Buying a Home in England and Wales: Exchange to Completion

Geographic note: this article applies to England and Wales. Scotland uses an entirely different missives system, with a fundamentally different legal structure, and is outside the scope of this article. In Wales, Stamp Duty is replaced by the Land Transaction Tax (LTT), administered by the Welsh Revenue Authority, with a different rate structure from England.

Many readers considering buying property in the UK share a basic misunderstanding about the England and Wales buying process: they assume that once an offer is accepted, the sale is done, and they can simply wait to move in. In fact, until Exchange of Contracts is complete, the whole transaction has no legal force whatsoever — the seller can accept a higher offer (known as gazumping), and the buyer can also withdraw at no legal cost. Exchange is the real watershed of the whole process.

This article follows the process in order from making an offer, through instructing a solicitor, applying for a mortgage, having a survey done, completing Exchange, and finally reaching Completion, explaining the legal significance and practical points of each stage. For readers considering an off-plan or new-build purchase, this article also has a separate section explaining the treatment, which differs significantly from a resale (second-hand) property.

This article is written for the following types of readers:

• Overseas buyers, new immigrants and expats in the UK: buying a residential property in England or Wales for the first time and needing to understand the whole legal process
• Chinese-speaking readers researching UK property purchase: not necessarily planning to buy immediately, but wanting to understand the framework first
• Readers considering an off-plan or new-build purchase: needing to understand the risk points and protections that clearly differ from a resale property

This article does not cover: buying in Scotland, commercial property, or a comparison of mortgage products (the terms differ across banks and are beyond the scope of this article).

The Core Framework: Exchange Is the Legal Watershed

From Offer to Exchange: Lawful, but with No Legal Force Whatsoever

In England and Wales, the whole buying process begins with an offer, goes through instructing a solicitor, applying for a mortgage, and carrying out a property survey, and it is only when both sides’ solicitors sign and exchange contracts simultaneously (Exchange of Contracts) that anything becomes binding. Before that point, either party can withdraw from the transaction at no cost.

This includes:

• The offer being accepted verbally or in writing
• The Memorandum of Sale having been issued
• Both parties having instructed solicitors
• The bank having issued a Mortgage in Principle
• The property survey having been completed

None of the above steps creates a legally binding commitment.

Gazumping (the seller backing out after acceptance) is legal in England and Wales: after accepting an offer and before Exchange, the seller can still accept a higher offer from another buyer, forcing the original buyer out with no legal remedy. This is one of the most criticized features of the system, but as of July 2026, discussions on reforming the relevant law have not concluded, and gazumping remains legal.

Exchange of Contracts: The Formal Start of Legal Force

Exchange of Contracts is the single most important legal milestone in the England and Wales buying process. Once Exchange is complete:

• The contract is legally binding, and either party in breach must bear the legal consequences
• The buyer usually pays a deposit at Exchange (typically 10% of the purchase price, explained below)
• If the buyer breaches: the deposit is usually forfeited to the seller, who can also pursue additional losses
• If the seller breaches: the buyer is entitled to recover the deposit and pursue losses

The deposit amount can be agreed between the parties; 10% is the customary standard set by the Law Society’s Code for Signing and Exchanging Property Contracts 2024; in practice, arrangements below 10% also exist, but with correspondingly different levels of protection.

Completion: The Transaction Actually Finishes, and You Get the Keys

Completion is the moment the sale is formally finished: funds are settled, keys are handed over, and ownership of the property transfers.

The gap between Exchange and Completion is agreed by both parties, generally 1 to 4 weeks for a resale property, though same-day completion is also possible. Off-plan purchases are a completely different case — the gap between Exchange and Completion can run to months or years (depending on construction progress), covered in a dedicated section below.

After Completion, the buyer’s solicitor is responsible for arranging registration with HM Land Registry, and must file and pay Stamp Duty Land Tax (SDLT) within 14 days.

