Completion Day – The Complete Guide for First-Time Buyers
Mortgages, huh, who needs them? As it turns out, most of us (unfortunately). Yet this necessity doesn’t make putting up with delays and red tape any easier. Here we explore completion day – what to expect, and how you can plan ahead for nasty surprises.
What is the ‘completion’ of a mortgage?
Completing on a mortgage is when your solicitor finally sends the money to the seller’s solicitors – this will typically be the purchase price minus the deposit that you’ve already paid during the exchange of contracts. Once completion goes through, you can then collect your keys.
What day do most completions take place?
Friday is the most popular day for property completions. This is owing to the weekend – and the time it can provide for moving items from A to B. Because of how popular Fridays are, you may find that the costs of moving are slightly higher.
What issues can arise on completion day?
Buying a new property and moving home is incredibly expensive. The last thing you want is a problem to arise at the very last minute. Yet there are a few relatively common issues that crop up come completion time, namely:
- No mortgage money – Sometimes solicitors request their clients’ mortgage company to send the funds on completion day, which can result in you waiting (and waiting) for the mortgage company to release your funds. You can avoid this by asking your solicitors to request the money in advance before the day of completion.
- No completion money – Haven’t yet sent your completion money? While some buyers delay this until completion day, it’s a bad, bad idea. Always ensure your solicitor is set and ready to go with your completion funds in good time, including stamp duty.
- A lack of signed and pre-prepared paperwork – The transfer documents must be signed and prepared if the completion is to go through without a hitch, so if you’re selling a property and are yet to receive your transfer document you should chase your solicitor up ASAP.
- No balance received from your buyers – Not receiving the funds from the other side of the chain can result in you being unable to complete on the purchase of your new home. To reduce the risk of this happening your solicitor should confirm with your buyer’s solicitor that they’re ready to complete by contacting them the day before.
That’s it – now that you know what’ll happen on the big day you should be all set to move with your fingers crossed that your solicitor has everything in order for your completion. Now all that’s left to do is organise the logistics of your move. Speaking of which, it may be time to discover just how affordable our York home removals service is.