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On the face of it, collecting the keys to your new home may seem like the end of your new home journey. But there are still things for both you and your conveyancing solicitor to do.
What do I need to do after completion?
A priority on arrival at your new home is to take meter readings for gas, electric, and water. Taking photographs of the readings on your phone provides evidence in the unlikely event of a disagreement.
If you have not done so before completion day, you should update people, companies, and organisations with your new address. A Royal Mail redirect is also strongly recommended.
One important step that surprisingly few people are aware of is registering your property with Land Registry Property Alert. These days, identity theft isn’t limited to bank accounts and credit cards. Fraudsters are targeting bricks and mortar.
Check out my full Completion Day Checklist.
What does my solicitor have to do after completion?
There’s still a surprising amount of work for your solicitor after completion.
File the SDLT return and pay any tax
Before completion, you will have paid any Stamp Duty Land Tax (commonly referred to as SDLT or Stamp Duty) to your solicitor. Within 14 days of completion, your solicitor must file an SDLT return and pay any tax due to HMRC. Check out the Government’s Stamp Duty Calculator.
Obtain notice from the freeholder
If your new property is leasehold, in most cases, a covenant in the lease will require you to obtain notice of assignment from the landlord (freeholder). This is when your solicitor formally notifies the freeholder that you are the new lessee. As so often in leasehold matters, there’s usually a fee payable to the landlord, details of which will be contained in the lease. Obtaining notice of assignment will be a mortgage condition.
Register the property
After filing your SDLT return and paying the tax, your solicitor can register you as the new owner at the Land Registry using form AP1. The same form is also used to register any mortgage against the property – remember that your solicitor also acts for your mortgage lender. If the mortgage is not registered, registration by a subsequent lender means the first mortgagee loses priority and could even become an unsecured lender. So, as you can imagine, they are always very keen to ensure prompt registration.
Registration is also vital for you. Failing to register means you cannot sell or otherwise deal with the property. However, one practical problem is that the Land Registry often experiences significant delays, taking many months to complete the registration process.
Register any Declaration of Trust
If you are buying as tenants in common, it’s highly recommended that you have a Declaration of Trust drawn up, reflecting how each of you holds your share of the property. The document sets out what should happen to your funds on the property’s sale, and it must be registered with the Land Registry as a restriction on the title using Form JO. Doing so means the property cannot be sold without complying with the document’s terms. Failing to register increases the chances of a lengthy and costly dispute over the divisions of the proceeds of sale if your relationship breaks down.