Exchange and Complete the same day... Is it risky?

Lews_100

Hi,

I'm currently selling my apartment and moving to a new build home. Everything should of have been completed around the 10th April but due to Covid has seen delays. Cut a long story short everything was back in place and I was given a completion date of the 26th June. Only Tuesday Morning my solicitors confirmed the exchange of contracts had not gone ahead yet. When i questioned this I was told it was due to some extra time it was taking for the other solicitors to prepare the file. 

I got an update yesterday afternoon to say they would now be completing a simultaneous exchange and completion. I'm not an expert in this but should I be wary of this and are there any risks? I'm worried Friday will come when I've got all my moving arrangements in place and we get delayed for whatever reason. 

Thanks

[Deleted User]

It carries different risks. If it doesn't happen, you're left unpacking.

But if you exchange first and your mortgage gets pulled before completion, you're left obliged to buy a house you can't afford.

davidmcn

Solicitors are generally recommending simultaneous exchange/completion while things are a bit unpredictable at the moment to reduce the risks i.e. of something happening between exchange and completion which would cause one of the parties to breach the contract. Yes, there's a risk that things you've arranged in advance for the move don't happen. Obviously everyone is going to be reasonably confident it can happen for the planned day, but not so much that they want to bet e.g. 10% of the house price on it.

amnblog

It's not uncommon, and your Solicitors, if competent, will not put you at risk. Remember, it is only a paperwork exercise. 
Generally, there is a gap between the two events to allow buyers and vendors to plan to move knowing that the legal commitment it there.

Lews_100

Thanks everyone.

Good points that it's better to be unpacking a few boxes than left in an awful situation. 
The solicitor did seem happy everything was in place that needed to be.  

NatalieAGC

the gap will be for the payment from mortgage lenders, some take days some take hours. in the past I have always aimed for complete and exchange same day and I will do so again on the next move.