Are you looking for the house of your dreams? You are well off and can afford the monthly payments? What’s drawing you back? Is it being a first-time buyer with no experience at all? Buying a house, especially for the first time will be intimidating. This decision will could cost you are saved you thousands of pounds.
It is a common misconception that mortgage applicants assume the estate agent, or the seller doesn’t have to play a crucial role in arranging the purchase completion. Home buying purchase is delayed mainly due to processing time taken by the seller’s solicitor. The buyer’s solicitor would send the searches and other inquiries to the seller’s solicitor. They usually take significant amount of time to process the requests. Therefore, the buyers might not be able to complete the mortgage in time.
It might cause them with losses related to stamp duty payable amounts. For example, we had the recent stamp duty holiday deadline on 30th June 2021. There were number of home purchase cases that didn’t complete in time due to the delays by seller’s end. It is important to understand the role of estate agent in the home buying process.
Is there anything a person would want to know about the house he is going to buy?
The biggest fear is there is some negative factor which has caused the sale. There are many factors a person should consider; whether the local railway station is close by? How is the drainage system? How about the traffic conditions and neighborhood? Whether the estate agent can explain the energy performance certificate? How old is the property? It is always good to discuss with the estate agent, next door neighbors and local shop keepers s on the crime rates, quality of schools in the prospective neighborhood.
What is included in the sale?
There are times the estate agents provide incentives. The incentive may be a contribution towards the deposit/ stamp duty, fixtures & fittings, flooring, white goods etc. The buyer will have to always make sure he sees what he is getting as an incentive. A good solicitor will ensure the purchase includes everything promised at the viewing. If a particular person is getting a Help to Buy loan there are restrictions the lenders have on these incentives. These restrictions will differ from a lender to a lender. It is always good to talk to an expert in the mortgage industry as they can assist if there are any restrictions.
Dealing with the timelines
Mostly off-plan properties/new builds have deadlines imposed by the developers of the site. This is mainly because of the high demand for new builds. The deadline will usually be in between 21-28 days. This will be counted from the day buyer’s solicitor receives the contract pack from the seller’s solicitor. Buyer’s solicitor should be able take necessary steps to meet the agreed deadline. Otherwise, the buyer will lose the property and the reservation fee.
Generally, the estate agents are inflating the property value. A buyer may agree on the price and will proceed with a mortgage application. The surveyor appointed by the lender will down value the property. The property value will depend on number of external reasons; Selling prices of houses in the neighborhood, poor condition of the house, how long the property has been in the market, demand for the properties in the particular area etc. If there is a down valuation the buyer can always negotiate with the estate agent to reduce the price.
Buyer will be legally bound to the transaction when at the exchange of contracts stage. The buyer is required to pay at least 10% of the purchase price to the seller’s solicitor. The client will be legally bound so far before the completion of the transaction. A number of things can happen in this period of time. Therefore, the buyer will have to make sure his solicitor understands the risk of the transaction and necessary steps have been taken to protect the buyer and specially the deposit that is with the developer/estate agent.
Overall, a mortgage adviser would link up the home buying process while helping the applicants. The mortgage adviser would speak to the estate agents, lender, solicitor, surveyors to make sure that the mortgage application is processing smoothly.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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