Timeline for Property purchases, Finance and Settlements
With Christmas coming and many of our clients looking to purchase properties, we’ve been helping them to formulate realistic timeframes into their offers, to make things work.
Normally, finance approvals can take 14 to 21 days, but with the current COVID issues, we have found that this is stretching to 28 days and sometimes more.
Settlement dates for property purchases generally depend on:
- The formal Finance Approval
- Allowing time for documents to be prepared by the banks
- Councils and other statutory bodies providing rates information and insurance.
Therefore, we normally allow 21 days to 28 days for settlement. This has proven successful for most client deals.
So, our general recommendation is to offer terms as follows:
- Finance Approval – 28 days
- Settlement – 28 days after formal finance approval
However, with Christmas and New Year break approaching fast, many banks will move to skeleton staff.
So, if there is a contract entered into after 31 October 2020, we recommend that the timeframes are:
- Finance Approval – 28 days (which will allow up to the end of November)
- Settlement – the later of 28 days after Finance Approval and 15 January 2021
Please also note that AAG’s office will be closing for the Christmas and New Year break on Tuesday 22 December and re-opening on Tuesday 12 January 2021.
We appreciate your understanding and support in working with these dates and timeframes, to assist us to satisfy your requirements during the busy Christmas and New Year period.
Please contact us at firstname.lastname@example.org if you are about to make an offer on a new property.
If you have any questions about the above dates and timeframes – we’re here to help!