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Original poster

Completion failure

29 replies

NIsense · 07/04/2021 17:06

Hi.
I am in a 3 person chain midway. I'm heading towards exchange very soon I think. Now I'm doing my own head in thinking about completion problems and potential failure. Can anybody advise me how rare failing to complete is? I'm a born worrier so please forgive me for this query. I shouldn't have listened to Phil Spencer's blog!

OP posts:
nicknamehelp · 07/04/2021 17:09

really rare to not complete after exchange.

BlueCherryBlossom · 07/04/2021 17:13

Vanishingly rare I think.

Issues with completion probably not uncommon (keys very late etc) but failure to complete after exchange isn't something I'd worry about. The financial costs of failing to complete after exchange are hefty.

lalafafa · 07/04/2021 17:28

Very, very rare. If it did happen you would be compensated by the buyer.

Original poster
NIsense · 07/04/2021 17:48

Reassuring so far

OP posts:
BlueCherryBlossom · 07/04/2021 18:06

@NIsense

Reassuring so far

No one is going to tell you any differently.

BlueCherryBlossom · 07/04/2021 18:10

It's exchange you need to worry about, I wonder if you are a bit uncertain of the process?

Until exchange of contracts anyone can pull out with no consequences. Once exchange is done the rest (completion) is basically a formality.

Original poster
NIsense · 07/04/2021 19:14

@BlueCherryBlossom

It's exchange you need to worry about, I wonder if you are a bit uncertain of the process?

Until exchange of contracts anyone can pull out with no consequences. Once exchange is done the rest (completion) is basically a formality.

Yes you wondered correctly. I am a bit unsure of exchange tbh
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Donotgogentle · 07/04/2021 19:20

There’s reason to be worried up until exchange, we had a buyer pull out just before and another demanding £40k off sale price. But it’s very rare for people to pull out after exchanging because of the financial consequences.

Dazedandconfused10 · 07/04/2021 19:22

Worked in the industry for a long time and only had it happen once. Well over 10 years ago.

CaramelCup · 07/04/2021 19:28

A third fell through in January - before exchange.

(www.google.co.uk/amp/s/news.sky.com/story/amp/almost-a-third-of-house-sales-fall-through-as-stamp-duty-deadline-nears-12208623)

But that’s before exchange. Any number of things can cause that. Our buyers buyer couldn’t get mortgage in the end (for example) so we had to get a new buyer.

Once you have exchanged contacts the ‘penalty’ would be so high. You are then contractually bound to complete. So it’s very rare.

Original poster
NIsense · 07/04/2021 19:49

@CaramelCup

A third fell through in January - before exchange.

(www.google.co.uk/amp/s/news.sky.com/story/amp/almost-a-third-of-house-sales-fall-through-as-stamp-duty-deadline-nears-12208623)

But that’s before exchange. Any number of things can cause that. Our buyers buyer couldn’t get mortgage in the end (for example) so we had to get a new buyer.

Once you have exchanged contacts the ‘penalty’ would be so high. You are then contractually bound to complete. So it’s very rare.

Thanks. Not worried about before exchange issues although my vendors solicitors are painfully slow so it is dragging on a bit. Wish to hell I could have a yarn with someone on here by phone to get this fear out of my system.
OP posts:
CaramelCup · 08/04/2021 02:06

It’s tough. You have to grit your teeth and keep everything crossed. House buying/selling can be brutal! We’re in month 7 since accepting offer on ours/having offer accepted and the chain becoming compete. Due to various reasons it’s taken ages. (Buyer pulling out etc)

Changingwiththetimes · 08/04/2021 03:21

There needs to be financial consequences for pulling out before exchange, and a clear timeline. Contingencies of course, but just changing your mind should incur a cost, and definite dates for surveys and mortgage confirmation would keep it less stressful. It's such a crap system here.

pilates · 08/04/2021 05:48

Yes as others have said rare once exchanged. More nerve racking up to exchange though.

ElinoristhenewEnid · 08/04/2021 07:08

My buyer completed a day late due to useless solicitor going on leave and failing to ask for mortgage funds ( along with other failings)

Thankfully I had already moved out and house empty so it cost me 10 p to extend house insurance for another day. I did not charge my buyer anything - she was as upset as me.

