Exchanging contracts when abroad

raddon24

Hi

I am taking extended leave from work and will be abroad for 6 months. I am currently in the process of buying a house. I am hoping to have exchanged before we leave (it will be close) and then will complete upon return. However, if we haven't exchanged before we leave, do you see this being an issue? Can i sign contracts from abroad?

Thanks
Jonny

letitbe90

You could sign (but not date) them all before you go abroad and hand it to your solicitor. Once contracts are ready to be exchanged, the solicitor will call you to confirm you want to exchange, date the paperwork (and you transfer the money) and they will process it for you.

Slithery

If the contracts are ready you can sign them before you leave. If not then it's possible to give your solicitor a limited POA to sign them for you.

Is the vendor happy to have a 6 month gap between exchange and completion? This seems very unlikely to me.

babyblade41

I assume your vendor knows you won't be completing for some time ?

I don't envisage any legal issue, I have been on holiday and exchanged

raddon24

Yes, it actually suits the vendor as much as us to complete 6 months after exchange. This all sounds promising, though i cant help stressing

pinkteapot

As others have said, you're not present for exchange. You sign the contract and return it to your solicitor so they have it ready for exchange. You can do this as soon as the contract has been prepared (check in with your solicitor). At exchange you just need to be available by phone (preferably) or email (if phone not possible) - you confirm to your solicitor you're happy to go ahead and they exchange on your behalf.

One problem you will have - you should insure the house from exchange. If you're getting a mortgage, you must insure from exchange (it'll be a condition of the mortgage). If you're not, it's up to you but highly advisable as if the house burns down, you still have to complete. The problem will be that most insurers won't do it with more than a few weeks between exchange and completion - their computer systems won't cope with it. I once had two months between exchange and completion and had to use an expensive, high-end home insurer as standard ones wouldn't insure it for that long before I moved in. I used Hiscox, but if they can't help you try going through a broker.

hazyjo

pinkteapot wrote: »

If you're getting a mortgage, you must insure from exchange (it'll be a condition of the mortgage).

Hopefully neither party will need a mortgage or they'll expire by the time completion happens. Extensions are not guaranteed.

eddddy

pinkteapot wrote: »

If you're getting a mortgage, you must insure from exchange (it'll be a condition of the mortgage). If you're not, it's up to you but highly advisable as if the house burns down, you still have to complete. The problem will be that most insurers won't do it with more than a few weeks between exchange and completion

If you want, you can agree with the seller that the seller insures between exchange and completion - and have the contract modified accordingly.

You also need to check your mortgage offer (if you need one). Often the offer is only valid for 6 months - i.e. you have to complete within 6 months.

AdrianC

The thought of six months between exchange and completion fills me with dread - especially if you're going on some sort of life-break for that period. A lot can happen in six months. That's a lot of time and head-space and influences all working on your decisions, even before you start to factor in the risk of external influences. Will your employer and/or job even be there for you to return to?

hazyjo

AdrianC wrote: »

The thought of six months between exchange and completion fills me with dread - especially if you're going on some sort of life-break for that period. A lot can happen in six months. That's a lot of time and head-space and influences all working on your decisions, even before you start to factor in the risk of external influences. Will your employer and/or job even be there for you to return to?

Meant to add something along the same lines. Wouldn't do it in a million years.


Wouldn't even want to leave it 6 months since my last viewing (as happened with my current house as she took it off the market and we had to sell), let alone commit to buying it! Who knows what might happen in your life, or indeed the vendors'!

raddon24

Yes, job is guaranteed on return. We will be relying on a 4 week extension being accepted.

6 months might not work for you, but the thought of coming home to a great job and (hopefully) a new home fills me with excitement not dread.