Topic: The 'Eeeek...buying/saving for a house' thread

[Jake]

Well if you're just exchanging well in advance, then Redrow's solicitor/in house conveyancer would hold your deposit to order.

Gotta disagree with Craig here (for once ):

You exchange with your seller, she gets your deposit
She exchanges with Redrow, and gives your deposit to them as her deposit as by that time it is her money.

If she baulks on the completion date, then you've got legal recourse. It's pretty standard. The money goes from you to your solicitors client account, which then goes to Mrs Seller's solicitor's client account, which then goes to Redrow's inhouse conveyancer's client account.

Unless I've misunderstood.

[CraigDS]

Well if you're just exchanging well in advance, then Redrow's solicitor/in house conveyancer would hold your deposit to order.

It's nothing to do with Redrow though.

Basically it seems like the woman they are buying the house from has paid a deposit for her new house from cash she had, and has a certain date to pay a further deposit which she is sourcing from the sale of her house - so because of this Redrow are trying to pressure Grobbelrevell to pay them his deposit directly (i.e. not held by his or her solicitor).

To me that's not right at all, and I wouldn't be happy allowing my money to go out of my control and be used by someone else prior to me completing the purchase of the house.

[CraigDS]

Well if you're just exchanging well in advance, then Redrow's solicitor/in house conveyancer would hold your deposit to order.

Gotta disagree with Craig here (for once ):

You exchange with your seller, she gets your deposit
She exchanges with Redrow, and gives your deposit to them as her deposit as by that time it is her money.

If she baulks on the completion date, then you've got legal recourse. It's pretty standard. The money goes from you to your solicitors client account, which then goes to Mrs Seller's solicitor's client account, which then goes to Redrow's inhouse conveyancer's client account.

Unless I've misunderstood.

From what Grobbelrevell has said Redrow are putting pressure on them paying direct to them aren't they? Or have I misunderstood that?

[Jake]

But it's not your money once you've paid the deposit, it's hers.

Redrow shouldn't have contacted him, that's true.

I'm assuming the deposit she paid was just a small sum to hold it in her name, not a 10% deposit that you'd exchange on exchange.

[Jake]

From what Grobbelrevell has said Redrow are putting pressure on them paying direct to them aren't they? Or have I misunderstood that?

If that's the case then 100% don't do it.

I thought the money would go to her, then from her to them.

I used to be a conveyancer, we had a few new build clients and they were arseholes to be honest. The chain of deposits is normal, paying your deposit and missing out a link in the chain is 100% a no-no unless your solicitors are willing to give some pretty severe undertakings, and they probably wont.

[Chakan]

Sounds like it's a mess of situation and I would say be very very careful with giving any money to a 3rd party, especially if they aren't directly involved with the sale, which quite frankly they shouldn't be.

[CraigDS]

But it's not your money once you've paid the deposit, it's hers.

Redrow shouldn't have contacted him, that's true.

I'm assuming the deposit she paid was just a small sum to hold it in her name, not a 10% deposit that you'd exchange on exchange.

It's more the paying it directly to them part I've an issue with. Paying a deposit (10% usually) upon exchange is not a problem, but should be between solicitors rather than directly to someone further up the chain.

[Jake]

Yeah that's what I said, if it's directly to them don't do it, if it's to her and she wants to give it to them let her.

I read it that grobbel is uncomfortable that his money will move up the chain and he won't be moving in for months

[Grobbelrevell]

It's more the paying it directly to them part I've an issue with. Paying a deposit (10% usually) upon exchange is not a problem, but should be between solicitors rather than directly to someone further up the chain.

Okay, apologies if I wasn't clear. We're being driven to exchange contracts by Redrow indirectly. We haven't at any point spoken with them directly, but our solicitor and the estate agent have, and they've been passing on certain messages throughout the process. Our solicitor then informed us in the last day or two that our deposit will be required at this point (of exchange), and that the deposit would be "passed up the chain and protected by NHBC guarantee".

The "passed up the chain" part was interesting and seemed to me to be indicating that it was in fact going to Redrow. NHBC are certainly linked to them, with their website highlighting their role as; "to work with the house-building industry to raise the standards of new homes and to provide consumer protection for homebuyers".

