The nervous wait to exchange....

[mattyfez]

That is handy ty.

When does the survey get done to find any issues with the property? Do you need to pay for a survey before you even make an offer? (presumably it affects the price) But then you can go round paying for surveys on houses you never end up buying? Doesn't make sense?

Makes perfect sense, and there's no hard and fast rule.

I can only give you my personal examples purchasing:

example 1:

• I offered asking price 'subject to survey results'
• offer was accepted by the seller, as i provided evidence that I had the capital to buy/had a mortgage offer
• I paid 500 or something for a survey that came back with a lot of work, suggesting the house was about 15% over priced, compared to simmilar properties in the area
• I asked for x discount on the asking price relative to the repair bill
• seller refused
• I walked away from the sale -£500

example 2:

• I offered asking price 'subject to survey results'
• offer was accepted by the seller
• I paid 500 or something for a survey that came back with no real issues apart from the standard blurb
• I then employed a local conveyance solicitor and they basically handled it from there in and it was a fairly simple chain free process.

Note:
One big advantage with my successful purchase, was the seller insisted on doing her own viewings, which I thought was a bit odd, but she was nice and we exchanged email addresses.. this deffinatley helped both parties with stress further down the line, as inevitably someting will get confused or the agent or one parties solicitors might be slack, so we were in contact with each other off and on during the process, and kicking our respective solicitors up the bum if things wen't moving fast enough.

 

[mattyfez]

YOU have to pay for searches, surveyors etc etc even if the sale falls through

Not strictly true, my solicitor took a £300 deposit, and did me a deal where if the purchase fell through, I wouldn't owe them any more... but still, + the survey I arranged, I still would have been circa £800 out of pocket if it fell through, not to mention a few months wasted time in a fast moving market.

EDIT, I wouldn't worry about searches untill after your happy with the price and the survey. Your solicitor will do all the searches for you - most will offer a fixed price package to see the sale through, and just take a non-refundable deposit to start work.

 

[b0rn2sk8]

That is handy ty.

When does the survey get done to find any issues with the property? Do you need to pay for a survey before you even make an offer? (presumably it affects the price) But then you can go round paying for surveys on houses you never end up buying? Doesn't make sense?

No, in England the survey is part of your due diligence after you agree a sale in principle.

If there is something on the survey that requires attention you can re-negotiate. Unless it’s a very serious issue, sellers in the current market will probably tell you to go fly a kite though.

 

[b0rn2sk8]

It ultimately comes down to if you want to drag it out or get it done. If people are in the same page, you can get the conveyancing process done in under 6 weeks. That’s ultimately down to you and the other parties in the transaction.

At the end of the day someone could pull out the day before exchange, give absolutely no reason whatsoever and it happens all the time. That’s the cost of doing business in England unfortunately. If you buy enough houses, you’ll probably get burnt at some point.

In Scotland it’s completely different, a lot of the work is done upfront by the sellers solicitor at the cost of the seller and is passed to the buyer.

 

[jonneymendoza]

It ultimately comes down to if you want to drag it out or get it done. If people are in the same page, you can get the conveyancing process done in under 6 weeks. That’s ultimately down to you and the other parties in the transaction.

At the end of the day someone could pull out the day before exchange, give absolutely no reason whatsoever and it happens all the time. That’s the cost of doing business in England unfortunately. If you buy enough houses, you’ll probably get burnt at some point.

In Scotland it’s completely different, a lot of the work is done upfront by the sellers solicitor at the cost of the seller and is passed to the buyer.

In scotland it is also legally binding after an offer is acceppted? is this true?

 

[mattyfez]

In scotland it is also legally binding after an offer is acceppted? is this true?

I dunno about Scotland, but it sounds simmilar to how they do it in Canada.. the purchaser basically has to give a huge deposit cheque/bankers draft/mortgage downpayment to the sellers solicitors, so if they buyer pulls out without 'good and proper reason' the cheque gets cashed and given to the seller as compensation. It's very harsh but it certainly discourages time wasters!

Likewise, the seller is on the hook in a simmilar deal, for the same amount if they suddenly decide not to sell at the 11th hour.

 

[FNG]

No that is not true in Scotland, although often said. In Scotland you agree missives and once they are agreed then it becomes binding. Missives are much more standardised; basically there are a number of standard ones, which can be removed with agreement of both parties, and non-standard ones, which can be added by either side. Offers can only be made via a solicitor, so carry a bit more weight I guess. Once an offer is accepted then no other viewings are allowed to the house, including by the person who made the offer.

