Can You Exchange Contracts with a Delayed Completion?

Exchanging Contracts with Delayed Completion 

Yes, it is possible to negotiate a delayed completion date with the seller while still exchanging contracts and paying the deposit upfront. This arrangement is commonly referred to as a "delayed completion" or "deferred completion" agreement. 

Note that most lenders wouldn't allow you to buy the property while the current vendor is still living there as they typically insist on there being vacant possession on completion. 

The main thing when considering delayed or deferred completion is that you need to check how long each lender's mortgage offer is valid for, as this may slightly restrict your choice of lenders. Some mortgage offers only last for 3 months, before you'd have to reselect a new product, which could involve additional costs. 

Here's how delayed completion works: 

1. Agreement with the seller - you would negotiate with the seller to agree on an exchange of contracts promptly, allowing you to secure the property by paying the deposit upfront. However, you would request a delayed completion date, typically set to occur several months in the future 
2. Exchange of contracts - once both parties agree on the terms, you would proceed with the exchange of contracts, during which you would pay the deposit to the seller's solicitor or a holding account  
3. Delayed completion date - the completion date would be specified in the contract as the date when the remaining balance of the purchase price is due, and you take ownership of the property. This date would be set to occur 6 months in the future, as per your request  
4. Mortgage arrangements - in the interim period between the exchange of contracts and the completion date, you can arrange your mortgage financing. You would typically apply for the mortgage closer to the completion date to ensure that the mortgage offer is valid when the funds are needed  
5. Legal and financial considerations - it's essential to ensure that the contract clearly outlines the terms of the delayed completion agreement, including any conditions or provisions related to the delay. Additionally, you should consult with your solicitor or conveyancer to ensure that the contract meets all legal requirements and protects your interests  
6. Communication and cooperation - throughout the process, maintaining open communication with the seller and all relevant parties is crucial to ensure that everyone is aligned with the agreed-upon timeline and that any issues or concerns are addressed promptly  

By negotiating a delayed completion date, you can secure the property with your deposit while allowing yourself sufficient time to arrange your mortgage financing and prepare for the move- n date 6 months later. Be sure to consult with the solicitor to ensure that the arrangement is structured correctly and that all legal requirements are met.

Submit an enquiry or call us on 0330 433 2927 and we'll organise for one of our mortgage advisers to contact you to have a look in more detail at the mortgage options open to you.