How Long Between Exchange and Completion? Key Timeline Explained

The typical time between exchange of contracts and completion for a property sale in the UK is usually 1 to 4 weeks, although it can vary based on the specific circumstances of the transaction. Here’s an overview of what happens during this period and factors that may affect the timeline:

What Happens Between Exchange and Completion?

• Exchange of Contracts: At this stage, the sale of the property becomes legally binding. Both the buyer and seller sign contracts, and the buyer usually pays a deposit (usually 10% of the property price). After exchange, both parties are legally committed to completing the sale.

• Completion: This is when the final balance of the property price is transferred, and the ownership of the property is legally transferred from the seller to the buyer. The buyer receives the keys, and the seller vacates the property.

Factors Affecting the Time Between Exchange and Completion

1. Buyer and Seller Agreement

   • The timeline between exchange and completion is often mutually agreed upon by the buyer and seller. A typical window is 1 to 2 weeks, but both parties can request a longer or shorter gap depending on their circumstances.

2. Mortgage Lender Requirements

   • Mortgage lenders usually require a few days to a week to prepare the funds for completion after exchange. This can affect the timeline if additional time is needed to release the funds.

3. Personal Circumstances

   • Relocation needs, availability of moving services, or aligning the completion date with other transactions (such as selling another property) may require more time.
   • Some buyers or sellers may prefer a longer gap to manage personal commitments, while others may want a shorter window for a quicker transaction.

4. New Build Properties

   • When purchasing a new build, the gap between exchange and completion could be longer, as completion may be delayed until the property is fully constructed. In such cases, exchange often happens months before completion.

5. Chain Dependency

   • If either party is involved in a property chain, the completion date may need to align with other transactions, potentially extending the timeline between exchange and completion.

6. Holiday Periods

   • If the exchange happens around holidays (such as Christmas or bank holidays), the completion date may need to be delayed slightly to accommodate for business closures.

Can You Exchange and Complete on the Same Day?

While uncommon, it is possible to exchange and complete on the same day, particularly if both parties are eager to close the transaction quickly. This can be beneficial if you need to move swiftly but can be risky, as there is little room to address last-minute issues. Typically, it’s recommended to allow at least a few days between exchange and completion to ensure that everything goes smoothly.

Conclusion

• Typical timeline: 1 to 4 weeks between exchange and completion.
• Factors: Timeline is influenced by buyer/seller agreements, mortgage lender requirements, personal circumstances, new builds, property chains, and holiday periods.

If you need advice or assistance with the process, Fraser Bond can help guide you through from exchange to completion, ensuring a smooth transaction.