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The nervous wait to exchange....

Discussion in 'Home and Garden' started by noj, 3 Apr 2014.

  1. Basher

    Sgarrista

    Joined: 18 Oct 2002

    Posts: 9,152

    I imagine it's for the LTV assessment. So if the value is lower than expected, they won't lend at a certain rate (or may not even lend at all if that pushes you beyond 85% or 90% etc)
     
  2. montymint

    Don

    Joined: 29 Jul 2006

    Posts: 5,768

    Location: Newcastle, UK

    urgh, I'm still waiting on my buyers underwriting to be completed and it's been over a week.

    The joys of the self employed I guess, a lot more scrutiny.
     
  3. Lonewolf

    Mobster

    Joined: 23 Feb 2004

    Posts: 3,559

    Location: Manchester

    Not sure of the reason TBH, came as a bit of a shock. Sold my property back in May so, the pressure is on.
     
  4. Vita

    Capodecina

    Joined: 26 Mar 2006

    Posts: 11,277

    Location: United Kingdom

    Small update; hopeful that we will complete in the 1st week of September. Not bad if we can do it in the 2 month mark.
     
  5. R-evans

    Wise Guy

    Joined: 13 Nov 2012

    Posts: 2,032

    Quick question.

    We are in the process of buying a house and have had a full building survey done. The survey pointed out a few areas of concern (possible asbestos, leaking gutters, failed window seals) and also said we should obtain boiler service / installation records prior to exchange, or get the current owners to have one carried out.

    Current update from them is that they have received the contract and are investigating the title documents.

    At what point should I mention this to the conveyancing team? We were told to wait until the lenders have done their search (which has just been booked) and provide their valuation before we mention any concerns and try to negotiate, but is it worth giving this info to the conveyancing team now given that they have received the contract?
     
    Last edited: 17 Aug 2021
  6. Scam

    Capodecina

    Joined: 20 Oct 2002

    Posts: 14,764

    Location: London

    Only a recent FTB here so no expert, but I'm sure our solicitor asked for the results of the survey asap. You'll find there are items in there specifically flagged for them.

    I certainly wouldn't withhold anything - your solicitor needs to know whether or not to put wording in that tells the owners e.g. you won't exchange without a boiler service document/or them completing a service. We had exactly that actually, our solicitor had to chase for a boiler service document (I thought that in itself is quite standard :confused: ).
     
  7. Rabtech

    Wise Guy

    Joined: 27 Dec 2003

    Posts: 1,154

    Location: Preston, Lancs

    Our tale of woe up to now, we are in a 2 bed terraced partitioned into 3 bedrooms. We have a cash buyer from a housing association for our house, the house we want to buy is a 3 bedroom semi about 1/2 a mile away. The vendor has been granted a certificate of probate - split is 5 ways between siblings. Our conveyancing solicitor is local, vendors is a large national one who work on behalf of multiple online estate agents and other agents.

    21st May - AIP
    4th June - Valuation
    9th June - Listed with Estate Agent
    25th June - Offer received and (cash) buyers funds validated, offer accepted
    27th June - Made offer on a property we liked
    28th June - Vendor declined offer
    29th June - Appointed local solicitor for sale of our property
    5th July - All forms filled in, ID checks etc done and emailed to our solicitor
    6th July - Vendor of house first offer refused on called back, current person offering messing about, they dropped their offer. We made an offer instead higher, informed no chain below us - cash buyer on our house.
    7th July - Offer officially accepted
    7th July - Assessed Mortgages with Broker
    8th July - Broker applied for chosen Mortgage
    8th July - Appointed local solicitor for purchase of next property (same one we are selling our house with, to speed things up)
    13th July - Property to be purchased removed from market
    19th July - Surveyor visit for next property (no major issues)
    22nd July - Mortgage Application Approved
    23rd July - Chased vendor, vendor delays with estate agents online logins
    28th July - Our solicitor messaged, not had contract pack from vendors solicitor
    28th July - Chased vendor, filling out forms and ID checks
    6th August - Vendor sent probate certificate to their solicitor
    10th August - Our solicitor messaged, she has had no contact at all from vendors solicitor. Vendors estate agent replied probate certificate received.
    16th August - Emailed vendors estate agent, no response.
    17th August - Emailed our solicitor, she has had no contact at all from vendors solicitor.
    17th August - Called vendors estate agent - advised system showing only received example probate certificate, not full signed for certificate

    We were hoping for a quick sale and before the end of September due to the stamp duty threshold reducing. The vendor and vendors solicitor seem to be wasting everyone's time and money :(
     
    Last edited: 17 Aug 2021
  8. Skillmister

    Capodecina

    Joined: 3 Oct 2009

    Posts: 19,815

    Location: Wales

    Gf has had an offer accepted on a house. She viewed it last week. Going with her for second viewing later this week. Has some potential access issues amongst other things so keen to see what the deal is on the ground then wait and see what the paperwork says. Unregistered property so chance it could be a minefield but if it is all OK it's got amazing potential
     
  9. montymint

    Don

    Joined: 29 Jul 2006

    Posts: 5,768

    Location: Newcastle, UK

    The long wait on the underwriting continues ...

