Property Buying - Protocol

[carolinefg]

You're right. I think I'll have to bite my tongue and arse lick. Then when I get the house, leave the estate agency a bad review.

You seem nice.

 

[standupsitdown]

They won’t just give you cash the house is basically their security for the loan, if you don’t make your repayments they will take the house. That’s why they will need to do a mortgage valuation on the property, to make sure it’s worth what they’re lending you and their loan is covered.

Is your uncle a cash buyer or is this purchase dependant on him selling something?

It’s a good idea to get your head around the concept of chains so you can understand where you fit in to the process and all the possible pitfalls and problems that may be out of your control.

Don’t rely on your brother for financial advice. Email a solicitor asking for a conveyancing quote, tell them all about the situation with the house you’re in, and the value of what you want to buy, and they will give you a breakdown of conveyancing fees and stamp duty. If the current ownership of the house you’re in is convoluted there will be additional legal fees.

I think you may have underestimated this process but it’s good that you’re seeking understanding and clarity. You’ll get there you just need to walk before you run. (assuming you’re not trolling)

 

[rlouisep9]

Thanks, do you think the mortgage lender would give me the full amount in cash so I could effectively walk up to the vendor as a cash buyer?

That's not how it works, a cash buyer is someone who doesn't need a mortgage to buy the house

 

[kadykal95]

Well if there are no buyers, there is no commission...Rightmove, Zoopla, On The Market all try and engage with buyers via advertising. I expect my custom to be appreciated and I think that's a reasonable expectation, as I am giving them a substantial amount of money.

Ultimately unless you have the 60k in your bank account right now then you're going to need to sort out the sale of the property you already own before doing anything else!

 

[Blahblahahaaa77]

I think you’ve misunderstood how a mortgage works … they don’t just give you the money! It’s a very complicated process and you’re not a cash buyer at any point.

 

[LennyBriscoe]

The way I am thinking of going forward is saying I am able to move in quickly but I can also wait a few weeks, as I have flexible circumstances with where I am at the moment. I can offer the full asking price and above. I already have an Agreement In Principle with my bank. I guess I was hesitant to mention the AIP as it felt like I was having to defend myself on affordability, which is certainly no issue!

I really hate the way it works with estate agents, if there are no buyers then there is no commission, they ought to realise that. My personal opinion is as long as I have them money then what is the problem and some houses sit on the !wrist desperate to be sold. I see that I will have to hold my tongue on this until the sale goes through!

I'd only leave a bad review if I got bad service. I did view a house last month (the estate agent said the seller would only move to the next stage if I'd viewed it) and the estate agent didn't seem to know much about the property at all. It was a terraced and he couldn't tell me exactly where the garden started!

I'm not used to being a submissive customer and as I said I am new to the process. Hence me asking on here about it

I don’t mean to sound rude but I’m beginning to see why the Estate Agents haven’t replied to your emails. Are you saying you’ll pay above the asking price for a house (because you’ve got an AIP)? That is not something anyone involved in buying or selling properties will hear very often so they probably aren’t taking you seriously. If you don’t have to move out of your current place straight away then I don’t understand the rush, unless it’s your ultimate property that you feel is the right one for you but I can’t see how you’d know that without viewings

ETA - I don’t think anyone is giving Gloria a hard time. People are allowed to think a situation sounds funny and if you post on here for advice, you’re going to get it along with people being curious about parts of the problem. People have written thoughtful responses - people from in the industry - so I’m not sure why it’s not “thanks for the advice, I’ve got a better understanding”

Not agreeing with someone is not giving them a hard time!

 

[rlouisep9]

And this is the reason it is so hard for first time buyers (of any age) to get on the ladder, we don't know the process so we ask to find out and when we do, our ideas are laughed at. I've never done it before so how would I know what's realistic or not?

