advice needed re exchanging on property

[Macey78]

Hello
Much needed advice needed please. We have just signed contracts on a property we are buying. A couple of weeks ago found out that the couple buying our house are getting a buy to let mortgage and therefore need to complete by the 31st in order to avoid the new charges being brought in. I am no way ready am going to call round removal companies tomorrow.... But on the 31st my brother is getting married so cannot move on that day so will need to be the 30th! Is this doable. What else do I need to be doing!

[MrsSteptoe]

So you have a week to pack up? Is that right? Have you exchanged on the sale now?

[CocktailQueen]

But surely you agreed on a completion date when you exchanged. If you didn't, then. Complete whenever you want. The buyers will lose out if they don't complete then.

[MrsSteptoe]

I don't think you can complete without an exchange date, can you? You have to specify a stop date, don't you, even if it's "on or before by mutual consent"?

[MrsSteptoe]

SORRY - I meant, I don't think you can excxhange without a completion date. Wrong way round.

[wowfudge]

I suggest you have a chat with your solicitor and see whether they think you will be able to exchange and complete by then. It is usually not a good idea to exchange and complete on the same day, but as long as exchange is a couple of days beforehand that's fine.

Pay for packing as well as removals - it really takes the stress out of things and means you won't have a frantic weekend packing. Do ring for quotes and ask whether they have availability for removals on 30th. I suspect, because it will be very busy at the end of March due to the stamp duty changes, you may struggle to find someone, but I may be wrong.

[Spickle]

I am a conveyancing assistant and we are being hounded by clients anxious to complete by the end of March for the same reason.

It totally depends on what is still outstanding on all the transactions in the chain. For example what is the position with your seller - are they also purchasing an onward property? Bear in mind we have Easter so that's two working days less to get the legal work done. You may have signed contracts but it doesn't mean you're ready. Ask your solicitor what they are waiting on before exchange - it may not be anything you can control.

Now the bad bit - we now have clients pulling out of purchases when it becomes clear that the transaction will not complete in time before the new stamp duty, which is horrible to the others in the chain, but investors may choose not to continue with their purchase rather than be hit with expensive stamp duty fees.

[Spickle]

I'm assuming you haven't exchanged yet because otherwise a completion date would have already been agreed....

[MrsSteptoe]

Since there's a couple of conveyancers on the thread - would it be normal to allow a buyer to exchange contracts without having exchanged on their sale? Of course, I'm assuming that their purchase is dependent on their sale, which it isn't, necessarily, but I'm curious nonetheless. Surely ensuring that they've exchanged on their sale is part of ensuring that they're in a position to complete on their purchase?

[MrsSteptoe]

Yes, Spickle, that was my thought, but it seemed odd to have committed to a purchase by exchanging without having exchanged on the sale - unless the purchase is not dependent on the sale, of course.

OP, I am not sure what your question was - was it a practical question of "what do I need to do to get organised to move out by 30/3"? i.e. book removers etc.?

[MrsSteptoe]

Sorry for the multiple posts, and sorry for all the questions about where you are in the process - always want to have the facts straight!
A friend did recommend the checklist on Moveme.com - have a look there. Otherwise, off hte top of my head:

Get boxes from your removals company - normal boxes, book boxes, wardrobe boxes if you want to transfer your clothes on hangers rather than put them in suitcases.
Any items that need special packing (e.g. paintings, sculptures, clocks, mirrors)? Anything that needs specialist removal (e.g. a piano)? Make a list.
Organise a parking suspension for the morning you move out for your removals lorry, and for the other end. (Or check that your movers will do it.)
Read your meters (on the day you leave, obvs).
Take out a buildings insurance policy on your purchase - once you've exchanged, you are obliged to complete the sale, even if the house burns down. Hence, it's up to you to ensure that it's insured.
Organise mail forwarding - I think Royal Mail need three days' notice.

[Macey78]

So the people buying our house are buying as a buy to let. The house we are buying the owner is vacating the property move in with family.

I'm feeling really stressed as when we put the offer indie the house we are buying the seller assured us that she wanted to complete the process asap but for reasons unknown has really fm dragged her feet up until a few weeks ago.

Out estate agents did not tell
Us that our buyers were purchasing our home as a buy to let until a couple of weeks ago. We were told they are first time buyers and not in a chain. I just feel
That we have been messed about a little. Had everyone been honest with us the. I would have ensured to push for things to happen weeks ago.

So our current position is that the top and bottom of the chain is ready just waiting on us!

Apologies if I I not get the terminology right as really get confused with exchanging and completing! And haven't moved in 18 years and it seemed a lot easier back then.

[Spickle]

MrsSteptoe - No not normal to exchange contracts if a related transaction is not exchanged simultaneously. Most transactions involving a sale and purchase are called "related". This means that exchange won't take place unless the whole chain are ready. You can, of course, choose the transaction to be independent of each other - this involves one party breaking the chain to move into temporary accommodation to allow the rest of the chain to complete, but that would be the client's choice.

[Spickle]

Macey78 - have you exchanged?

[Macey78]

Signed the contracts today and sent them back to the solicitor.

[Spickle]

That doesn't mean you've exchanged!

[MrsSteptoe]

It's a stressful time, Macey!
Good luck with it all - I listed some things that you'll need to do above, I'll post more if I think of them. But assuming you have exchanged, get your movers booked as a top priority, because as others have said, it's unusually busy because of the SDLT changes.

[Macey78]

Thanks Mea Steptoe

[NoSquirrels]

Doesn't necessarily sound as if you have exchanged yet.

If you haven't exchanged contracts on either your sale or your purchase yet, then you can't agree a completion date.

Everyone will be wanting to be done by 31st, so conveyancers & solicitors will be extra busy. It may not be possible. The only way you'll find out is to call your solicitor and ask.

You need to call removal companies, but again you may well be pushing it to try to achieve this in a week.

[firesidechat]

They haven't exchanged. Signing the contracts is just a stage along the way and you would know if you had exchanged because a completion date would have been agreed.

[Thelwell]

If your buyer is genuinely a first-time buyer and no other property is owned in either UK or abroad, then they are not liable to pat the additional 3% even if they deploy your property as a BTL. The government policy document is crystal clear on this point.

Unfortunately, if they have been misinformed by their EA or mortgage broker, they may be pushing for zero need...I would expect informed conveyancing solicitor to be aware of this point, but they won't usually give tax advice.

I'd suggest you check this out before worrying...sounds like you haven't even exchanged yet and you certainly shouldn't book removals until then.

[GiddyOnZackHunt]

We had about 9 days between us signing and the rest of the chain getting themselves to the point of exchange. You need to contact removal companies to get their availability.
If you can exchange with a completion date of 31st you could see if you can be packed and loaded on the 30th and keep stuff stored until the Monday. You could ask your buyers for a contribution to the storage costs.

[Macey78]

Thanks everyone,

definitely sounds like we haven't exchanged. It's difficult talking to our solicitor as she takes a couple a bit of time to get back to us.

Our buyers: don't know if they are first time buyers as agent has not been clear but definitely want the process to finish before the stamp duty rise comes into force.

If we lose the house we are buying, i think we shall resign to staying where we are. The local market has reached to a level where we are priced out! Therefore will tell myself that we have a home and are lucky to have one.

Can I be doing Something useful to help the process. So I can't really book removals until we exchange, won't want to redirect mail till then too.

[NoSquirrels]

Most useful Something you can be doing is to call and hassle the solicitor hourly for an update on where you are in the process, and where everyone else is too!

[Macey78]

Thanks no squirrels