Exchange & Completion Deposit - Confused :-(

mangog

I am a bit hesitant to do both on same day, but if it will mean we will have more of a cash pot at the end after completion, I am more inclined to.

I'm not sure what you mean here - why would you have more cash after completion if you do both on the same day? Surely you pay the same amount regardless of when exchange and completion take place - or is this to do with solicitor fees?

I'm also a FTB approaching exchange and thought I understood the process, but maybe not!

G_M

The risk with Exchange / Completion on the same day is that you have no guarantee of when you will Complete and become the owner. You may have a plan, or a hoped-for date, but things can, and often do, get delayed. Or cancelled completely.


So you cannot
* arrange time off work in advance
* hand in notice on your rental
* book removal company
* arrange for friends to help you move
* have time to pack - unless you pack everything and then unpack it again if/when the purchase falls through
etc


By Exchanging a week or 3 in advance, you have a fixed Completion date and can then plan everything in advance.

saajan_12

Agree with this in general, but if you are not also selling a property and not looking to move in immediately (or within a week of the "hoped for" completion date, some of these may not be so much an issue:

G_M wrote: »

The risk with Exchange / Completion on the same day is that you have no guarantee of when you will Complete and become the owner. You may have a plan, or a hoped-for date, but things can, and often do, get delayed. Or cancelled completely.


So you cannot
* arrange time off work in advance- no need to take time off if you can collect keys the day after, can contact solicitor during work to give final go ahead (2 min phone call in theory)
* hand in notice on your rental - can do this day after completion
* book removal company - pencil in before, finally agree after completion
* arrange for friends to help you move - move after completion
* have time to pack - unless you pack everything and then unpack it again if/when the purchase falls through- don't pack until completion.
etc


By Exchanging a week or 3 in advance, you have a fixed Completion date and can then plan everything in advance.

G_M

saajan_12 wrote: »

Agree with this in general, but if you are not also selling a property and not looking to move in immediately (or within a week of the "hoped for" completion date, some of these may not be so much an issue:

Indeed. The OP's specific circumstances will dictate which, if any, are relevant.


I simply wished to give a few examples to clarify why a gap can be advantageous and/or why no gap can be stressful problematic.


As said earlier, there are pros and cons and it's a matter of weighing them up and deciding.