Exchange and complete on the same day...what are the implications?

SuzySu

Thanks Dander....I'm scared of phoning the sols as I don't want them to charge us any more than the basic cost of this sale (we have virtually no equity once mortgage, 2nd charge, EA fee, HIP and sols are paid off). I don't think he can tell us anything about the date as he is still waiting for a response from the buyers solicitor.

TBH I feel inadequate talking to solicitors and other, obviously clever, people.

uhuru_2

Check the details of the quote they gave you. I've always used solicitors who set a standard cost for the sale / purchase so that an extra phone call won't cost extra. Obviously there could be extra costs incurred for unforseen events but a chasing phone call shouldn't do that.

Also, don't feel inadequate talking to them, you are paying them to do a job and they should do that job for you and answer all your questions, no matter how minor! Get phoning them and ask them what all the implications are of exchanging and completing on the same day in your specific situation.

neverdespairgirl

SuzySu wrote: »

TBH I feel inadequate talking to solicitors and other, obviously clever, people.

Don't be! They aren't doing you a favour, they are doing a job in return for money.

chachi

I would wholeheartedly recommend exchanging ahead of completion, even if by a few days ...

I couldn't imagine E&C on same day in this economic climate.

We're midst selling (exchanged mid-May, completing 03Jul) and I'm still sweating even though they've signed the contract

PasturesNew

The WORST case scenario for exchange/completion on the same day is:

You've taken a day off work, you've spent the last month chucking out rubbish, packing things up. You've booked the removals van. Everybody's put themselves out to help you, you're standing in the living room with ALL your things in boxes. Removals men are taking the stuff out to the van. They're half way through and the phone rings .... buyer's pulled out.

Now what?

Once they've completed the new owner owns it. So it's not like you can then get up off your sofa and start packing. THEN you have to be out as they're on their way round to move in.

It's OK if you are buying and have an overlap, it's OK if you are selling and it's empty.

The risk is if you are living in the property and so are packing/moving out when you still don't actually have that final 100% guarantee it's going to be OK.

Of course, most of the time it would be. But how lucky do you feel?

SuzySu

Thanks to all who have replied to my thread. After taking your advice, I phoned the solicitor this afternoon who agrees that exchange first with a gap before completion is best. I think he thought we had not paid/would not be able to pay the mortgage and 2nd charge next month so he was concerned that the interest would mount up and eat into our (very) small surplus.

This site is fab and you are all great. It is wonderful knowing if you have a query, there is always someone who has been there/experienced it and knows what to advise.

Richard_Webster

(we have virtually no equity once mortgage, 2nd charge, EA fee, HIP and sols are paid off).

If OP has scarcely any equity in the property it may be a case of getting settlement figures and then checking there is enough money before committing to an exchange.

As these figures change from day to day you might have to think of a date a week or two ahead and then ask for the figures for that date.

Like the funny lenders finding random excuses for not sending money the money I mentioned in my previous post there could be a problem actually getting a figure from a 2nd mortgage lender. So it might be OP's solicitor doesn't want to drop her in it by exchanging and then finding there isn't enough money to pay everything out of the sale proceeds.

ChocolateLover_3

The last person who wanted to buy my flat did this ( ex and complete same day ) we moved out on the 29th Feb as he asked ,3 months later I was STILL waiting,and then he very calmly pulled out ,:mad: :mad: :mad: .
Never again !!!!