Mortgage Application and Property Survey: Two Parallel Tracks

Mortgage Application Steps

A mortgage application usually starts as soon as an offer is accepted, running in parallel with the conveyancing process:

1. Mortgage in Principle (MIP / Agreement in Principle): a conditional approval given by the bank based on preliminary information (income, credit score, etc.). An MIP is not the same as a formal mortgage approval — the bank retains the right to reassess before formal approval and before Completion, and terms may change. Showing an MIP when making an offer lets the seller confirm the buyer has basic financing capability.
2. Formal mortgage application: after the offer is accepted and a solicitor instructed, complete documents are submitted to the bank. The bank will arrange a Lender’s Valuation to assess whether the property is worth lending against — not to assess the condition of the property.
3. Mortgage approval: this usually takes several weeks. After approval, the bank issues a formal Mortgage Offer, generally valid for 3 to 6 months.

An important distinction: a Lender’s Valuation is not the same as an independent property survey. A Lender’s Valuation only protects the bank’s interest, and does not tell the buyer about the property’s structural condition or potential repair needs. Buyers should not treat a lender’s valuation as a substitute for an independent survey.

Property Survey: RICS’s Three Levels

The Royal Institution of Chartered Surveyors (RICS) offers independent surveys at three levels:

• Level 1 (Condition Report): the most basic, suitable for a newly built or conventional property in good condition, giving a condition rating for the main elements of the property
• Level 2 (HomeBuyer Report): the most common, suitable for a conventional property in reasonable condition, including an inspection of the roof space and drainage, plus a valuation opinion
• Level 3 (Building Survey): the most comprehensive, suitable for an older property, a complex structure, or where major renovation is planned, detailing all findings and repair recommendations

Which level to choose depends on the property’s age, condition and the buyer’s needs. An older resale property is generally recommended to have a Level 2 or Level 3 survey.

The Conveyancing Process

Conveyancing is the legal transfer process for a residential sale, handled by a solicitor or a Licensed Conveyancer. The main work includes:

• Reviewing the seller’s Legal Pack and draft contract
• Carrying out various searches: Local Authority Search, Water and Drainage Search, Environmental Search and others
• Checking the property’s title history and any existing mortgage registrations
• For a leasehold property, checking the remaining lease term, service charges and ground rent arrangements
• Coordinating agreement on contract terms between both parties and arranging Exchange

Conveyancing fees are generally in the region of £1,500 to £3,000 or more, depending on the complexity of the property, whether it is leasehold, and the solicitor’s fee structure (this is an industry reference range, not a fixed fee). The whole process from an accepted offer to Completion generally takes 10 to 16 weeks, as short as 8 weeks for a simple freehold, and up to 6 months or longer for a complex leasehold.

Stamp Duty Land Tax (SDLT): The Tax Structure You Must Understand

SDLT is triggered based on the calculation on the Completion date, and must be filed and paid to HMRC within 14 days of Completion. The Exchange date is not the basis for the tax calculation — this matters particularly for off-plan buyers, since Exchange can occur years before Completion, and it is the rate applicable at Completion that applies.

This section applies to England and Northern Ireland. Property in Wales is subject to the Land Transaction Tax (LTT), administered by the Welsh Revenue Authority, with a different rate structure — check the WRA’s official website.

Standard Residential Rates (from 1 April 2025, England and Northern Ireland)

*Note: the temporary SDLT holiday expired on 31 March 2025; the standard rates above resumed from 1 April. Any lower starting threshold applicable between September 2022 and March 2025 no longer applies.*

Surcharges

Non-UK resident surcharge (+2%): from 1 April 2021, a non-UK resident buying a residential property in England or Northern Ireland must pay an extra 2% on top of the standard rate across all bands. The residency test: anyone who has spent fewer than 183 days in the UK in the 12 months before the Completion date is treated as a “non-UK resident.” This 183-day residence test is used only for SDLT purposes and is calculated differently from the income-tax residency test — the two must not be confused.

If you make up the 183 days of residence within the 12 months after the Completion date, you can apply to HMRC for a refund of the 2% surcharge already paid (the refund application must be made within 2 years of Completion).

