Property discussion

The normal period between exchange and completion is one to four weeks. But when you’re agreeing your completion date and given that the transaction is legally binding once exchange has taken place, it’s important to get the period right. The one to four week gap between exchange and completion is usually to allow all parties in the chain to make moving arrangements. Normally, your solicitor will have made sure all is in place contractually before exchange takes please. If you are using a mortgage you are advised to have this in place before exchange too. But the period between exchange and completion can be longer, so long as the extended period is agreed to by both parties. Where the contract period is longer than the norm, this is usually referred to as a delayed completion.

With most people it is the equity in your home that will be put towards a deposit to buy a new house. If the equity in your house has increased since you bought your home, you’ll be able to use it as a larger deposit. This will allow you to either secure a lower mortgage amount on your new house or to buy a more expensive home. Having a lower mortgage percentage typically reduces the mortgage rates, as this poses a lower risk to the lender. If you are looking to downsize and your equity is high enough compared to the value of your new house, you may even be able to buy a new home outright. If your equity is significantly large and you downsize in terms of house value and you buy a new house that has a value less than the total equity you release, you’ll have freed up some of your equity into cash.