What does completion mean?

Buying a house involves several stages, and completion marks the final step when you officially become the property owner. It’s the moment many homebuyers look forward to – when you get the keys and can call the place your own.

The road to completion can feel uncertain, especially for first-time buyers. There’s money to transfer, paperwork to finalise, and moving plans to coordinate. Things might not always go to plan; delays can happen, and issues can crop up at the last minute.

But understanding what completion involves can make the experience much smoother. Whether you’re buying your first home or you’re a seasoned mover, knowing what to expect helps you prepare properly and reduces stress on the day. This article explains what happens during completion, how to get ready for it, what can go wrong, and how to handle any hiccups along the way.

The Completion Process Explained

What Actually Happens on Completion Day?

Completion day is when ownership of the property legally transfers from the seller to you. The process usually follows these steps:

Your solicitor receives the mortgage funds from your lender (if you’re using a mortgage). They then transfer the full payment to the seller’s solicitor, who confirms receipt. Once the money has arrived, the seller’s solicitor authorises the release of the keys, often through the estate agent.

At this point, you legally own the property and can move in. This all happens during working hours, usually between 10am and 5pm on a weekday. The exact timing depends partly on how quickly the banks process the transfers, with CHAPS payments (the banking system used for property purchases) having specific cut-off times.

The Difference Between Exchange and Completion

People often mix up exchange and completion, but they’re two separate events:

Exchange of contracts happens when both parties sign and swap the legal agreements. At this point, the sale becomes legally binding, and you pay your deposit (usually 10%). Backing out after exchange can result in losing your deposit or even being sued.

Completion is the final stage when the remaining money is paid, and the property officially becomes yours. In England and Wales, there’s usually a gap of 1-2 weeks between exchange and completion, though they can happen on the same day.

In Scotland, the process works differently, with a system called “settlement” that often combines these steps.

Preparing for Completion Day

Financial Preparations

Getting your finances in order before completion day prevents last-minute panic. Your solicitor will send you a completion statement showing exactly what you need to pay, including:

• The remaining purchase price (minus your deposit)
• Solicitor’s fees
• Land Registry fees
• Any other outstanding costs

You’ll need to make sure the money is in your account ready to transfer, and be aware that some banks have limits on how much you can transfer in one day. Remember too that once you complete, you’ll need to pay Stamp Duty Land Tax within 14 days, which your solicitor usually handles.

Practical Arrangements

Besides the money, there are several practical things to sort out:

Building insurance needs to be in place from the day of completion, as you’re responsible for the property from that moment. This is usually a requirement of your mortgage too.

Plan your move carefully, keeping in mind that completion times can vary. Some people book their removals for the day after completion to avoid stress if there are delays. If you’re moving on completion day, try to arrange flexibility with your removals company.

Don’t forget to sort out utilities. Contact providers before completion to arrange for services to be transferred into your name from the day you move in. Setting up a Royal Mail redirection service is also helpful to ensure you don’t miss any important post.

Common Issues and How to Handle Them

While many completions go smoothly, problems can arise. Being aware of them helps you prepare:

Money transfer delays are common. The banking system can be slow, especially if there’s a property chain with multiple transfers happening on the same day. Always allow for potential delays when planning your move.

Property chains can cause complications. If one transaction in the chain is delayed, it can hold up all the others. If you’re part of a chain, keep in communication with your solicitor and estate agent throughout the day.

Last-minute property issues sometimes crop up. If you find problems with the property on completion day (like items removed that should have been left), document them and inform your solicitor immediately.

How a Mortgage Broker Can Help With Completion

A mortgage broker can be valuable during the completion process. They work with lenders daily and understand their systems and timelines.

Brokers can chase your lender to ensure mortgage funds are released on time – a common cause of completion delays. They’ll know which lenders might take longer to release funds and can advise you accordingly.

If issues arise, your broker can speak directly to the lender, often resolving problems more quickly than you could alone. They can also explain any mortgage-related paperwork and advise on your first mortgage payment, which usually happens the month after completion.

Conclusion: Next Steps After Completion

Once you’ve completed, there are a few final tasks to take care of:

Pay your Stamp Duty through your solicitor within 14 days to avoid penalties. Change the locks for security reasons – you don’t know who might have keys to the old locks.

Keep all your completion documents safe, including proof of payment, the title deeds (often held electronically now by the Land Registry), and your mortgage documentation.

Take meter readings as soon as you move in and inform the utility companies to ensure accurate bills. Finally, update your address everywhere – banks, employer, DVLA, electoral roll, and so on.

Completion day marks the end of your house buying journey and the beginning of life in your new home. While it can be stressful, good preparation and understanding of the process help ensure everything goes as smoothly as possible.