Dummies guide to exchanging

[GorgeousLadyofWrestling]

DH and I are FTB - our offer was accepted in Aug and we instructed solicitors straight away. Vendor lives abroad so there’s no chain or reason to wait or anything. For a whole host of reasons including that we need to paint and put floors down before moving in, and because of timing with renting, we just need to complete ASAP because Christmas is approaching and if there’s any kind of delay, we face paying for two properties unnecessarily.

It’s wifey accepted it’s just that it’s my solicitors that’s slow. Vendor is keen to get it done and vendors solicitors are proactive.

Just spoken to my solicitors and they’re just doing the titles report. Realistically given how they work, I think probably it’s fair to expect a couple more weeks just to exchange. They have mentioned aiming to either complete on same day or a few days later.

So just so I know - so I don’t inadvertently hold anything up - what happens at exchange and complete? Do I need to do anything other then pay my deposit to my solicitor? Do I need to do anything with my mortgage lender? Buildings and life insurance is in place. Solicitor has mortgage offer - don’t I need to sign something with The bank?

Thanks in advance for helping a dummy

Your solicitor should have advised you of everything they of expect of you. If they haven’t, send the question you have posted here, to them!
If you want/need things to move faster, tell them how important timings are. Bear in mind they will be time limited on how quickly their searches and reports are turned around by the respective parties they request them from.

This seems like a ridiculously long time to get to exchange of contracts if the offer was accepted in August and there is no chain. Have your solicitors written to you with a report on the property? Have they conducted searches with the local authority and water authority?

You will need to sign the Contract, execute the Transfer Deed, execute the Mortgage Deed and the Stamp Duty Land Tax Return (they'll need either yours or DPs DOB and NINO for this). Is your solicitor local so you can go see them? They should provide you with a completion statement so you know how much you need for completion. On exchange they will require a 10% (of the purchase price) deposit, assuming you are buying with more than a 10% deposit. If it is less, the sellers will need to agree to a lower deposit and if you failed to complete you are still liable for the full 10% but your solicitor will explain all this to you and what happens if you fail to complete. Either that or you could exchange and complete the same day. Again solicitor can advise.

Where we’re up to is my solicitor is currently doing the titles report, so I think there’s a little while to go. All the searches have been done, we’ve signed the mortgage deeds and I think after the titles report is done...my solicitor sends enquires to vendors solicitors...? They seemed to think this might be done before Dec and then further to that, because we’re anxious about the time, that we could potentially complete on the same day as exchange.

Whenever I call them for an update, and then ask them to explain what that means, it’s as clear as mud. I get conflicting information from them about when to close the HTB ISA so that we ensure we get the bonus - I have been told both to close it and to not close it yet.

Without knowing the full details, it really should not be taking this long. Unless there were delays in instructions or legal issues for a sale from the seller (top of chain) to a FTB really should be done by now. But like I said I don't know the circumstances. I will give you a rough breakdown of how the conveyancing process goes in hopefully layman's terms. I hope it helps and doesn't make matters more confusing:

1. Sellers sols issue contract pack to buyers sols.
2. Buyers sols approve contract and raise enquires. Buyers to pay for searches and these are lodged at the relevent authorities.
3. Buyers sols report to the buyers on the contract pack and enquiries raised.
4. Sellers sols answer enquiries and buyers sols check they are satisfactory.
5. Search results come back and buyers sols raise enquiries with sellers sols if needed.
6. Buyers sols report to buyers on search results.
7. Mortgage offer received and reported to buyers on the terms etc of the mortgage.
8. Once all enquiries answered, buyers sols report to buyers on the enquiries and discuss any further issues if necessary.
9. Buyers attend sols to sign the contract, transfer etc and provide buyers with a completion statement and bank details for the transfer of deposit (it is imperative that you ensure that the bank details are that of the solicitors. If they provide them by email, ring them with a number you have got from a letter to ensure they are legitimate and you are not subject to a criminal gang email hacking - look up "conveyancing deposit fraud" for more info).

10. Buyer to go to bank to shut down ISA and bank to provide a closing statement to buyer - sometimes sent by post so check with your bank first. At the meeting with sols you need to sign a declaration to confirm your eligible for the bonus. 11. A date for completion is agreed and an exchange can take place. Buildings insurance needs to be in place for exchange and you'll need to provide a schedule of insurance to your solicitor. You'll need to give verbal or email confirmation to exchange on the day. 12. Assuming a week between exchange and completion - your solicitor will exchange and confirm to you that it is done. They'll then request funds for completion from both yourselves and your mortgage lender. They'll also request the ISA bonus (needs five clear working days!). If the money comes in after completion you have to return it to the government and you do not benefit from it so it is important to make sure they request funds. They also can't charge you more than £50+vat for dealing with the ISA element.

If you're not completing any time soon don't close your ISA but do check with your bank if you get a statement immediately or by post so you don't get caught short.

Forgot to add your solicitor needs the closing statement for the ISA and eligibility declaration to request the bonus. So if you're going into the office close the ISA first and take the statement with you. I would also keep a copy for your records.

MAKE SURE YOU GET CLARITY RE: the H2B isa. Shouting because I bought about 3 years ago when they had only been around for a while, and was advised wrongly, so I transferred the money to my main account and then closed it, meaning I wasn't eligible for the bonus. If you aren't getting any sense from the solicitor, check with your bank, as they should be used to it by now. Or google it, there should be some helpful guides. Make sure anything your sols/bank tell you is in email, so if anything goes wrong you can show them it's because you acted on their advice - I managed to claw back the H2B bonus I would have got by doing this.

Stop being so nice to your solicitors- still not being ready to go after four months and counting with ftb and an empty property is ridiculous! unless there are any major problems its perfectly do-able to go from offer-exchange in 6 weeks (know loads of people who have, even when they were at the bottom/middle of a chain) - send them a strongly worded letter saying you don't want to make a formal complaint but have lost out financially due solely to their unnecessary delays. You are paying them a lot of money to act (promptly!) for you!

Thanks both - so much more clarity than my solicitor has given me!

I am honestly not a pushover and very good at being assertive but every time I call, I just get met with this wall of “this is how long we take” line. There have been zero issues on either side so the only thing I can think is that they have loads of work and have taken on too many clients to provide an adequate service.

Solicitor had me sign and send back the HTB declaration form and I think I might go into a branch today just to ask on closing times and how long it takes / what’s their process.

We’re not based in the same city as our solicitor so how does that work with signing the contract?

I don't suppose you are a pushover but I would escalate a complaint. Ask to speak to the head of conveyancing to ascertain why the delay. Ask for the complaints procedure as well if you think you're being fobbed off.

They should provide you with everything by post which includes any advice and directions on how to sign and execute the documents correctly. You'll need an independent adult (18+) witness for the mortgage deed and transfer deed. A non-relative neighbour or friend/co-worker is fine. Then send everything back recorded delivery so you know they receive it.