Exchange date

jarv81178

So we are ready to exchange which means exchange of contracts that says we own our new place etc down the chain but does exchange day also mean release of mortgage monies ?

Slithery

No. It's possible to exchange weeks before completion. Exchange doesn't mean that you now own the property, just that you have a legal contract to purchase it.

Funds will only be released in time for completion.

saajan_12

jarv81178 said:

So we are ready to exchange which means exchange of contracts that says we own our new place etc down the chain but does exchange day also mean release of mortgage monies ?

Exchange = Your solicitor and the seller's solicitor mutually swap signed contracts agreeing that you will buy / vendor will sell the property for X price on Y date. Your solicitor transfers a deposit (typically 10%) to be held by the vendor's solicitor in case you fail to complete. 

Completion = Lender release money to solicitor, who combines with your remaining deposit and sends to vendor's solicitor. They confirm they receive the money and seller gives you keys. They also transfer the title into your name in the background (which may take longer in practice). 

user1977

I don't think you are ready to exchange if you don't yet understand what the contract says or does.

canaldumidi

As posts above. But additionally what do you mean by "down the chain"?

Do you mean you are ready to Exchange and so are all the other buyers/sellers in the chain?

Or what?

eddddy

jarv81178 said:

So we are ready to exchange which means exchange of contracts that says we own our new place etc down the chain but does exchange day also mean release of mortgage monies ?

In simple terms, before exchange of contracts, you (and/or the seller) can change your mind about buying/selling.

But once you've exchanged contracts, you (and the seller) are legally bound to buy/sell on the specified completion day - you can no longer change your mind. And you usually pay a 10% deposit on exchange of contracts.

You actually own the property on completion day - so that's when you can move in. You will pay the remaining 90% on that day - which will include funds from your mortgage lender.

LHW99

eddddy said:

jarv81178 said:

So we are ready to exchange which means exchange of contracts that says we own our new place etc down the chain but does exchange day also mean release of mortgage monies ?

In simple terms, before exchange of contracts, you (and/or the seller) can change your mind about buying/selling.

But once you've exchanged contracts, you (and the seller) are legally bound to buy/sell on the specified completion day - you can no longer change your mind. And you usually pay a 10% deposit on exchange of contracts.

You actually own the property on completion day - so that's when you can move in. You will pay the remaining 90% on that day - which will include funds from your mortgage lender.

But I think need to arrange buildings insurance from date of exchange.

eddddy

LHW99 said:

eddddy said:

jarv81178 said:

So we are ready to exchange which means exchange of contracts that says we own our new place etc down the chain but does exchange day also mean release of mortgage monies ?

In simple terms, before exchange of contracts, you (and/or the seller) can change your mind about buying/selling.

But once you've exchanged contracts, you (and the seller) are legally bound to buy/sell on the specified completion day - you can no longer change your mind. And you usually pay a 10% deposit on exchange of contracts.

You actually own the property on completion day - so that's when you can move in. You will pay the remaining 90% on that day - which will include funds from your mortgage lender.

But I think need to arrange buildings insurance from date of exchange.

In very general terms, it depends whether it's a house or a flat.  If it's a flat (in England/Wales) it's probably leasehold, and the lease usually says the freeholder arranges buildings insurance - but there are exceptions.