Additional-property surcharge (+5%): from 31 October 2024, buying a second home or a buy-to-let property carries an extra 5% on top of the standard rate across all bands.

The two surcharges can apply at the same time — for example, a non-UK resident buying a second property could face a rate of up to 19% at the highest band (above £1.5m).

First-Time Buyer Relief

Someone who qualifies as a first-time buyer (neither they nor any joint buyer has ever owned a residential property anywhere in the world) can benefit from relief:

• Below £300,000: 0% (fully exempt)
• £300,001 to £500,000: 5%
• Above £500,000: no relief available — the full price is taxed at the standard rate

A non-UK resident can also apply for First-Time Buyer Relief, but must add the non-UK resident +2% surcharge on top. First-time buyer eligibility is based on never having owned property anywhere in the world, and has nothing to do with residency status.

*The rates and relief conditions above are based on official information as of July 2026. SDLT policy may change with government budgets; it is recommended to verify the latest rates on the HMRC official page (gov.uk/stamp-duty-land-tax) before Completion, and use the HMRC SDLT calculator to work out the actual amount payable.*

Freehold and Leasehold: The Nature of the Property You Must Confirm Before Buying

Residential property in England and Wales is mainly sold as either Freehold or Leasehold.

Freehold: permanent ownership of the land and building, with no time limit — this is the form of ownership for most houses.

Leasehold: the holder only has the right to use the property for the term set out in the lease; once the term ends, ownership reverts to the landowner (the Freeholder). Most flats/apartments are sold as leasehold. Before buying a leasehold property, you must pay attention to:

• Remaining lease term: generally, mainstream banks may refuse or tighten mortgage terms once the remaining term drops below roughly 70 to 80 years (this is an industry reference point, not a legal rule — policies vary by bank, and the actual outcome depends on the individual application). If the remaining term is short, you can apply to the Freeholder for a Lease Extension, though this carries an additional cost.
• Service Charge: paid annually to the management company, covering the building’s shared repairs and day-to-day management; the amount is not fixed.
• Ground Rent: under the Leasehold Reform (Ground Rent) Act 2022, the statutory ground rent for any new residential lease signed after 27 June 2022 is zero (i.e. charging ground rent is prohibited). Arrangements under older leases vary and must be checked carefully before buying.

Before buying a leasehold property, a solicitor should review the lease in full, covering all financial obligations and restrictive terms.

Off-Plan and New-Build: A Purchase Model Very Different from a Resale

*This section applies only to an off-plan or new-build property purchased during construction, where Completion happens only once the building is finished.*

The Timeline Is Fundamentally Different

New-build developments usually require the buyer to complete Exchange early in construction (or even before work starts), at which point the property may not yet be built. The gap between Exchange and Completion can run to months or years (depending on construction progress), completely different from the 1 to 4 weeks typical of a resale property.

A developer’s contract usually reserves the right to adjust the completion date, and the terms are drafted by the developer’s solicitor rather than in Law Society standard form, favoring the developer’s interests. The buyer’s solicitor reviewing the contract is not a step that can be skipped.

How the Deposit Is Held: Stakeholder vs Agent

How the 10% deposit paid at Exchange for an off-plan purchase is held matters a great deal:

• Stakeholder model: the deposit is jointly held by both parties’ solicitors, so even if the developer becomes insolvent, the deposit is unaffected — a higher level of protection
• Agent model: the deposit is released directly to the developer; if the developer becomes insolvent, recovering the deposit may be difficult

Many developer contracts specify the Agent model — the buyer’s solicitor should check the deposit-holding terms in the contract before Exchange.