    It feels like it's never-ending :(
     
  10. Buffman

    Sgarrista

    Joined: 4 May 2007

    Posts: 8,195

    Location: West Midlands

    Congrats, you buying with her? I seem to recall you posting some threads of your previous renovation. Still holding up well?
     
  11. R-evans

    Wise Guy

    Joined: 13 Nov 2012

    Posts: 2,032

    Weirdly the solicitor called me today (first time we've spoken over the phone) to ask if there's anything we'd like to push for in the contract. Shared the survey with her.
     
  12. Ahleckz

    Capodecina

    Joined: 7 Nov 2009

    Posts: 18,666

    Location: Glasgow

    So, after our previous house purchase fell through because they were occupying much more of the garden than belonged to them; my solicitor has been in touch to advise that the house we're now buying isn't occupying all of the garden that belongs to them.

    Looking at the plans and Google Maps, it seems a tiny slither and maybe due to hedges/trees. But, certainly nothing to be concerned about I don't think...
     
  13. Lonewolf

    Mobster

    Joined: 23 Feb 2004

    Posts: 3,559

    Location: Manchester

    Second valuation was exactly the same as the first but we liked the house so much that we are going ahead with the purchase. Have now booked a home survey and hope nothing major is found. Talk about a roller coaster ride!
     
  14. Skillmister

    Capodecina

    Joined: 3 Oct 2009

    Posts: 19,815

    Location: Wales

    Nah we've only been together since Jan. Not doing her conveyancing either as that would be a recipe for disaster!

    I'll have had my place 4 years in October.. Can't remember what I posted but not a lot has changed in the last 3 :o still plenty on the jobs list but nothing essential so the odd bits get done every now and then
     
  15. Peerzy

    Soldato

    Joined: 9 Nov 2008

    Posts: 6,953

    I guess this probably indicates you are paying £15k too much? Have you pushed back to see if they'll accept less?

    If you pull out the next buyers will have the same issue so meeting in the middle normally works out for everyone (assuming you can foot the extra in cash / equity).

    Are you allowed to do the conveyancing on your own purchases out of interest?
     
  16. Scam

    Capodecina

    Joined: 20 Oct 2002

    Posts: 14,764

    Location: London

    That's not really the case thought is it? The price is worth however much someone wants to pay for it. If the bank only wants to pay XXX amount for it, that's fine but someone else (or even another bank) might deem it worth that £15k higher.

    In fact aren't most bank valuations only done online, by averages for the area etc?
     
  17. 413x

    Capodecina

    Joined: 13 Jan 2010

    Posts: 23,501

    Location: Llaneirwg

    If my bank undervalued by 15k I certainly wouldn't be paying the original figure.
    You're asking for negative equity immediately.

    Obviously not sure if this is 15k on a million pound. House or a 100k House.

    Let's say it is 15k over valued. You buy it.
    You go to sell it in 5 years.
    You've made a loss.


    The house im in feel through because of the same. The advert was overvalued and it fell through because the bank wouldn't lend.

    It was re advertised.


    I just wouldn't do it myself unless it was a dream /forever home
     
  18. 413x

    Capodecina

    Joined: 13 Jan 2010

    Posts: 23,501

    Location: Llaneirwg

    It probably matters less to you if you already own? If prices drop your current would drop anyway.

    I was in this situation in Jan 2020.

    Pandemic kicking off, about to sign, real hesitancy over prices,especially as a FTB.

    I was sure that the pandemic would reduce prices. So sure if I hadn't been nearly there I'd have bailed.
    Didn't count on the government meddling. I mean prices should really have come down. Without furlough etc they would.

    Waiting might have been better for unrelated reasons (personal) but the message is you're gambling guessing on down turns.
     
  19. HangTime

    Man of Honour

    Joined: 25 Oct 2002

    Posts: 29,621

    Location: Hampshire

    Not necessarily, it depends how much you've borrowed. To be in negative equity from just a £15k reduction you'd need to be buying a cheap house with a very high LTV.
     
  20. HangTime

    Man of Honour

    Joined: 25 Oct 2002

    Posts: 29,621

    Location: Hampshire

    Yeah it's difficult, we bought our house in 2008 (credit crunch) and that meant taking a loss on the house we were selling and a short term dip in the value of the new house (I never had it valued, but it's a reasonable assumption). It's risen in value since then though obviously.

    The pandemic thing is interesting, I wrote on this forum over 14 months ago (https://forums.overclockers.co.uk/threads/impact-of-wfh-trends-on-housing-market.18889738/) that I expected rising demand for bigger homes away from the traditional employment hubs and that seems to have materialised. Looking back now with prices rising over 10% a year and a stamp duty holiday I'm sort of kicking myself a bit that we didn't upsize. I have quite a bit of cash sitting around doing nothing, had I invested in property we'd be making money hand over fist and have a nicer house to boot. However, it would have been pretty ballsy, especially with uncertainty about jobs etc. As you say, there was quite a lot of intervention with furlough and the stamp duty changes that really propped things up.