Time between exchange and completion

TomCruiseFan

Hi,

I am tenant now and I need to give two months notice to terminate my tenancy.

Currently, I am on the process of conveyancing and we haven’t exchanged the contract (I expect more time needed yet).

Agent said it is usually 5 days between the exchange and completion, but I wonder how it could be that short when the buyer (like me) is a tenant and needs to terminate the tenancy.

Is there any good solution to minimise the time between the exchange and completion, whilst I avoid crossover period of paying rent and the mortgage?

What was your experience?

subjecttocontract

There is no standard period between exchange & completion, it can happen on the same day or a few weeks in between. It depends what suits all parties. It's really negotiable but I doubt most people would agree to 2 months. Pay no attention to the estate agent, talk to your solicitor, explain your situation and tell him/her what suits you. I doubt you will be able to avoid paying both rent & mortgage for a short period.

daveyjp

Getting all dates to align can be difficult so some payment of rent and mortgage may be unavoidable and needs fo be budgeted for.

Completing before end of tenancy gives some breathing space to move properties. The general agreed approach is 7 days between exchange and completion, but there are many reasons why this may change, especially in a chain.

mebu60

Have you asked your landlord if you can provide shorter notice?

There is a huge benefit to running your tenancy past the completion date, particularly if the properties are relatively close, significantly reduces the stress involved.

eddddy

Exchange and completion dates are negotiable.

Are you at the bottom of a (long) chain? If so, everyone in the chain has to agree to the same exchange and completion dates.

You might get a situation where…

• You say you want 8 weeks between exchange and completion
• Somebody else says they want 5 days between exchange and completion
• Somebody else says they want 4 weeks between exchange and completion - to give them time to book time off work, arrange a removal company, arrange childcare, etc
• Somebody else says they're on holiday for a particular week, so can't complete in that week
• Somebody else says their Aunt is staying with them for 5 days so they can't complete around that time
• Somebody else says they have some deadlines at work, so can't complete around that time
• etc, etc

So it can sometimes be difficult to get everyone to compromise and agree.

So some estate agents will try to get everyone to agree by being assertive - e.g. forcefully tell everyone that they must complete 5 days after exchange, in the hope that nobody will argue.

gwynlas

Prior to Covid I seem to remember that there was generally four weeks between exchange and completion and this is what my current neighbour appears to be doing as house already vacated but new owner still absent.

New builds often have long exchange dates so it miight suit others in the chain.

An overlap is inevitable but if you don't ask you don't get and you could probably carry out any redecorating you wish to do prior to moving in

Shedman

Don't forget that under the Renters Rights Act your 2 months notice is effective from the rent payment or the day before, so not necessarily the day you submit it, so you need to be careful about the date of exchange as, if it's timed wrong, you could be up to 3 months notice e.g, if your rent payment day is 5th of month then if you exchanged on 6th December and don't give notice until you've exchanged (which is wise) then your notice period wouldn't start until 4 Jan and would end on 4th March so ideally you want to exchange in that circumstance around the 1st or 2nd of month to keep the notice period to as close to 2 months as poss.

Unfortunately it's one of the unintended consequences of the RRA that I don't think was properly considered when they decided on two months notice to be given by tenants.

My stepdaughter was fortunate that the sellers of the bungalow she is buying were moving back abroad and they wanted a long gap between exchange and completion so they could give notice at work and sort out shipping so were happy (nay insistent) with 2 months and, as we managed to get exchange a week before her rent day, she was only just over the 2 months notice period and that extra week overlap will come in handy to avoid moving out and in on same day, getting the flat clean, sorting out internet etc

MysteryMe

Whilst you wouldn't want to be paying rent for a couple of months, view the overlap as a bonus. Unlike most you will have the chance to properly clean, decorate, change the carpets if need be etc which are all a lot more difficult if you are an existing home owners and moving in same day as moving out of old property.

Flugelhorn

At one time it was always 4 weeks - this was pre internet and everything had to go in the post etc - then it dropped down to much shorter periods of times with people getting over twiitched that anythng more than a week was a disaster

2020 we had sellers insisting on 8 weeks as they hadn't found a rental yet ….. covid happened - I wouild never recommend 8 weeks

RelievedSheff

Our two previous purchases we have exchanged and completed on the same day but they were both no chain purchases.

Our most recent purchase this year was exchange on Monday and complete on the Friday.

Tabieth

I bought my home while I was renting and there was 2-weeks between exchange and completion. But my house needed work before I could move in so I actually had two months of paying both rent and mortgage. It was tough but I knew it would happen and planned accordingly.