NHBC Buildmark Protection

If the developer is registered with the National House Building Council (NHBC), the property purchased usually comes with Buildmark protection:

• Deposit protection: before Completion, if the developer becomes insolvent and the project is cancelled, Buildmark can cover the deposit loss, capped at 10% of the purchase price or £100,000 (whichever is lower), and applies only to the first buyer
• Builder warranty period: for the first 2 years after Completion, the developer is responsible for construction defects (with NHBC providing mediation/guarantee support)
• Structural insurance: for years 3 to 10, NHBC provides structural defects insurance

The above protections rely on two prerequisites: (1) the developer is registered with NHBC; and (2) the property purchased has been enrolled in the Buildmark scheme. Not every new-build automatically has this protection. It is recommended to confirm before signing whether the contract includes an NHBC Buildmark protection statement, and this can be checked directly on the NHBC official website (the specific coverage period and details follow the NHBC website and the legal pack).

Long-Stop Date: The Right to Withdraw Depends on the Contract Terms

If the developer is significantly delayed in finishing, does the buyer have the right to cancel the contract and get the deposit back? This depends on whether the contract includes a “Long-stop Date” clause.

A Long-stop Date is a contractual arrangement, not a statutory right, and not every off-plan contract has one. Where this clause exists, the buyer usually needs to follow the notice procedure specified in the contract to exercise the right to withdraw — it does not take effect automatically. Where no such clause exists, a developer’s delay is generally protected by exclusion clauses in the contract, leaving the buyer in a relatively weak legal position. A solicitor must confirm before Exchange whether the contract includes this clause and the specific withdrawal procedure.

New-Build Buyer Protection Codes

Besides NHBC, some developers also join industry self-regulatory codes. The New Homes Quality Code (NHQC), managed by the New Homes Quality Board (NHQB), has a March 2026 update applying to homes reserved from 2 March 2026, and developer participation is voluntary. The New Homes Ombudsman Service (NHOS) provides a free, independent complaints mechanism, handling complaints about the buying process and about defects in the first 2 years after completion.

The above codes are all voluntary industry codes, not statutory requirements. It is worth confirming whether the developer has joined before buying.

Snagging

At handover, you should carry out Snagging — systematically recording all construction defects and requiring the developer to fix them within a reasonable time. The NHOS complaints mechanism can handle cases where the developer fails to properly fix defects within the first 2 years after completion.

Common Misunderstandings

Misunderstanding One: An Accepted Offer Means the Sale Is Done

An offer, its acceptance, and the Memorandum of Sale all have no legal force in England and Wales. Exchange of Contracts is the point at which the sale legally comes into existence. Before Exchange, either party can withdraw, including the seller accepting a higher offer (gazumping).

Misunderstanding Two: SDLT Is Paid at Exchange

SDLT is calculated based on the Completion date, and must be filed and paid within 14 days of Completion. The Exchange date does not trigger SDLT. This matters particularly for off-plan buyers — no SDLT is due at Exchange, and it is calculated at Completion using the rate applicable on that day.

Misunderstanding Three: A Non-UK Resident Cannot Apply for First-Time Buyer Relief

A non-UK resident, as long as they meet the “never owned property anywhere in the world” condition, can equally apply for First-Time Buyer Relief (0% for the price band below £300,000, with an upper price limit of £500,000). But they must add the non-UK resident +2% surcharge, and both can apply at the same time.

Misunderstanding Four: A New-Build Always Comes with a 10-Year Building Warranty

The 10-year NHBC Buildmark warranty depends on the developer being registered with NHBC and the property being enrolled in the scheme. Not every new-build automatically has this protection. Confirm before buying whether the contract has a clear NHBC Buildmark protection statement.

Misunderstanding Five: Once a Developer Is Delayed, You Can Cancel the Contract and Get Your Deposit Back Any Time

The right to withdraw depends on whether the contract has a Long-stop Date clause and the specific notice procedure. This is a contractual arrangement, not a statutory right. Without this clause, or without following the contract’s procedure, the buyer generally cannot unilaterally withdraw, and the deposit may not be recoverable either.

Frequently Asked Questions About Buying in England and Wales

Q: Do I need to be physically in the UK to buy a house?
Many stages of the buying process (such as signing documents and reviewing the legal pack) can be done remotely, but the property survey and taking handover usually require the buyer or an authorized agent to attend in person. In England and Wales, if you instruct a solicitor, the whole conveyancing process does not necessarily require the buyer to attend in person. It is best to confirm the specific arrangements for remote handling with your solicitor, especially the identity-verification (AML/KYC) document requirements.