I don't think that's true at all. It's hard because it's expensive, I'm in the South East and house prices are just ridiculous. But in terms of learning about the process, there's loads. That really isn't the hard part. You've already been told various places to look online (Martin Lewis being a key one for anything financial) and there is so much information online. I spoke to friends and family who had gone through buying in the last couple of years, who also recommended solicitors they had used.

Your mortgage advisor should also be talking the process through with you, if they aren't then I'd consider switching to a better one before you get started properly. They should really be doing that before you make any offers at all so you know what your next steps will be and make sure you have all of your relevant paperwork ready in case an offer is accepted.

 

[yankydoo]

What I don't get is why come and troll about buying a property? Surely there are more exciting topics to pick to cause controversy

 

[WilmaHun]

I'm buying alone , just for me , so not need for much space or things like nurseries.

The mortgage amount offered is enough alone to buy a house but I also would be using my cut from the sale of my current house as the less I borrow, the less my repayments will be. I'm also mindful that there will be solicitors' fees and I will want some money to redecorate and make the house my own. My brother reckons if you are a first time buyer you don't pay stamp duty.

If the worst came to the worst and my uncle wanted the house vacated, I guess we could stay in a hotel for a few weeks.

Unfortunately, 100% mortgages aren't something which are available so you won't be able to use a mortgage towards the whole cost of the house - you will need a deposit.

You can get 95% loan to value mortgages (5% deposit - 95% mortgage funded). This is actually what I am using myself for my purchase. However you need a good credit history to get one. Most common are 90% LTV (10% deposit, 90% loan to value) or 80% to 85% LTV.

I think you would benefit from speaking to a mortgage broker who can find a deal most suitable for you - they can also explain the mortgage process to you in more detail. The mortgage broker can consider your circumstances and look at a wide range of lenders to find a deal which is most appropriate for you - rather than you having to look at each individual lender yourself they'll be able to do that for you.

Another thing to consider is life insurance - it's always wise when having a mortgage to take out some form of life insurance to cover you should anything happen which prevents you from being able to keep up your mortgage payments - again, a broker can help with this.

Also - you say you could stay in a hotel - but remember, NOTHING in a house purchase is legally binding until exchange of contracts. Having your offer accepted does NOT legally mean the house is definitely yours. So I wouldn't consider staying in a hotel until you've exchanged and got a completion date - if you moved to a hotel before exchange you could end up being there for months on end until the conveyancing process reaches a point where it's ok to exchange!

 

[WilmaHun]

Didn't know she needed a solicitor until an hour ago and now you bring probate into it

I salute the masochist in you

I'm digging myself a hole now aren't i!

 

[LennyBriscoe]

And this is the reason it is so hard for first time buyers (of any age) to get on the ladder, we don't know the process so we ask to find out and when we do, our ideas are laughed at. I've never done it before so how would I know what's realistic or not?

I don’t think anyone’s laughing at you at all, I’m not convinced this is a genuine thread either - it’s coming across as pretty far-fetched and tbh your story keeps changing. I think you’re being pretty unfair.

If I were you I’d be inclined to thank everyone for the detailed replies, get in touch with your MB (if you’re in a position to do so in terms of moving forward) and try to accept that you will have to view and you will have to deal with Estate Agents and you will have to be patient. It will be worth it in the end.

 

[JoeBloggs]

As someone has pointed out, offering above asking doesn’t mean much until it’s valued. If you offer more than it’s valued at you wont get the mortgage for that.

Are you relying on the sale of your current house for the deposit on somewhere new? Have the preparations started for the sale? Also, are you sure your uncle will not mind you staying once’s it’s bought? People change once things go through. If he has plans he may want you out and he has ever legal right to. You would also technically be a sitting tenant which is not good for him.

 

[Wowitsme]

I was a cash buyer, I certainly did not walk up to the owners of my now house with a suitcase full of cash . There is a wire transaction from cash buyers bank account to solicitors to sellers solicitors.

I believe for a mortgage property this is done between the bank and solicitors and you will wire transferdeposit.

