Advice for Exchanging and completing on the same day

2020firsttimebuyer2020

Hi, we are first time buyers and have bought a new build which is complete
our solicitor called us this week and said the developer would like to complete on 24th april, she also said we will be exchanging and completing on the same day. We are using part of the deposit from my help to buy isa so i have now closed down my account, and await the closing statement in the post.  

I have seen a few cases online where people have advised against exchanging and completing on the same day, however we are not in a chain and are moving into an unoccupied property, therefore is this still an issue for us?

LoveSauce

No issue. Go for it.

Officer_Dibble

As long as you're aware that the developer can impose new terms (or a higher price...though very unlikely at the moment) up until the day itself and you're willing to pull out if they do so, and your mortgage company are aware and happy with it. And as long as you're not planning on actually moving anything in on the day. I'd be wondering why they need to be on the same day, there are good reasons why they're generally not. Are the developers trying to hurry it through because they're well aware what direction house prices are going to be heading in?

davidmcn

Officer_Dibble said:

I'd be wondering why they need to be on the same day, there are good reasons why they're generally not. Are the developers trying to hurry it through because they're well aware what direction house prices are going to be heading in?

General advice at the moment is to do it on the same day in case something CV-19-related balls things up between exchange and completion, leaving someone in breach of contract. Probably more in the OP's interest to do it simultaneously than the developer's.

2020firsttimebuyer2020

davidmcn said:

Officer_Dibble said:

I'd be wondering why they need to be on the same day, there are good reasons why they're generally not. Are the developers trying to hurry it through because they're well aware what direction house prices are going to be heading in?

General advice at the moment is to do it on the same day in case something CV-19-related balls things up between exchange and completion, leaving someone in breach of contract. Probably more in the OP's interest to do it simultaneously than the developer's.

Thank you! I did think it might be due to the Coronavirus why exchange and completion is taking place on the same day. 

Our mortgage is with barclays, will our solicitor have already requested the funds from them before completion day to allow time for the funds to arrive?

PJBRFC

We are selling our house and are exchanging and completing simultaneously on Friday. Our solicitors said that's the only way they are pushing transactions through at the moment due to Covid-19. 

mrsmsebastian

Same here exchanging and completing on Thursday.

carefullycautious

Do you wait for the money to go into the solicitors account or your own before completing when it is done on the same day?

davidmcn

carefullycautious said:

Do you wait for the money to go into the solicitors account or your own before completing when it is done on the same day?

It's not your money until completion has happened, so the solicitors don't transfer it to you until after completion.

davidmcn

2020firsttimebuyer2020 said:

davidmcn said:

Officer_Dibble said:

I'd be wondering why they need to be on the same day, there are good reasons why they're generally not. Are the developers trying to hurry it through because they're well aware what direction house prices are going to be heading in?

General advice at the moment is to do it on the same day in case something CV-19-related balls things up between exchange and completion, leaving someone in breach of contract. Probably more in the OP's interest to do it simultaneously than the developer's.

Thank you! I did think it might be due to the Coronavirus why exchange and completion is taking place on the same day. 

Our mortgage is with barclays, will our solicitor have already requested the funds from them before completion day to allow time for the funds to arrive?

Yes, they'll have needed to have requested it in advance. I mean, in theory you can request it first thing on the same day, but that's cutting it a bit fine to say the least!

TuppenceWorth

OP.
It's now the third week for me since solicitor requested the funds from Barclays. They have been chasing  it regularly but just getting messed around. The last response was "everything is up in the air so no guarantee re any time scales". So do expect significant delays.