Very very rare not to complete at all.

4PawsGood · 08/04/2021 07:12

Do you have a date for exchange or completion? I find it gets things going to agree one. I’d ask your solicitor about that. They won’t want to, they like to pull it out of a hat as a surprise, but you can say you’d like to have a date to work towards.

Is it the packing and so on you’re worried about?

4PawsGood · 08/04/2021 07:13

Oh and insist on a gap of a week (or two) between exchange and completion. That way it can’t all fall apart at the last minute.

Roselilly36 · 08/04/2021 07:34

Very unusual, try not to worry.

We have recently downsized, so I know how stressful moving can be. Not something I would want to do again in a hurry.

We had just under two weeks from exchange to completion, we started packing a few weeks before exchange and kept our fingers crossed that we would actually be moving.

We got there & you will too OP. Very best wishes.

Original poster
NIsense · 08/04/2021 07:47

@4PawsGood

Do you have a date for exchange or completion? I find it gets things going to agree one. I’d ask your solicitor about that. They won’t want to, they like to pull it out of a hat as a surprise, but you can say you’d like to have a date to work towards.

Is it the packing and so on you’re worried about?

Hi and thank you. I dont have a date for exchange, only a very tentative ballpark completion estimate. The thing that worries me the most is getting removals to suit everyone in the chain.
OP posts:
Roselilly36 · 08/04/2021 08:38

Removals are tricky to organise I agree, our removals wouldn’t book in a date until we had exchanged, they are extra busy too with the SDLT extension. As soon as we exchanged the first call I made was to the removal company, lucky for us they still had the date we needed available. Have some other removals firms on standby just in case OP. Good luck.

Roselilly36 · 08/04/2021 08:49

The other thing I would add, we opted for a mid week completion, just in case anything went wrong, a friend who moved regularly gave us this tip, after money didn’t exchange on time many years ago and they were unable to access their new home until the Monday. Easier for everyone to access removers and solicitors who are usually busy Fridays.

Original poster
NIsense · 08/04/2021 09:04

@Roselilly36

The other thing I would add, we opted for a mid week completion, just in case anything went wrong, a friend who moved regularly gave us this tip, after money didn’t exchange on time many years ago and they were unable to access their new home until the Monday. Easier for everyone to access removers and solicitors who are usually busy Fridays.
Thank you. I will aim for a mid week completion or at least avoid Friday. If everyone in the chain is agreeable that is!
OP posts:
Anticyclone · 08/04/2021 09:38

We had completion delayed by 2 days due to our totally incompetent buyer and his idiot solicitor. He was a landlord so totally uninvested in the house, and somehow between him and his solicitor an important mortgage document had not been signed, which only came to light on completion day!

Luckily we had a superb solicitor who fought very hard to get all our costs paid by the buyer - was over £2K in hotel costs, 2 different removal companies, and temporary storage costs.

It was stressful at the time, but everything worked out in the end and we laugh about it now. And I got the impression from my solicitor that this was a very rare event!

I would say if your buyer is committed to the house and their solicitor is even vaguely competent you won't have a problem.

Roselilly36 · 08/04/2021 09:42

We insisted on a Thursday completion, the others in chain weren’t delighted, but our purchase was the top of the chain, 200miles away, we didn’t complete until gone 4pm. Very stressful day, that would have been even worse on a Friday, with my nerves in tatters by then!

Original poster
NIsense · 08/04/2021 09:55

@Anticyclone

We had completion delayed by 2 days due to our totally incompetent buyer and his idiot solicitor. He was a landlord so totally uninvested in the house, and somehow between him and his solicitor an important mortgage document had not been signed, which only came to light on completion day!

Luckily we had a superb solicitor who fought very hard to get all our costs paid by the buyer - was over £2K in hotel costs, 2 different removal companies, and temporary storage costs.

It was stressful at the time, but everything worked out in the end and we laugh about it now. And I got the impression from my solicitor that this was a very rare event!

I would say if your buyer is committed to the house and their solicitor is even vaguely competent you won't have a problem.

Thanks for your reply. I had previously considered getting cheap storage in place just in case I have to dump stuff in the event of a completion delay. Now I'm definitely going to get storage based on this!
OP posts: