1 to 2 weeks between exchange and completion
This is the ideal time between exchange and completion, giving both seller and buyer to organise themselves once they know they are legally bound to complete after exchanging contracts. Remember, prior to exchanging there are no guarantees either party will complete.
Pros
|
Cons
|
|
|
1 to 3 months between exchange and completion
This length of time is predominantly requested by first time buyers looking to tie in their rental notice period with their exchange. The formal notice period for assured tenancy rentals is 2 months. If you are tempted to hand in your rental notice before exchanging contracts then read this - Made Homeless After Handing Notice to Landlord
Pros
|
Cons
|
|
|
Exchange contracts without a completion date
When you buy a new build property you have to exchange contracts within 28 days after reserving the property. You are given an estimated time when the property will be built. The final build date can be delayed, however once the property has been signed off as completed by building control, the developers serves notice on you and you'll need to complete within 2 weeks.
Pros
|
Cons
|
|
|
Frequently Asked Questions
Why is there a gap between exchange and completion?
There is a gap between exchange and completion because of logistics and the conveyancing process itself. Right up until exchange either the buyer or seller could pull out from the transaction which would mean if you had been busy packing your stuff into boxes you'd need to start unpacking again; you have another 3 to 6 months of house hunting and the conveyancing process all over again.
The gap between exchange and completion can be reduced if:
- The property is vacant
- You are using removal companies for packing
- You are a cash buyer
Just click to download for FREE. No personal details required. Don't exchange and complete without checking everything off.
What can go wrong between exchange and completion?
With so much paperwork and red tape before exchange you would think that the risk between exchange and completion would be minimal, however there are risks and these became even more profound during the Coronavirus outbreak in 2020. Here is what can go wrong between exchange and completion:
- Buyer's loses job - if you lose your job then you must report this to your mortgage lender as it may effect their mortgage offer to you. If your mortgage offer is rescinded due to a change in your job then you won't be able to afford to complete.
- Seller changes their mind - this can happen and whilst the seller will have to pay the buyer's legal costs and other remedies, the buyer is left without their new home.
- Fall ill or Accident - this was one of the issues during the Coronavirus outbreak. Where either the seller or buyer become ill or have an accident that stops them from completing.
You can read more here on, What happens if you fail to complete? and How can you protect yourself from failing to complete?.
What's the difference between exchange and completion?
What is exchange?
Exchange of contracts is the point in the conveyancing process where the buyer and the seller become legally bound to complete the transfer of the title between each other. You can read more about - Exchanging contracts and Can your pull out after exchange of contracts?
What is completion?
Completion is the day when the balance of the purchase price is paid to the seller's solicitor, keys/access is provided to the buyer and the ownership transfers from the seller to the buyer. You can read more about - What happens on the day of completion?
FREE To Use – Progress Saved – To-Do List – Tips and Guides