Exchange and completion on the same day?

Exchange and completion on the same day?

11:02 AM, 22nd June 2021, About 3 months ago 2

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Hi, We are approaching the end of the Stamp duty holiday up to 500K and I have a property that is legally ready to exchange.  However, we are having an issue on the approach to exchange and completion.

My challenge is that in case this moves to July, I won’t be doing it because of the extra tax and won’t make financial sense. Weird thing is that the property I am buying was supposed to be chain-free, but we suddenly learnt that my seller lied to us, and he is actually buying a property as well. He wants to do an exchange asap and complete on 28th.

My solicitor advised that in case this does not happen on 28th, we need to give them 10 days notice, and we may end up paying extra tax. So, I am pushing the chain to exchange and complete on the same day, but they are pushing back. I assume I should not be the only person having this problem, and looking for some creative solutions?

Such as, we can offer that we are happy to pay their removal company cancellation fees in case we do not buy on the day agreed?

Anything to make this easier for a small chain with 4 properties?

John



Comments

by Ian Narbeth

11:16 AM, 22nd June 2021, About 3 months ago

John
I don't have all the facts but on the basis that your seller needs to complete by 30th June, there is a strategy that might work.
Insist that he exchange contracts with you now with completion fixed for a date in June, failing which you will withdraw from the purchase. Also the contract to provide that the seller will pay as liquidated damages the extra SDLT you have to pay if he fails to complete by 30th June. You can then

Once contracts are exchanged your SDLT saving will be locked in. The seller will have to move out and go into temporary accommodation if his purchase is delayed.

If he resists then say that you might be interested at a lower price (at least the SDLT difference extra) after 1st July.

by Chris Bradley

11:47 AM, 26th June 2021, About 3 months ago

Every property I have ever bought and sold has always exchanged and completed on the same day. Some were in a chain some were not. Don't think I'd feel comfortable now exchanging days before completion


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