According to recent research by the BBC’s ‘You & Yours’ programme, demand in the housing market has put high levels of pressure on conveyancing solicitors trying to meet property ownership transfer deadlines.
As a result, it is increasingly likely that, instead of exchanging contracts several weeks in advance of completion dates, which is normal practice, both transactions can happen on the same day if there are delays in completing all the legal documentation.
However, this doesn’t necessarily provide either seller or buyer with the security to enable them to plan a move and commit to all the costs involved in organising a removals company and essential service transfers (i.e. gas/electricity) etc. It also means that completion dates could slip or even that deals could fall through at the last minute, leaving either party facing extra charges for having to reorganise removal companies, and also be liable for all their expenses to date, or even become temporarily homeless.
Consequently, it is advisable to liaise closely with your legal advisers, asking for advance notification of any potential delays, making it clear that you are unwilling to commit to exchanging and completing a transaction on the same day should this not be in your best interests! Such clarity will also help mortgage providers to meet buyers’ financial expectations, and in the event of a hiccup after exchanging contracts, it is likely that you could recover some of your costs in reorganising a move.
Speak to our team at Just Mortgage Brokers who would be pleased to assist you through the most appropriate advice to suit your personal circumstances and ambitions.