I can’t even comprehend a 26 year old believing you walk to sellers with a suitcase of cash........

 

[standupsitdown]

Did your MB arrange a viewing or did you just buy based on the details in the listing?

You don’t seem to want to attend viewings, I hope you don’t mind me asking if it’s personal, but is there a reason for this?

 

[standupsitdown]

I worry that OP is a sitting duck for being taken advantage of. They sound very naive. I’m hoping the uncle wouldn’t do that, but vendors might. I know you think your house is falling apart, but it’s definitely worth getting some valuations to make sure you’re getting market price.

I would forget about the concept of ‘a few weeks’ in terms of timescales. In my experience of house buying selling, everything takes months, and even then can all fall apart at the last minute. It’s not a process for the faint hearted.

AIP isn’t the same as proof of funds - it’s a very competitive market and a lot of vendors want proof that you have access to the money. Lenders withdraw or amend offers all the time, and it can take them weeks to do so.

Any offer is only as good as the buyers personal situation, and I’m sorry OP but yours isn’t great - a bit complicated for a vendor to engage with when they could accept a cash offer or a chain of one that’s already SSTC.

We’ve just sold a house and the buyers had to wait a long time for probate - our solicitor told us there are long delays at the moment. But then solicitors aren’t know for their speedy actions (no offence sols)

 

[LennyBriscoe]

I’ll never understand why people do it - it’s maybe the attention or the high number of notifications

Whatever’s going on, I’m sure another FTB will stumble across it and read all the good advice!

 

[Gloria Rostron]

There will be minimum of 10 others at any given time looking at that property, and you need to showcase why you're the most suitable option

The way I am thinking of going forward is saying I am able to move in quickly but I can also wait a few weeks, as I have flexible circumstances with where I am at the moment. I can offer the full asking price and above. I already have an Agreement In Principle with my bank. I guess I was hesitant to mention the AIP as it felt like I was having to defend myself on affordability, which is certainly no issue!

I really hate the way it works with estate agents, if there are no buyers then there is no commission, they ought to realise that. My personal opinion is as long as I have them money then what is the problem and some houses sit on the !wrist desperate to be sold. I see that I will have to hold my tongue on this until the sale goes through!

I'd only leave a bad review if I got bad service. I did view a house last month (the estate agent said the seller would only move to the next stage if I'd viewed it) and the estate agent didn't seem to know much about the property at all. It was a terraced and he couldn't tell me exactly where the garden started!

I'm not used to being a submissive customer and as I said I am new to the process. Hence me asking on here about it

 

[rlouisep9]

Probably getting a suitcase filled with 60k off the uncle.

60k isn't too bad, my mortgage application is for £220k wonder how many suitcases that would fill

 

[Giggling Squid]

I'm buying alone , just for me , so not need for much space or things like nurseries.

The mortgage amount offered is enough alone to buy a house but I also would be using my cut from the sale of my current house as the less I borrow, the less my repayments will be. I'm also mindful that there will be solicitors' fees and I will want some money to redecorate and make the house my own. My brother reckons if you are a first time buyer you don't pay stamp duty.

If the worst came to the worst and my uncle wanted the house vacated, I guess we could stay in a hotel for a few weeks.

SDLTis only not paid up to a certain property value if you’re a first time buyer. If you’ve inherited the house youre living in you might not quality so would have to pay stamp duty on anything over (?)£125000.

 

[Kim Mild]

We've sold and bought recently, and I've booked viewings through email / phone calls. If someone has viewed then someone has seen them and the sellers/ agents know there is an actual potential buyer, rather than a fantasist behind a computer screen . Sometimes they ask for proof you are in a position to proceed like mortgage in principle .
I know covid has made things a bit different in terms of viewings.

I would suggest getting in touch with agents so they know you are a potential customer and going on their alert lists . Make sure you are emailing the correct address as it may be goito a generic mailbox that doesn't get monitored often .

Have you considered purchasing at auction?

Good luck.