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Residential Property Partner, Vursha Joye explains why property deals are taking longer and what London buyers and sellers can do about it.
Why are property transactions taking longer?
Residential conveyancing has always involved extensive legal, financial and practical checks, but transactions are now under greater pressure than ever. A modern property deal can involve buyers, sellers, estate agents, mortgage lenders, surveyors, search providers, landlords, managing agents, and conveyancers. If one party experiences a delay, the entire chain can slow down.
Transactions which buyers and sellers may once have expected to complete within six to twelve weeks can now take considerably longer, particularly where there are leasehold issues, mortgage requirements, or complex funding arrangements.
Why do Anti-Money Laundering checks cause delays?
Anti-Money Laundering( AML) checks are a mandatory part of every property transaction. Conveyancers are required to verify identity, address, source of funds and, where necessary, source of wealth. These checks apply to clients generally and are an important part of the regulatory obligations which conveyancers must comply with.
Delays can occur where funds originate from multiple accounts, family gifts, inheritances, investments, business proceeds or overseas transfers. If money has moved through several accounts, conveyancers must be able to follow a clear paper trail.
The sooner clients provide supporting documents and explain the movement of funds, the sooner these checks can be completed.
Are business owners and property investors facing additional scrutiny?
Yes. Business owners, company directors, landlords, and investors often have more complex funding arrangements, requiring additional evidence.
Conveyancers may need to establish whether funds come from dividends, retained profits, director loans or bridging finance. Gathering accountant letters, bank statements, and evidence of transfers early in the process can help avoid unnecessary delays.
Why do leasehold properties often take longer to sell?
Leasehold transactions typically involve more parties and more documentation. The buyer’ s conveyancers must review the lease, service charge accounts, ground rent provisions, insurance details, planned major works and information provided by the freeholder or managing agent.
A common cause of delay is the management information pack. If this is incomplete or slow to arrive, the transaction can stall. Requesting management information early and checking for missing documents can significantly improve timescales.
What timescale should buyers and sellers realistically expect today?
Every transaction is different, but buyers and sellers should avoid assuming that a quick completion is guaranteed.
A straightforward freehold transaction may still progress efficiently, but leasehold properties, mortgage-funded purchases, chains, and matters involving complex sources of funds often take considerably longer. It is sensible to build contingency into your plans and avoid booking removals or making other commitments until key milestones, such as searches, enquiries and mortgage approval, are well advanced.
How can conveyancers help keep transactions on track?
Conveyancers cannot control every third party involved in a transaction, but they can minimise avoidable delays by being proactive.
Early title review, prompt ordering of searches and management packs, clear AML guidance, and regular communication can all make a significant difference. Proactive case management helps identify potential issues before they become obstacles.
What can sellers do before listing a property to avoid delays?
Sellers should instruct a conveyancer before, or as soon as, their property is marketed.
They should complete the Property Information Forms carefully and locate key documents such as planning permissions, building regulation approvals, warranties, guarantees, and gas and electrical certificates. Leasehold sellers should request their management pack immediately.
It is also important to tell your conveyancer about any existing charges, restrictions or plans for an onward purchase, allowing potential issues to be addressed early.
What are your top three tips for a smoother transaction?
1. Instruct your conveyancers early. Complete onboarding and AML requirements as soon as possible.
2. Gather documents in advance. Prepare evidence of funds, certificates, warranties and property-related paperwork before they are requested.
3. Communicate promptly and realistically. Respond quickly to enquiries and be prepared for longer timescales than in previous years.
Longer transaction timelines have become a feature of today’ s property market. However, with good preparation, transparency, and an experienced conveyancing team, London buyers and sellers can still achieve a smooth and successful move.
For more information, visit www. allaw. co. uk email contact @ allaw. co. uk or contact the team on 020 8771 5254