The short version
- On a new build, contracts usually exchange without a fixed completion date. Completion falls due a set number of working days after you serve notice that the home is finished, often around 10.
- Before you serve, have the paperwork the buyer's lender will need, and check the buyer is ready to complete in that time.
- Count the days properly, tell everyone involved on the same day, and keep an eye on the long stop date.
What "notice" means on a new build
Two different notices get called "notice to complete", and it helps to keep them apart.
This is the one new build runs on. Because nobody knows exactly when the build will finish, contracts exchange "on notice". Once the home is complete, the developer's solicitor tells the buyer's solicitor, and completion is due within the period the contract sets, often around 10 working days.
If completion doesn't happen on the day it's due, the party that's ready can serve a formal notice to complete, which usually gives a further 10 working days. If the buyer still doesn't complete, the contract may let the developer end the contract and keep the deposit. This is a last resort, and it's a matter for your solicitor.
This guide is mostly about the first: serving notice well, so you never need the second.
Before you serve: the paperwork
The buyer's lender won't release the mortgage money until it has what it needs, so make sure it's in place before the clock starts. Typically that means:
- The building control completion certificate, or the final certificate from your building control approver
- Your new home warranty provider's cover for the plot
- The lender's final inspection booked, where the valuation was done before the home was finished
- Anything else your contract says must be in place before notice can be served
Requirements vary by lender and by warranty provider, so check with the buyer's solicitor early rather than in the notice period.
Before you serve: is the buyer ready?
Ten working days is not long. If the buyer isn't ready when notice lands, it often isn't enough. Check:
- The mortgage offer is still valid on the completion date, with some margin
- The buyer's solicitor can request the mortgage money in time. Lenders ask for several working days' notice, often 3 to 6, and more where a final inspection is needed
- The buyer's balance of funds is in place
- There are no open enquiries left on either side
Before we built PlotBot, we knew notices were about to be served on our plots because we kept close track of the build ourselves. So before notice landed, we made sure each buyer's mortgage offer was in place, and worked with the buyer's solicitor to line up the completion money with the lender, so it arrived in good time to complete. It worked, but only because we knew the notices were coming.
PlotBot now does that groundwork for you: it checks each buyer is ready before notice is served, and tells everyone the moment it is.
Serving notice the right way
- Serve it as the contract says. The contract sets how notice must be given and to whom. A notice served the wrong way can be challenged.
- Count working days properly. Leave out weekends and bank holidays. A notice served the week before Christmas or Easter lands very differently from one served in a normal week.
- Tell everyone the same day. The agent, the buyer's solicitor and anyone else involved should know the completion date from the moment notice is served, so nobody hears it second-hand.
- Record the due date where everyone can see it, and watch it until completion.
Keep an eye on the long stop date
Most new build contracts have a long stop date: the latest date by which the home must be finished. It's often some months after the date you expect to complete. If the home isn't finished by then, the buyer may be able to withdraw and have their deposit returned, depending on the contract.
- Track every plot's long stop date against your build programme, not just your expected handover date.
- If a plot is drifting towards it, deal with it early, through the agent and the solicitors, rather than at the last minute.
If the buyer can't complete on time
A short delay is usually best solved by talking: through the agent, the buyer's solicitor and their broker, to find out what's missing and how long it will take. The contract may also allow interest on late completion. The formal route, a further notice to complete and possibly ending the contract, is a last resort. Take legal advice before you use it.
A checklist before you serve notice
- Building control completion certificate in hand
- Warranty cover in place for the plot
- Lender's final inspection booked, if needed
- Buyer's mortgage offer valid beyond the completion date
- Buyer's solicitor ready to request the money in time
- Buyer's balance of funds confirmed
- No open enquiries
- Completion date counted in working days, bank holidays taken out
- Agent and solicitors told on the day notice is served
- Long stop date checked
Know every buyer is ready before you serve.
PlotBot checks buyer readiness before notice is served: contracts signed, and a mortgage offer or cash in place. It tracks each buyer's mortgage offer against your handover dates, works out the completion due date in working days with bank holidays taken out the moment notice is served, and tells everyone involved straight away. It never contacts your buyers: sales are progressed through the agent, the buyer's solicitor and their broker.
Questions developers ask
How long does a buyer have to complete after notice?
It's set by the contract, and it's often around 10 working days. Count working days only, leaving out weekends and bank holidays.
Can I serve notice before the home is finished?
Usually not. The contract normally says what must be in place before notice can be served, such as the building control certificate and warranty cover. Check your contract.
What if the buyer's mortgage offer runs out before completion?
The buyer will need an extension or a new offer before the lender will release the money. Catch it before you serve notice: compare each buyer's offer expiry with your expected handover date, and tell the agent and the broker early.
What is a long stop date?
The latest date in the contract by which the home must be finished. If it passes and the home isn't ready, the buyer may be able to withdraw and get their deposit back, depending on the contract.
Sources
- Completion on notice and the notice period: Nockolds, Completion on notice
- Long stop dates and missed completion: HomeOwners Alliance, New build completion delays; new-builds.co.uk, When your new build home is not ready on time
- Lenders' notice periods for releasing mortgage money: UK Finance Lenders' Handbook (England and Wales)
- Mortgage offer validity: Which?, What can you do if your mortgage offer expires
This guide is general information, not legal or financial advice.
Also read: Why new build sales fall through, and how developers stop it