The nervous wait to exchange....

Associate
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25 Dec 2008
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Norwich
we got a update from the solicitor on friday the entire chain is now waiting on the first buyer only trouble being is their money is being held by the Court of Protection (the buyers son was in an accident and received a payout) they need to release the funds to the 1st buyer so the exchange can take place on the remaining 4 properties in the chain. If we had known the sale was dependent on this initial release of funds we probably wouldn't of accepted the offer on our house but we are so far in now we kinda have no choice but to continue and wait for the court to release funds, have read it can take between 4-6 months for funds to be released given its been 4 months already hopefully it will happen soon.
 
Soldato
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2 Dec 2004
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Under The Desk, Wales
Put offer in on a flat which has been accepted. Vendor is getting legal document organised to confirm other flat owners (3) in semi agree to equal cost if maintenance needed on the building. No management company involved.
 
Soldato
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Northampton
sold my house for the third time in as many months. twice had buyers buyer pull out. We have sold again to the original buyer.

Have lost 2 houses we loved. Onto the next :)
 
Associate
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22 Nov 2017
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Finally exchanged today, completion week tomorrow. All with four weeks left on our mortgage offer.

Lots of sitting around waiting, some last minute funny business today but agreed to an indemnity which has finally seen us over the line.

Easily the most stressful time period I can remember.

I truly hope all those waiting get their deals over the line and to those that have waited and waited only to see their deals fall through you have my utmost sympathy.

All the best everyone.
 
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Soldato
Joined
2 Dec 2004
Posts
13,980
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Under The Desk, Wales
Finally exchanged today, completion week tomorrow. All with four weeks left on our mortgage offer.

Lots of sitting around waiting, some last minute funny business today but agreed to an indemnity which has finally seen us over the line.

Easily the most stressful time period I can remember.

I truly hope all those waiting get their deals over the line and to those that have waited and waited only to see their deals fall through you have my utmost synopsissy.

All the best everyone.


Congratulations. All the very best
 
Soldato
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Or solicitor has sent through a letter saying that we are waiting on the lender to confirm if they are happy with the ground rent "situation" where it doubles every X amount of years. Has anyone been in this situation before and what was the outcome?

This brings me onto another question, purchasing a share of the freehold, how would you guage the price of an offer? I understand it's typically after 2 years of ownership.

This is a very hot topic at the moment. Its a nasty clause put into leases and one that shouldnt be there. The government have even waded in to the argument in order to ensure these clauses are not put into leases in the future. Sure the initial rises may seem small but they soon grow and at a much greater level of RPI.

Many of the major high street lenders guidance state that a doubling in ground rent is undesirable and so i would imagine the surveyor who carried out the initial valuation survey on your palce is being asked if the clause has a material affect on the properties value. He/she will be guided by the lender on that front as they will likely have rules of their own about it.

Fingers crossed for you its ok but be prepared for the worst just in case. Your buyer may have their mortgage declined.

Bloody freeholders - always looking to squeeze as much out of you as possible.

with regards the share of freehold - at least 50% of the lease holders must buy their share at the same time. The calculation as to the cost of your share is dependent on the marriage value of the property. Its a technical subject but one that employs proffesionals to work out for you. As lease holders, you are always given first refusal to buy your share of freehold. Best talk to your solicitor about it.
 
Man of Honour
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This brings me onto another question, purchasing a share of the freehold, how would you guage the price of an offer? I understand it's typically after 2 years of ownership.
the 2 years is to do with legal right to extend the lease by 90 years.
See here
https://www.moneysavingexpert.com/mortgages/extend-your-lease

to buy the freehold you need 50% of all tenants to agree


http://www.propertymark.co.uk/advic...should-you-buy-the-freehold-to-your-flat.aspx
You can ask the landlord to sell you the freehold at any time. By law, if landlords wish to sell the freehold, they must offer all leaseholder first refusal to buy it.

Buying the freehold isn’t something you can do on your own, however – to qualify you have to get your neighbours involved too. By law, at least half of the leaseholders in the building must come together to purchase the freehold.

At the end of the process, the flat-owners would:

  • Together own the freehold of the building (often by forming a limited company – this company will be owned and controlled by the flat owners); and
  • Separately, each would still have a long lease – but instead of this lease being from the old freeholder it would now be from the new entity that owns the freehold and that you and your neighbours now control
Once you jointly own the freehold, you can collectively set ground rents, shop around for the best insurance and generally be in control of your own destiny. You are also able to extend your lease so it is a long lease with the only cost being legal fees.