Q: Can a foreign national buy property in England?
There is no nationality or visa-category legal restriction on foreign nationals buying property in England and Wales — the purchase process is basically the same as for a UK citizen. But a non-UK resident (under the SDLT 183-day residence test) must pay the +2% non-resident surcharge. For mortgage applications, approval conditions for non-residents are generally stricter, and some banks have additional requirements for applicants holding certain visa categories — it is recommended to consult a professional mortgage broker.

Q: Is the SDLT “non-UK resident” determination related to my tax residency status?
The two are entirely independent and must not be confused. The SDLT non-UK resident determination only looks at whether you spent 183 days or more in the UK in the 12 months before the Completion date, which is calculated differently and has a different threshold from income-tax residency (the Statutory Residence Test). Even if you are already a UK tax resident for income tax purposes, if you spent fewer than 183 days in the UK in the 12 months before Completion, SDLT still treats you as a “non-UK resident.”

Q: Can I still back out after Exchange?
After Exchange, the contract is legally binding. If the buyer breaches and withdraws, the deposit is usually forfeited to the seller, who can also pursue additional losses. If the seller breaches, the buyer is entitled to recover the deposit and pursue losses. The cost of withdrawing after Exchange is high — think carefully before deciding.

Q: Roughly how much are solicitor’s fees and other buying costs?
The main costs include: conveyancing solicitor’s fees (generally around £1,500 to £3,000 or more, depending on the complexity of the property), RICS survey fees (varying by level and property), HM Land Registry registration fees (calculated on the sale price, under the Scale 1 fee table, checkable via the Land Registry fee calculator), and SDLT (see the rates above). The figures above are a guide, not a guaranteed amount — it is recommended to get a written quote from each qualified professional or relevant body.

Q: How short does a leasehold term need to be before it affects a mortgage?
Generally, mainstream banks may tighten mortgage terms or even decline to lend on a leasehold property with a remaining term below roughly 70 to 80 years, but this is an industry convention rather than a legal rule, and actual policy varies by bank. If the remaining term on a property is short, confirm with a mortgage adviser before applying, and consider whether a Lease Extension is needed first — applying for a lease extension involves additional cost and legal process, usually taking several months to a few years.

Q: How does a non-resident get back the +2% SDLT surcharge already paid?
Within 2 years of Completion (counting from the Completion date), if you can prove that you have lived in the UK for 183 days or more within the 12 months after the Completion date, you can apply to HMRC for a refund. The refund must be actively applied for — it is not refunded automatically. It is recommended to have a solicitor help prepare the application materials.

Q: Does the SDLT discussed in this article also apply to property in Wales?
No. Wales has not charged SDLT since 1 April 2018 — instead, the Welsh Revenue Authority charges the Land Transaction Tax (LTT). The LTT’s rate structure and relief conditions differ from SDLT — for property in Wales, check the Welsh Revenue Authority’s official website directly (gov.wales/land-transaction-tax).

If you have a question about your own case, ask Zagdim and tell us your situation — we will help you clarify the details of the system.

Disclaimer

This article’s information is current as of July 2026. SDLT rates and relief conditions may change with government budgets, and property law and mortgage policy may also be revised. This article is for informational purposes and does not constitute legal, tax or financial advice. Before buying, consult a qualified solicitor, a licensed mortgage adviser and a tax adviser, and rely on the latest information from HMRC, HM Land Registry, RICS and NHBC’s official websites.

Have a question about this guide? Leave a comment below, or ask Zagdim directly.

Sources

• HMRC gov.uk/stamp-duty-land-tax
• HMRC Non-UK Resident SDLT Surcharge
• HM Land Registry Registration Services Fees
• The Law Society Code for Signing and Exchanging Property Contracts 2024
• RICS House Surveys Consumer Guide
• NHBC Buildmark Warranty