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2
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
- Suitable for first time buyers, repeat movers and cash buyers
- Time to organise - buildings insurance, removals and packing once you know you have exchanged
- Time to draw down mortgage - with a 3 to 5 day lead time to draw down a mortgage this is an ample amount of time to draw down the mortgage in time for completion.
- Less stressful - More time to organise always means less time to stress especially as the exchange of contracts has legally bound both the seller and the buyer.
- More likely the chain will agree - with so many other parties involved in the chain a 1 to 2 week time should suit everyone. Find out how a property chain works by clicking here.
Cons
- You have to wait 1 to 2 weeks to move in - there are little downsides to a 1 to 2 week period between exchange and completion as it is the most common time frame to complete after exchange of contracts.
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?
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3
1 to 2 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
- Suitable for first time buyers who rent with a 2 month notice - you can limit the time you have paying for rent and also paying your mortgage (it is always good to have a week between completion and moving out of your rental so you can make good any reapirs the rental needs to protect the repayment of your rental deposit.
- Time to organise - buildings insurance, removals and packing once you know you have exchanged
- Time to draw down mortgage
- Less stressful
Cons
- Less likely the chain will agree - the majority of people in a chain want to have a 1 to 2 week period between exchange and completion so you may struggle to get the chain to agree to a 1 to 2 month period.
- You have to wait 1 to 2 months to move in
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4
Exchange with a future notice to complete
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
- Suitable for cash buyers - with no mortgage there is no concern over arranging mortgage funds in time for a future completion date.
- Time to organise - buildings insurance, removals and packing once you know you have exchanged
Cons
- Short time to organise your mortgage in time for completion - you'll need to have a mortgage offer in place before you can exchange contracts, however most mortgage offers expire after 6 months. This could leave you exposed to not being able to get a mortgage when completion is served.
- You have no control over when the property is built - new build properties often over run and it can be frustrating waiting for the property to be built.
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