Gap between exchange and completion

User4search

HI guys completion is scheduled for 30th June. I transferred deposit to solicitor already  and bank will release funds on Monday. 
 Seller is ready to exchange. Should i exchange now and completion on 30th June? What are risks?

TBG01

The only risk from your point of view is you'd be tied into completing on the 30th if you exchange right now.

Not exchanging now means you have 8 days to make sure you're still in a position to buy.

On the other hand the seller has 8 days to possibly back out of the sale also.

User4search

I see,  I m just nervous.  I transferred deposit already and bank will release funds on Monday as per message from bank. 

MaryNB

Nothing unusual about 8 days. Lenders usually require 5 working days notice to release mortgage funds so now would be a good time to exchange. They can do it in less but not much point in delaying it if you're ready to go now.

Make sure you have enough time do send over your 10% deposit if at the bottom of the chain. I did mine by faster payments and due to the daily online limit I had to do it over 2 days. 

ETA: Posted that before I saw your more recent post.

Just make sure you both have movers booked for the 30th. Don't want to exchange and then panic when you realise everyone's booked up. 

daveyjp

A week between exchange and completion used to be quite normal.  No issue with it as once exchanged the sale will move to completion.

My neighbours have just moved, they exchanged last Wednesday, completed on Thursday.

User4search

Thanks for inputs.  I am in rental property now. I am not planning to move in immediately as I am going to do some renovation work before then. Selller has booked movers it seems. 

I read few people prefer both exchange and completion same day so i have confused. If 1 week gap is normal then I will instruct my solicitor to exchange now. I want to buy this house . I dont see any concern for now or no job risk as such. 

saajan_12

User4search said:

I read few people prefer both exchange and completion same day so i have confused. If 1 week gap is normal then I will instruct my solicitor to exchange now. I want to buy this house . I dont see any concern for now or no job risk as such. 

Both ways have pros & cons.
Main reason to Exchange & Complete same day is to avoid being tied in to the purchase before the lender is - ie if you exchange, then lose job / circumstances change / lender withdraws mortgage offer, then you can't physically complete but are contractually liable to complete or pay damages. 

Main reason to have a gap is so you can plan, book in removals, arrange broadband, book tradespeople, get address changed, etc before the last minute.

Depends which you (and the rest of your chain) prefer. 

hippocrates1

If you need to meet stamp duty holiday I would exchange and complete same day as if it doesn’t happen in time you can negotiate down the cost of stamp duty but if you exchange and fail to complete in June  you will owe stamp duty.

User4search

Ok I m first time buyer so not paying much stampduty anyway 

User4search

I asked solicitor to exchange contracts yesterday,  but I just been told thatbthey have been waiting on mortgage redemption statement from sellers bank so they will try to exchange tomorrow once received.  Is this big problem? 

Irishpearce26

User4search said:

I asked solicitor to exchange contracts yesterday,  but I just been told thatbthey have been waiting on mortgage redemption statement from sellers bank so they will try to exchange tomorrow once received.  Is this big problem? 

No its just the lender telling the seller how much they have to pay back, any early exit fees on their existing mortgage product etc. Usually faxed over and wont affect anything.