Buying a leasehold flat has been the single worst experience of my life

somerandomusername

https://forums.moneysavingexpert.com/discussion/comment/81891962#Comment_81891962

This is the entire reason I'm trying to explain why it's going to take a week or so to actually get in the door. People are saying I can exchange, complete and move in on the same day. I'm trying to explain that it's Friday tomorrow, banks are closed, the bank also has a 5 day holding period on the money, meaning they won't even start the transfer to the seller before the 5 day holding period is up.

So the absolute soonest would be the about 9 days…

RelievedSheff

https://forums.moneysavingexpert.com/discussion/comment/81891994#Comment_81891994

I think you need to get your solicitors to explain the situation to you again. You are not understanding it.

You can not move in until the sale has completed and the vendor has their money in the bank.

Exchange of contract is not the same as completion. Exchange of contracts is when both parties agree to the sale, exchange contracts and agree a date for completion. At this stage you are legally obliged to carry through the sale but you do not yet own the property.

Exchange of contracts usually happens about a week or two before completion.

You do not move into the property until after completion regardless of when exchange takes place.

user1977

https://forums.moneysavingexpert.com/discussion/comment/81891994#Comment_81891994

There's no "holding period", you're getting confused about that too. The banks quote a minimum period of notice they need to release the mortgage funds to your solicitor, typically five working days (though in practice they can usually do it much quicker, often next day). So I guess what your solicitor possibly means is they're requesting the funds but don't want to commit to completing any faster than five working days later.

BungalowBel

I have bought several properties in England and every one of them has been exchange and complete on the same day. However, all the properties were empty and there was no chain above or below. Possibly this makes a difference?

The ones I have sold have all had a week in between exchange and completion. (no chain there either).

somerandomusername

https://forums.moneysavingexpert.com/discussion/comment/81892202#Comment_81892202

I am chain free and so is the vendor, I am exchanging and completing on the same day, but I cannot take possession of the property until the funds have been released to the vendor. This is where the delay is coming from I think.

user1977

https://forums.moneysavingexpert.com/discussion/comment/81892449#Comment_81892449

I'm not sure whether you're still confused about something, but the completion day is when both the funds and the keys change hands.

RelievedSheff

https://forums.moneysavingexpert.com/discussion/comment/81892449#Comment_81892449

Speak to your solicitors. You are paying them to explain this to you.

You are still confused about the process. So get it explained again by the people you are paying to do this.

EssexHebridean

you definitely need to go back and request a clearer explanation of the process here. Have you had the report on title from the solicitor yet?

Don’t waste your solicitor’s time by asking about moving in before completion - it won’t be able to happen, it’s a pointless question.

Exchanging and completing on the same day is a “simultaneous exchange and completion” - completion is only agreed between the solicitors once the money has been sent by yours and received by the other side - I thought I and others explained this earlier in the thread to be honest. The reason for it not usually being ideal is that if it does go wrong (and they do- it’s far from unusual for a simultaneous to be problematic at the last minute) it can leave people homeless. You certainly need to plan for a worst case scenario here - and should really have been advised of that.

Usually the purchasers solicitor requests mortgage funds from the lender at exchange of contracts - assuming there is a week between exchange and completion. With a tighter timescale the funds are requested ahead of the proposed exchange date, but one frequent complication here is that those funds once received can’t be held on to indefinitely, many lenders demand that if completion doesn’t happen on the planned day or day after the funds are to be returned, and re-requested, which obviously comes with its own delay. So a simultaneous exchange/completion that slips more than a day can often mean it cannot then happen for a further week due to that need to go through the process of requesting the funds again - does that make sense?

For clarity, again:

Exchange of contracts is the point at which you are legally contracted to purchase, and the seller is legally contracted to sell, the property.
Completion is the point at which money has changed hands and the keys will be released to you- that is the point where you can move in.