By the end of this chapter you’ll understand:

✓ What completion is

✓ What does completion mean for your mortgage

✓ What happens on the day of completion

Estimated Reading Time: 10 minutes

After weeks, or perhaps even months, of planning, paperwork and anticipation, completion day has finally arrived. This is the day you officially become the owner of your new home. For many buyers, it’s one of the most exciting days of their lives. You’ve spent time choosing your home, arranging your mortgage, working with your solicitor and watching your purchase progress. Now everything comes together. Although completion day is exciting, much of what happens actually takes place behind the scenes between your solicitor, your mortgage lender and the developer. Let’s take a look at what happens.

What is completion?

Completion is the point at which the ownership of the property legally transfers from the developer to you. Once completion has taken place, the following happens:

• You officially become the legal owner of the property.
• The purchase money has been transferred.
• The developer releases the keys.
• You can move into your new home.

This is the final legal step in the buying process.

How will I know when completion is happening?

With many new build homes, you’ll receive updates throughout the construction process. When your property is almost ready, the developer will usually issue what’s known as a Notice to Complete. This lets your solicitor know that the property is ready for legal completion and confirms the time frame for the purchase to be completed. Your solicitor will then begin making the final arrangements with your mortgage lender and the developer’s solicitor. Your mortgage adviser will also make sure everything remains on track from the lender’s perspective.

What happens on completion day?

On the morning of completion, your solicitor sends the purchase money to the developer’s solicitor. This money is made up of your mortgage funds, your deposit (already paid) and any remaining balance you’ve provided. Once the developer’s solicitor confirms they have received the money, completion takes place. The developer is then authorised to release the keys to your new home.

Congratulations…you are now a homeowner!

Once legal completion has taken place, the developer’s sales office will normally contact you to arrange key collection. Many buyers collect their keys directly from the development. During your visit, you may be shown around your property, introduced to important features such as the heating system and ventilation controls, and provided with useful information about your new home. Some developers will also provide a homeowner’s pack containing:

• Appliance manuals.
• Warranty documents.
• Emergency contact numbers.
• Maintenance information.
• Keys and fobs.

Take your time during this handover and don’t be afraid to ask questions.

What should I do after collecting the keys?

It’s tempting to focus entirely on unpacking, but there are a few important jobs worth completing during your first few days. These include:

• Taking meter readings.
• Testing smoke and carbon monoxide alarms.
• Checking that all supplied keys work correctly.
• Familiarising yourself with the heating and hot water controls.
• Registering your utilities if required.
• Updating your address with banks, employers and other organisations.
• Booking or carrying out your snagging inspection.

Don’t feel like you need to do everything on the first day. Take your time and enjoy the moment. You’ve worked hard to get here!

What happens to my mortgage?

Many buyers wonder what happens to their mortgage once completion takes place. The answer is simple. Your lender transfers the mortgage funds to your solicitor to complete the purchase. From this point onwards:

• Your mortgage officially begins.
• You’ll start making your monthly mortgage payments on the agreed date.
• Your lender will write to confirm your payment schedule – remember, you’re first payment date may be different to your agreed monthly payment amount and it may be taken on a date other than your agreed direct debit payment date.

Your mortgage adviser will also remain available if you have any questions after you’ve moved in!