Risks of big gap between exchange and completion?

RyanAnon

Hi all,

We're in a 4 property chain, we're FTB so didn't have a huge amount to do and were ready about 4 weeks (end of March) after starting the process. There were issues with a couple of the other houses in the chain which delayed things a little, but still seems to be happening in good time.

Our seller cannot complete for 4 weeks, so 9th June is the earliest completion date. 

Everything is 'almost' ready, expected to be ready in the next 1-2 days. 

My question is, do solicitors tend to exchange as soon as the whole chain is ready, or do they just hold off until closer to the completion date? (for our chain, this being w/c 9th June) 

If they wait, what's the risks of having a 4 week exchange-to-completion gap? I would've thought if all 4 parties are committed, there shouldn't be any issues in exchange ASAP to secure everything - or is it not as simple as this?

Thank you in advance!!

julicorn

It can be an advantage, because it gives you more time to get all your ducks in a row for the move itself. 
The risk is that something happens between exchange and completion which means that completion can't go ahead. That's why, during covid, they often did same day exchange and completion, to avoid lock-downs stopping moves. Theoretically, someone could also end up in a coma in hospital in those 4 weeks, etc. 

I would personally be up for a 4 week gap and don't see it as a problem, really. We were meant to have around that much for our last sale, but then exchange got delayed by 3 weeks more. I'd also say that being 'almost ready' isn't often the same as 'being ready in 1-2 days', but of course wish you and your chain all the best and minimal delays  

saajan_12

4 weeks isn't really a "long" completion - that was the norm not long ago. 
If you were saying 3+ months between then the risks do start to come into it, just because theres more time for stuff to go wrong eg job loss / mortgage offer withdrawn / roof falls in / rules changing etc. 

But at 4 weeks out, I'd be trying to get exchanged asap. Only then do you know that the purchase is definitely going ahead and can book removals, serve notice, etc. 

Albermarle

I think for peace of mind I would not want to delay exchanging contracts. Until that happens you can not really be sure what will happen.
The % of sales that go wrong between exchange and completion is very small.

DullGreyGuy

RyanAnon said:

Hi all,

We're in a 4 property chain, we're FTB so didn't have a huge amount to do and were ready about 4 weeks (end of March) after starting the process. There were issues with a couple of the other houses in the chain which delayed things a little, but still seems to be happening in good time.

Our seller cannot complete for 4 weeks, so 9th June is the earliest completion date. 

Everything is 'almost' ready, expected to be ready in the next 1-2 days. 

My question is, do solicitors tend to exchange as soon as the whole chain is ready, or do they just hold off until closer to the completion date? (for our chain, this being w/c 9th June) 

If they wait, what's the risks of having a 4 week exchange-to-completion gap? I would've thought if all 4 parties are committed, there shouldn't be any issues in exchange ASAP to secure everything - or is it not as simple as this?

Thank you in advance!!

Solicitors follow their clients instructions. 

The risks of not exchanging is something happens such that one party changes their mind... eg they get fired so can't afford the new larger mortgage, someone gets gazumped etc 

The risk of exchanging early is the exact mirror of things happening to you or the property as you are bound to buy it so if it burns down or if you get fired from your job etc you are still obliged to continue

jazzyja

Your whole conveyance took 4 weeks?! That’s good! Currently in the process, hope mine is as quick 🤣 
I think I’d be ok waiting 4 weeks. Gives more time to declutter, pack etc etc. can even visit the property measure up etc if possible 

RyanAnon

Thanks all for your replies! 

I would love to exchange in the next week or so with a view to completing w/c 9th June (when all people in chain can do) - just wasn't sure if solicitors always tried to keep it to 1-2 weeks! Fingers crossed we can get it done 

RyanAnon

jazzyja said:

Your whole conveyance took 4 weeks?! That’s good! Currently in the process, hope mine is as quick 🤣 
I think I’d be ok waiting 4 weeks. Gives more time to declutter, pack etc etc. can even visit the property measure up etc if possible 

Yes! In fairness all searches came back so quick and no issues etc were found on the surveys etc.

I was (and still am in terms of their communication) a little sketchy on the solicitors we're using but I can't knock them for how quickly they got us ready! 
 
Only problem is the waiting around whilst everyone else is getting ready - I've felt like an absolute pest chasing for updates