Help! Upper chain requires 2 weeks between exchange and completion

Benh86123

I asked them how likely and she said she could count on 1 hand the number of times it had happened.

I know deep down we would probably be okay but if anything did happen and we lost our deposit we would never be in a position to buy a property again.

In normal circumstances, if the upper chain wasn't moving into a property that had no gas and electric it wouldn't be an issue as we could just exchange and complete whenever and it feels like all the pressure is on us to take the risk (however small it is) when surely a compromise from the chain above would make things alot easier.

Thanks.

housebuyer143

Benh86123 said:

I asked them how likely and she said she could count on 1 hand the number of times it had happened.

I know deep down we would probably be okay but if anything did happen and we lost our deposit we would never be in a position to buy a property again.

In normal circumstances, if the upper chain wasn't moving into a property that had no gas and electric it wouldn't be an issue as we could just exchange and complete whenever and it feels like all the pressure is on us to take the risk (however small it is) when surely a compromise from the chain above would make things alot easier.

Thanks.

Unfortunately that's just how it is for everyone in a chain. The only way to mitigate it is to exchange and complete the same day but that's not viable for a chain and people in it because the risk of things going wrong is so high. 
My first attempt at exchange and completion the same day resulted it in completely failing and then having to wait two week before we could try again. If we were in a chain it could have meant having no where to live. 

Rest assured the process is normal and it's normal to worry. If something went wrong you don't just forfeit your deposit right away, you would be able to try and rectify it if possible. At the end of the day, everyone wants the transactions to compete 

Benh86123

housebuyer143 said:

Benh86123 said:

I asked them how likely and she said she could count on 1 hand the number of times it had happened.

I know deep down we would probably be okay but if anything did happen and we lost our deposit we would never be in a position to buy a property again.

In normal circumstances, if the upper chain wasn't moving into a property that had no gas and electric it wouldn't be an issue as we could just exchange and complete whenever and it feels like all the pressure is on us to take the risk (however small it is) when surely a compromise from the chain above would make things alot easier.

Thanks.

Unfortunately that's just how it is for everyone in a chain. The only way to mitigate it is to exchange and complete the same day but that's not viable for a chain and people in it because the risk of things going wrong is so high. 
My first attempt at exchange and completion the same day resulted it in completely failing and then having to wait two week before we could try again. If we were in a chain it could have meant having no where to live. 

Rest assured the process is normal and it's normal to worry. If something went wrong you don't just forfeit your deposit right away, you would be able to try and rectify it if possible. At the end of the day, everyone wants the transactions to compete 

Thank you.

So what would happen if we went ahead before 'approval of funds from Santander' and something did go wrong? What would lead us to losing our deposit?

Is it relatively normal to proceed with exchange before the said approval?

Thanks,

Ben

housebuyer143

Benh86123 said:

housebuyer143 said:

Benh86123 said:

I asked them how likely and she said she could count on 1 hand the number of times it had happened.

I know deep down we would probably be okay but if anything did happen and we lost our deposit we would never be in a position to buy a property again.

In normal circumstances, if the upper chain wasn't moving into a property that had no gas and electric it wouldn't be an issue as we could just exchange and complete whenever and it feels like all the pressure is on us to take the risk (however small it is) when surely a compromise from the chain above would make things alot easier.

Thanks.

Unfortunately that's just how it is for everyone in a chain. The only way to mitigate it is to exchange and complete the same day but that's not viable for a chain and people in it because the risk of things going wrong is so high. 
My first attempt at exchange and completion the same day resulted it in completely failing and then having to wait two week before we could try again. If we were in a chain it could have meant having no where to live. 

Rest assured the process is normal and it's normal to worry. If something went wrong you don't just forfeit your deposit right away, you would be able to try and rectify it if possible. At the end of the day, everyone wants the transactions to compete 

Thank you.

So what would happen if we went ahead before 'approval of funds from Santander' and something did go wrong? What would lead us to losing our deposit?

Is it relatively normal to proceed with exchange before the said approval?

Thanks,

Ben

I'm not sure what this approval is as my solicitor just requested to draw down the funds when she wanted it. 
You would only lose your deposit if you couldn't complete, as in gave up buying it completely. 

Can you see if your solicitor can get approval without 7 days notice? I'm sure they can do it faster if urgent. Alternatively can you suggest exchange for 23rd and then complete 2 weeks later? 

user1977

Benh86123 said:

housebuyer143 said:

Benh86123 said:

I asked them how likely and she said she could count on 1 hand the number of times it had happened.

I know deep down we would probably be okay but if anything did happen and we lost our deposit we would never be in a position to buy a property again.

In normal circumstances, if the upper chain wasn't moving into a property that had no gas and electric it wouldn't be an issue as we could just exchange and complete whenever and it feels like all the pressure is on us to take the risk (however small it is) when surely a compromise from the chain above would make things alot easier.

Thanks.

Unfortunately that's just how it is for everyone in a chain. The only way to mitigate it is to exchange and complete the same day but that's not viable for a chain and people in it because the risk of things going wrong is so high. 
My first attempt at exchange and completion the same day resulted it in completely failing and then having to wait two week before we could try again. If we were in a chain it could have meant having no where to live. 

Rest assured the process is normal and it's normal to worry. If something went wrong you don't just forfeit your deposit right away, you would be able to try and rectify it if possible. At the end of the day, everyone wants the transactions to compete 

So what would happen if we went ahead before 'approval of funds from Santander' and something did go wrong? What would lead us to losing our deposit?

Yes, but as already discussed above, why would "approval of funds" be any more binding than the original mortgage offer? It doesn't mean much more than "yes, we confirm we haven't withdrawn the offer and forgotten to tell you".

If the lender later changes its mind about lending (or can't because Santander suddenly go bust or something equally bizarre) then you'd be in the same position.

Is it relatively normal to proceed with exchange before the said approval?

Yes, it's completely normal, and as I've already explained above, this only started when people started getting paranoid during lockdown.

Bear in mind that it is impossible to eliminate all risks in the process - you're never going to buy a house if you are only wanting to proceed with zero possible risk.

Ksw3

You would potentially lose your exchange deposit not the deposit used alongside your mortgage. 

1 week between exchange and completion is the norm. Your solicitor is needlessly scaring you. As long as you don't lose your job or take a massive loan, you will be ok. 

Benh86123

What's the difference between exchange deposit and mortgage deposit? We've only paid 1 deposit and that was 40k! We've got no issues with our employment and nothing has or will change with our financial situation.

Thanks

user1977

Benh86123 said:

What's the difference between exchange deposit and mortgage deposit?

Has your solicitor not (yet) explained to you what the contract means?

Benh86123

Nope. We've signed and returned the contracts and there was nothing mentioned about the difference between the 2 deposits.

housebuyer143

Benh86123 said:

Nope. We've signed and returned the contracts and there was nothing mentioned about the difference between the 2 deposits.

The contract will state the exchange deposit, normally 10%. That's the money that goes to the other side at exchange. The rest is safety kept at your solicitors. 
As others have said, I don't think your solicitor is doing a great job explaining things to you and is scaring you for no reason. Mortgage offers don't just get withdrawn and most solicitors don'y request the money without having exchanged first.