 

[Liquid_Entity]

Well things moved quickly since last week. Cash buyer right in the middle of guide price range so now I am seeking new property asap.

I've now put in a cheeky 5k under guide price offer on a property !!

 

[Itchytrigg]

Our sellers had enough of their seller (as this is now his 2nd property he’s dropped out of) and pulled out of their purchase.

However…they’re seeing a vacant property that already has probate granted and if they go ahead could still complete before end of September…so we’re not dead in the water hopefully

 

[CaptainRAVE]

Our sellers had enough of their seller (as this is now his 2nd property he’s dropped out of) and pulled out of their purchase.

However…they’re seeing a vacant property that already has probate granted and if they go ahead could still complete before end of September…so we’re not dead in the water hopefully

Fingers crossed!

Our lot seem to be taking an eternity to decide on a completion date which is exactly why we wanted it already discussed while the paperwork was finalising. If its not next week it’s going to be highly irritating. I’ve suggested to my wife lowering our offer if they keep messing us around, but I’m not sure she’ll go for it.

 

[Itchytrigg]

Fingers crossed!

Our lot seem to be taking an eternity to decide on a completion date which is exactly why we wanted it already discussed while the paperwork was finalising. If its not next week it’s going to be highly irritating. I’ve suggested to my wife lowering our offer if they keep messing us around, but I’m not sure she’ll go for it.

Cheers.

Fingers crossed for you too, weird for not even rough dates being discussed already. Not sure if I’d lower an offer but would be certainly be passing on a date you want and then push for agreement/other suggestions.

 

[CaptainRAVE]

Cheers.

Fingers crossed for you too, weird for not even rough dates being discussed already. Not sure if I’d lower an offer but would be certainly be passing on a date you want and then push for agreement/other suggestions.

Thanks. We’ve basically told them ASAP which as their EA says should be next week. Hopefully we hear today or it seems unlikely we’ll exchange today/tomorrow. I’m really not in a hurry to go through all this again that’s for sure.

 

[Itchytrigg]

I think some people take asap to just mean “when ever you feel like it”. Give them a deadline and you typically get agreement or argument, but it gets it discussed rather than ignored.

 

[grudas]

I think some people take asap to just mean “when ever you feel like it”. Give them a deadline and you typically get agreement or argument, but it gets it discussed rather than ignored.

Yup. We said we need out of our rental by xyz date. Then our solicitors took it to their hands and said something similar which really pushed the date forward.

 

[jonneymendoza]

Bank of England saying we will have a recession by October/Nov time...

Are we stupid to be buying? There's a few of us here about to buy...

What are the implications of owning a property during recession? Or in the process of buying one?

 

[Itchytrigg]

I hope not…at least we’ve a locked interest rate at the start of it. I’d hate to be coming out of a good rate in Oct/Noc time.

We locked in a 2.6% 5 year deal with our offer in April.

If the house falls though then I’d probably sit out as I’d not get anywhere near that now…and hope my land lord doesn’t raise rent!

 

[Irish_Tom]

Bank of England saying we will have a recession by October/Nov time...

Are we stupid to be buying? There's a few of us here about to buy...

What are the implications of owning a property during recession? Or in the process of buying one?

It entirely depends on your personal circumstances:

• How secure is you job and/or that of your partner (if you have one).
• What’s your LTV like?
• How long-term do you see the property you’re buying?
• Could you cope with a few years of negative equity if the housing market dipped?
• How long is your mortgage rate fixed for (if at all) and could you afford a higher rate when the fixed comes to an end?
• Are you relying on the property as an investment?
• Do you have savings or an emergency fund to cover the mortgage for a few months?
• What would the alternative be? Renting at a rate higher than the mortgage payments? Living with family or in shared accommodation?

We’re very much going into this house purchase for the medium–to–long term; our LTV is just over 50% so it’s unlikely we will see negative equity; my wife and I both have fairly secure jobs (although I’d never say they are guaranteed recession-proof); even if interest rates are closer to 5% in five years time, we should be able to afford the monthly repayments; we have a decent chunk of savings that could act as a float if we needed it.