Am I Eligible to Buy the Freehold?
Generally, the requirements for a group of leaseholders to buy the freehold are:

  • The building needs to contain at least two flats;
  • No more than 25% of the freehold building can be used for non-residential purposes (e.g. shops/offices);
  • At least two-thirds of the flats must be owned by leaseholders who own long leases (originally granted for at least 21 years); and
  • At least half of the total number of flats in the building must be owned by leaseholders who want to buy a share of the freehold – so you don’t need to have all owners on board but you do need to have at least half of the flat-owners involved. If there are only two flats in the building, then both leaseholders must want to buy the freehold.
How Much Does It Cost to Buy the Freehold?
Freehold prices vary in the same way property prices do but certainly the shorter your lease, the pricier your freehold.

In terms of what the costs involve, to buy your share of the freehold you will need to pay your flat’s share of:

  • The purchase price for the freehold
  • The cost for a surveyor to do an accurate freehold valuation so you avoid paying over the odds
  • Legal fees for the leaseholders
  • The freeholders legal and valuation fees
  • Stamp duty land tax (if the purchase price is over £125,000)
What Are the Benefits?
  • Free lease extensions – If you buy the freehold and you can usually extend the lease to 999 years at no extra cost (excluding legal fees)
  • You control service charges - You can choose value-for-money, quality providers
  • No ground rent - You normally don't need to pay ground rent
  • Fewer conditions - Leases can come with a number of conditions, for example, you may need the freeholder's permission to let the flat or have a dog
  • It can add value to your home – Buyers generally prefer freehold flats to leasehold

you don't even need the others to buy it, with their consent you can buy the freehold for the entire place and become the managing company. Which is what a mate did with inheritance money and some family also help fund.
 
Soldato
Joined
3 Oct 2009
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19,892
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Wales
Or solicitor has sent through a letter saying that we are waiting on the lender to confirm if they are happy with the ground rent "situation" where it doubles every X amount of years. Has anyone been in this situation before and what was the outcome?

This brings me onto another question, purchasing a share of the freehold, how would you guage the price of an offer? I understand it's typically after 2 years of ownership.
Pretty sure your lender will not be happy. It is now written into their guidelines that it is unacceptable for most big lenders.

Is it a Taylor Wimpey property? If so the seller should go through their assistance scheme to vary the lease before you purchase. Or buy the freehold.
 
Soldato
Joined
13 Aug 2004
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8,324
Location
England
Pretty sure your lender will not be happy. It is now written into their guidelines that it is unacceptable for most big lenders.

Is it a Taylor Wimpey property? If so the seller should go through their assistance scheme to vary the lease before you purchase. Or buy the freehold.

It is not a Taylor Wimpey property afaik. I've spoken with my other half and we're going to notify our solicitors that we no longer wish to proceed with the purchase due to this, I'd rather take on more of a mortgage and purchase a house which is freehold, even if that puts me towards the top of the limit of borrowing. Rather the money from maintenance and ground rent go towards a house than a managing agent.
 
Soldato
Joined
13 Aug 2004
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8,324
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England
Solicitors informed and some more viewings lined up, freehold houses this time with a stetch of the budget.

[edit] Also, when I spoke to the solicitors the last they had been told by the lenders is that they would likely not lend on this property, it really seems like a scam from the management company.
 
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Associate
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18 Oct 2002
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lancaster
Due to complete next thursday and likely exchange tommorow. Buyers solicitor has raised some enquires very late in the day. Most very minor apart from solicitor as if I'm prepared to have a gas maintenance check and electric test.

Replied yes at the buyers cost and for them to arrange. Bit annoying so late in the day.
 
Associate
Joined
22 Nov 2017
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325
Due to complete and move tomorrow. Spent all weekend clearing the loft and getting ready.

Packed the cat off to the cattery this morning and just this lunchtime sent the final £35k to the solicitors ready for tomorrow.

All coming to an end now, and starting to get a bit emotional. Seven years doesn't seem like long but our Son was born here and spent seven years growing up here so lots of treasured memories.

Now to move on and make many more in the new home.
 

Kol

Kol

Man of Honour
Joined
8 Jan 2003
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14,201
Location
London
When we bought our place we went with O'Neill Patient who were just great. I remember someone saying we should go local (London) as these guys were in Stockport. To be honest, it makes very little difference their location, in my experience unless they need to have some specific knowledge of the area.
 
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