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

What happens if stamp duty changes between exchange and completion?

Stamp Duty Land Tax is payable at the prevailing rate on the day of completion, which means if the SDLT changes up or down between exchange or completion, then you pay the new rate. Stamp Duty Land Tax where rates change to cost you more tax are normally budgeted for in advance, so the change is known before you exchange contracts. One of the largest changes was the implementation of the second home stamp duty for additional home owners that was effective from the 1st April 2016 and this was known after it was stated in the November budget. Whereas, with SDLT changes where there are potential savings, such as the SDLT relief in the September mini-budget in 2022, the stamp duty relief took effect with immediate effect. For anyone who has already exchanged you will pay the new lower rate of SDLT on completion. What does HMRC say? SDLTM08100 - Scope: When is Stamp Duty Land Tax (SDLT) chargeable Completion means completion of the land transaction proposed, between the same parties, in substantial conformity with the contract. Source: SDLT Manual 08100

You might think all the work is done by exchange, however, here is a complete run through on what happens between exchange and completion and who needs to do what and when.

What happens between exchange and completion?

by:

Andrew Boast

Created on:

25/11/2022

(Last Updated: 15/11/2023)

Read by:

1,199

3 min read

What happens between exchange and completion depends on who you are in the chain. The seller, buyer and their respective solicitors all have jobs to do that need to be finalised before completion. We have a to-do list for everyone involved so you know what everyone needs to do.

What does the buyer do between exchange and completion?

Take out your Home Insurance (required for all freeholds from exchange).
Hand in your notice to your landlord. Read more on - When do I hand in my notice?.
Confirm completion date with your removals company.
Send your completion money to your solicitor the day before completion.
Organise a redirection for your post through Royal Mail.

What does the buyer's solicitor do between exchange and completion?

Send executed contract of exchange and 10% deposit to the seller's solicitor.
Send the Certificate of Title to the mortgage lender to drawdown mortgage funds the day before completion.
Draft completion statement and send to buyer. Read more - What is in a purchase completion statement?
Send completion monies to seller's solicitor.
Confirm once completion has taken place and keys have been released.
Pay SDLT, register property at Land Registry. Read more about - What happens after you complete?

What does the seller do between exchange and completion?

Pack up possessions in property, ready to move out.
Organise Royal Mail postal redirection for the date of completion.
Release keys to selling agent or the buyer once confirmed by the seller's solicitor.
Vacate the property and leave it empty on completion. Read more - Seller left personal property in house - what can you legally do?
Take utility meter readings and give to providers.

What does the seller's solicitor do between exchange and completion?

Receive 10% deposit from buyer's solicitor.
Send Replies to Requisitions to buyer's solicitor.
Request mortgage redemption statements from mortgage lender/s
(if leasehold) Request up to date service charge and ground rent statements and send completion statement to buyer's solicitor.
Draft completion statement and send to seller.
Receive completion monies and pay off any mortgages.
Call the buyer's solicitor or estate agent to release the keys.

Exchange of Contracts

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Completion Day Checklist

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Pre-Exchange Checklist

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Written by: Andrew Boast

Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.

Reviewed by: Caragh Bailey

Caragh is an excellent writer in her own right as well as an accomplished copy editor for both fiction and non-fiction books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey and mortgage related articles.

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