So we’re basically looking to ride out the storm. We survived 2008 so can be naïvely optimistic about whatever 2022/23 is going to throw at us.

Your circumstances may be different, but I think that last question is the most important — what’s the alternative?

 

[b0rn2sk8]

Bank of England saying we will have a recession by October/Nov time...

Are we stupid to be buying? There's a few of us here about to buy...

What are the implications of owning a property during recession? Or in the process of buying one?

Do you rent right now? If so I’d buy regardless.

A recession might mean people lose their jobs but it’s difficult to say in reality. It depends on how bad and for how long. The last recession was due to a credit bubble, this one is due to a shortage of materials and fuel. It will be different and different to what happened during covid.

Ultimately it’s highly dependent on circumstances. In reality most people were were not materially impacted by the last recession outside of a drop in the housing market. A drop in the housing market is likely to be temporary and only relevant if you want to sell.

To be perfectly honest, I’d only be concerned if I was particularly exposed.

 

[jonneymendoza]

It entirely depends on your personal circumstances:

• How secure is you job and/or that of your partner (if you have one).
• What’s your LTV like?
• How long-term do you see the property you’re buying?
• Could you cope with a few years of negative equity if the housing market dipped?
• How long is your mortgage rate fixed for (if at all) and could you afford a higher rate when the fixed comes to an end?
• Are you relying on the property as an investment?
• Do you have savings or an emergency fund to cover the mortgage for a few months?
• What would the alternative be? Renting at a rate higher than the mortgage payments? Living with family or in shared accommodation?

We’re very much going into this house purchase for the medium–to–long term; our LTV is just over 50% so it’s unlikely we will see negative equity; my wife and I both have fairly secure jobs (although I’d never say they are guaranteed recession-proof); even if interest rates are closer to 5% in five years time, we should be able to afford the monthly repayments; we have a decent chunk of savings that could act as a float if we needed it.

So we’re basically looking to ride out the storm. We survived 2008 so can be naïvely optimistic about whatever 2022/23 is going to throw at us.

Your circumstances may be different, but I think that last question is the most important — what’s the alternative?

• How secure is you job and/or that of your partner (if you have one). not secure, im a freelancer but the field i work in is in high demand for my skillsets at the moment. My partner is in a very very stable perm job though .
• What’s your LTV like? 85%
• How long-term do you see the property you’re buying? 10+ years at least
• Could you cope with a few years of negative equity if the housing market dipped? cope as in how? Would my mortgage repayments go up etc during the fixed term? Or go up when its time to renew? Does it make sense to overpay as much as possible during the 5 years?
• How long is your mortgage rate fixed for (if at all) and could you afford a higher rate when the fixed comes to an end? 5 years if this offer goes through the finishing line
• Are you relying on the property as an investment? no not on the short term. Its going to be our home for a while
• Do you have savings or an emergency fund to cover the mortgage for a few months? Plenty. enough to pay the bills for a couple of years or more if im honest
• What would the alternative be? Renting at a rate higher than the mortgage payments? Living with family or in shared accommodation? Renting

Do you rent right now? If so I’d buy regardless.

A recession might mean people lose their jobs but it’s difficult to say in reality. It depends on how bad and for how long. The last recession was due to a credit bubble, this one is due to a shortage of materials and fuel. It will be different and different to what happened during covid.

Ultimately it’s highly dependent on circumstances. In reality most people were were not materially impacted by the last recession outside of a drop in the housing market. A drop in the housing market is likely to be temporary and only relevant if you want to sell.

To be perfectly honest, I’d only be concerned if I was particularly exposed.

Yes i rent right now and looking to buy my first place

 

[Mr Jack]

What are the implications of owning a property during recession? Or in the process of buying one?

The current risks are:

1. Loss of income. Is your (and your partner's, if relevant) job likely to be secure in the recession? If not, then defaulting on the mortgage can cost you a lot.
2. Rapid rise in interest rates. Likely to be a significant problem for many, but as a new buyer you have the option of taking a fixed rate mortgage that should take you through to the other side. Ensure you borrow at a level where 5% or 7% interest rates after that fixed period aren't going to cause you issues.
3. Negative equity. Recessions usually lead to a fall in house prices. If you think you may want to move again (or are forced to) in the short to medium term this may be a big problem, however if you think this is your long term home then it'll come out in the wash in the coming years.

It's up to you how much you care about these potential issues.