Redemption figure and exchanging

berrybum

Help please
I feel like I'm going round in circles with my solicitors.  We're selling our house and planning to buy a new one, the original plan was to exchange on both at the same time but the plot hasn't become reservable yet so we will now just be exchanging and completing on our current house and moving into rented/parents house.

We said to the solicitors from day one that we wanted to exchange as early as possible and had already agreed a longer completion date of 27th of May which the buyer is happy with.  The solicitors now seem to be dragging their feet and nothing has happened since early Feb.  We've signed everything and they keep saying they're waiting to hear from our bank (First Direct).  We called First Direct and they said they sent the redemption figure weeks ago and said all they need to do is call up and request a new one.  I told the solicitors this and then they replied a few weeks later to say that First Direct can only give an interim figure at the moment which will be replaced with a final figure at completion.

I called First Direct (FD) again and they confirmed this is the case, they can only give the figure as of today but it won't change by much between now and completion.  The solicitors keep saying they're waiting to hear from First Direct but according to the bank they've given everything they've been requested.  Can you exchange on an interim figure?  FD said they wouldn't be able to give a final figure until closer to the time and we're keen to exchange as soon as we can to give certainty to both sides.  I've read you exchange on an estimate which gets updated before completion but just wanted to check this.  It feels like the solicitors just want to wait until mid May to exchange but this is against our instruction all the way through as we want to ensure we're in the best position when a house comes on the market and don't want to be left in uncertainty until mid May.

Thanks in advance!
Holly

user1977

You don't need a redemption figure at all to exchange, it's up to you whether you're comfortable that at completion you'll be able to cover the redemption amount required. You can in theory exchange months before completion, at a stage when nobody can give you an accurate redemption figure.

TBagpuss

They should be able to. A redemption figure will always say whet the figure will be as a t a certain date and that if completion will be later a new figure will be produced, but it will also typically say that what the daily interest is so you can calculate what it's likely to be at a later date.

It may be worth you putting your instructions in writing rather than speaking by phone.

e.g. expressly state that you are instructing them to exchange now with completion to take place on 27.05.22, that First Direct have confirmed that they have sent a current redemption figure and you recognise that this is not final and that an up to date figure will have to be requested in May, that you understand from your previous correspondence / conversations with them that everything else needed to allow exchange to happen has ben received but that if that is not the case you need them to confirm what is outstanding and whether it is something which is required from you, from your buyers, or from a third party. 

In your letter say that you are concerned as you have been clear in your instructions from the outset that you wanted an early exchange so it's been clear from the beginning that there would be a longer than normal gap between exchange and completion and at no time was it suggested that this was a problem, so you are not clear why it now appears to be an issue for them.

If you don't get a response then look at your terms of business and see what it says about their complaints process and follow that.

It may be that it's simply that the person dealing with your case sees it a s a low priority as you are not close to completion, or it may be that they are not communicating effectively and there is something else causing a delay, but if you raise it in writing and nd ask for a written reply then that ought to clarify things, and if not, raising a complaint is likely to mean that a different person looks at it and can hopefully address the issue (or explain more clearly what the problem is)

Have you spoke to the agents - s it possible that the delay is with the buyers? 

berrybum

Thank you both, that's really helpful.  I spoke to the agents a few weeks back and everything seems fine and buyer has asked to buy some white goods separately by cash so all seems fine from their side (and they were aware and comfortable from the outset about the longer than normal gap between exchange and completion).  I will follow up with the solicitors today.

Thank you again, this has been invaluable!