay of an extra month for the vendor. Remember the vendor is their client, so they're not advising you anything - they are saying things in the interests of their client and themselves.

Beginning to seriously regret even thinking about owning a house as this is not an enjoyable experience. - hang in there, nearly the end, then its a lot smoother once you're in (as far as legal issues go.. still have repairs etc to look forward to)

*sulking*

You usually pre sign contracts and transfer the deposit to the solicitor ahead of exchange. Then

on exchange,

• Solicitor asks you for verbal / email authorisation to exchange
• Solicitor transfers the 10% deposit to the vendor's solicitor
• Formally exchanges contracts with the vendor's solicitor with a fixed completion date, etc
• Calls you to let you know you have exchanged

A week before completion: the solicitor will request mortgage funds from the lender, depending on how long the lender's process takes.

On completion: the solicitor transfers the balance of monies to the vendor's solicitor, who confirms you have completed and orders release of keys.

Sassybot

Thanks saajan_12 that is really useful to know

I'm just in such a pickle as to what to do if the exchange doesn't happen by COB Friday. We have no influence over when they exchange happens, yet we were promised it would happen for the reason mentioned previously.

Is there any way you can suggest I go back to the landlord/estate agent and try and negotiate notice? We've been there for two years, paid on time and have had no issues. They normally seem so cool about things but when I approached them to give them advanced warning and to ask about notice they wouldn't say anything other than it had to be before the 4th of every month.

I know I'm just stressing out and, like others have mentioned, it's likely they will do it at the last possible moment ie on Friday, but it's just not how I operate. If I didn't meet deadlines or keep my clients updated I would be hung out. Exchange is just weird.

Sassybot

The wording of our contract with the EA is;

'if no notice is given after then a statutory periodic tenancy shall arise on a monthly basis.

To end the periodic tenancy the tenants shall give the landlord/agent at least one months notice in writing. The notice must end on the day before the rent is due'

Slithery

When does the initial term of your AST end? Or are you already on an SPT?

Sassybot

Erm I'm not too sure of those acronyms but we were on a six month fixed contract to begin with but have been on 'rolling' for the last 18 months.

elverson

That means you've already moved to a statutory periodic tenancy (a "rolling" one).

https://www.pims.co.uk/periodic-tenancies/

Sassybot

I emailed our solicitor this morning asking for clarity about what the EA said yesterday. They have come back saying they requested the funds yesterday - does that sound right?

We've not exchanged contracts and completion isn't until the 23rd Feb. If the funds are transferred to the seller on completion, then it seems odd to request so far in advance - especially when we will pay interest on it

this would be so much easier if the solicitor would actually answer the phone and speak to me rather than over emails. It's hard to know what is going on when they drip feed us information like this.