Apportionments, Exchange and Completiom

Kad_Williams

It’s probably very boring that I’ve found myself asking these “am I completing soon?!” questions on this board. I’m sure their very tiresome but I think I get why people do now as the house buying process is weirdly opaque and prone to creating more questions than answers. I hope you don’t mind answering these.

My ‘agreed completion date’ (as per email from solicitor) is this Wednesday (it’s Monday today). Funds have been requested from the lender and an ‘apportionment statement’ requested from the vendor’s solicitor last Thursday. I’m aware that this date is not binding as there has been no exchange.

- what is an apportionment statement and is it normal that it would be provided this late in the process?

- seeing as the date is not ‘firm’ would I be foolhardy to expect that this completion date will come through?

- and if so would I expect someone to have warned me by now or is it normal to just pass these dates by without much fanfare?

davidmcn

Well, we don't know what they're apportioning either, but it could be anything which doesn't neatly fall into line with your completion date. At a guess possibly service charge? It will be less opaque once you see it.

Not much point doing completion statements until you know what all the numbers are and what might be a likely completion date.

Kad_Williams

The service charge would appear to be the most likely thing. Maybe something that needs to paid up until completion date. Or already paid for past it. I think I understand.

I’m guessing, based on your comment about completion statements that it’s maybe odd that I’ve been sent one? And that a completion date has been agreed?

davidmcn

Kad_Williams wrote: »

I’m guessing, based on your comment about completion statements that it’s maybe odd that I’ve been sent one? And that a completion date has been agreed?

You said your solicitor had referred to an agreed completion date, which would suggest a date has been agreed in principle, yes.

Kad_Williams

Yes of course. The completion date being agreed, I’m aware of because she sent me one. It’s just you made it seem like that was perhaps the wrong order of things.

I was curious about all of this because if the date is essentially just a target and not all the numbers are in; now would surely be the time to say to one’s client ‘hey Wednesday is not gonna happen. Let’s focus on exchanging first’

G_M

Kad_Williams wrote: »

.....

My ‘agreed completion date’ (as per email from solicitor) is this Wednesday (it’s Monday today).
No Exchange so this is just a target date. It may change.

Funds have been requested from the lender

yes has to be done a day or 3 in advance to ensure the cash arrives.

and an ‘apportionment statement’ requested from the vendor’s solicitor last Thursday. I’m aware that this date is not binding as there has been no exchange. correct


- what is an apportionment statement and is it normal that it would be provided this late in the process? it is dependant on the Completion date, so yes, has to be done last minute.
You are buying a leasehold flat? If yes, there is annual ground rent and service charges. The seller is responsibe for these up to the date of Completion (eg the 1st 250 days of the year). You are responsible after that date (eg the remaining 115 days of the year).
If the seller has paid the full year in advance (or perhaps half yearly, whatever) then a calculation is made of who owes who how much and this is apportioned between you and factored into the overall purchase price.


- seeing as the date is not ‘firm’ would I be foolhardy to expect that this completion date will come through? Yes. Sounds about 80% certain.....!

- and if so would I expect someone to have warned me by now or is it normal to just pass these dates by without much fanfare?

As you say!...............................................................

Kad_Williams

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My ‘agreed completion date’ (as per email from solicitor) is this Wednesday (it’s Monday today).
No Exchange so this is just a target date. It may change.

‘Agreed completion date’ is a quote from the solicitor rather than conjecture on my part. I knew when she sent it that it was not confirmed nor binding. It struck me that she might have wanted clear that up but hey ho.

I will be calling tomorrow to check that everything is in order (or not). Something tells me they might not contact me before Wednesday. And that’s just no good for my head.

Kad_Williams

So the update today (Tuesday) is:

- that a retention clause was been agreed to by me.
- I approved the survey report solicitors sent me.
- I sent additional bank statements showing transactions of purchase balance from current into savings account. Its almost like they didn't read the statements they asked for 2 weeks ago.... *shrug*
- That I've been told by my solicitor that lenders funds are supposed to be 'on their way'.

No confirmation that provided these responses are provided (they have been) we'll be able to proceed with completion. Weird.

I can only assume there is more to do! But damn they seem to like to keep you unsure.