So, where is our deposit going? Given that we won't actually be completing the purchase of our property until September, why would they request this now? Is that normal? And if so, will we be recompensed financially in any way (for interest lost etc)? Because, for me, I find it difficult to comprehend why i'm handing over significant sums 5 months ahead of a sale being completed.

As I said at the start, my understanding of this whole process is limited, so i'm more than happy for someone with a greater knowledge to tell me i'm woryying/moaning about nothing here and that it's all standard and nothing I should be concerned about.

[Jake]

Yeah unfortunately mate that is how it's going to happen, and it's perfectly regular, to avoid the term normal!

Your deposit is going to her when you exchange, when you exchange you guarantee a completion date. That's protected by law. What she does with that deposit money is her business, within restriction.

All you need to know is you've paid your deposit and your completion date is set.

[CraigDS]

Yeah unfortunately mate that is how it's going to happen, and it's perfectly regular, to avoid the term normal!

Your deposit is going to her when you exchange, when you exchange you guarantee a completion date. That's protected by law. What she does with that deposit money is her business, within restriction.

All you need to know is you've paid your deposit and your completion date is set.

Yup, this ^

How much deposit you paying?

It's perfectly 'normal', as what would normally happen is you'd also receive a deposit should you be selling a house and be part of the chain - given you're a first time buyer you don't have the benefit of this obviously.

As long as it goes through your solicitor, and they do their work properly, then you'll be fine.

[Grobbelrevell]

How much deposit you paying?

A little over 20%.

I've questioned this though and requested that we pay the minimum 10% at this point, with the rest upon completion.

[paddysour]

Trying to decide between continuing to save for a few years in order to get a 'dream house'. Or going for a more affordable home this year.

If I keep saving the pro is I get a better house, cons are I live with parent for much longer and interest rates may also rise which will negate my savings.
Move this year then I get out on my own, can overpay and finish the mortgage off much much quicker which means I could sell and use the deposit for the 'dream house'. But I'd be in a worse house and neighbourhood for 10-15 years.

Decisions decisions.

[killer-heels]

How many is a few year? 3? Interest rates may rise but not that much. Have you factored in price rises for the house in the area you want in those few years?

[SamAteTheRedAcid]

Anyone have any experience with bridging loans?

Found a house we want to buy and it is going to go very fast.

Our house is on the market but not sold yet. I am confident it will sell, it is an ideal house for first time buyers so I'd guess that a buyer would likely not have a chain. However, we want to be able to put a bid in on this house we've seen ASAP.

So glad we didn't do this, our house hasn't sold and it would have cost at least 2 grand a month.

Viewers are pissing me off though.

Woman who'd had two viewings already rang up for a third viewing at 6 last night. Booked her in for this morning, ten minutes before she's due to arrive get a message from the estate agent saying she's bought another house and won't be coming. What the fuck lady, why ring up after hours desperate for a third(!) look and then fuck it off in the morning, AFTER I've tidied and cleaned and moved loads of stuff into the shed? Silly billy.

[killer-heels]

What is the best metric to use when determining whether to pay off a mortgage (or overpay) on one property over another, when the loan amounts, term and value of the properties are different? Is it just the amount of interest you save if you paid off one property instead of the other?

[Jake]

At least now your house is tidy.

Going to the bank to open our savings accounts to get the deposit ball rolling tomorrow. Get decent £120 each bonus and a 6% interest account.

Study done the other day that shows only four homes in York are on the market that are both affordable and suitable to first time buyers.

[Mark Walters]

What is the best metric to use when determining whether to pay off a mortgage (or overpay) on one property over another, when the loan amounts, term and value of the properties are different? Is it just the amount of interest you save if you paid off one property instead of the other?

Doesn't it make sense to just pay off the more expensive one?

[killer-heels]

Doesn't it make sense to just pay off the more expensive one?

Its actually more of a case of overpaying per year rather than fully paying it off in one go.

[paddysour]

What is the best metric to use when determining whether to pay off a mortgage (or overpay) on one property over another, when the loan amounts, term and value of the properties are different? Is it just the amount of interest you save if you paid off one property instead of the other?

Plug the numbers in here

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

[wampa1]

Plug the numbers in here

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

If I overpay by £1000 a month I can be mortgage free in 5 years!  Time to take that second job...

[killer-heels]

I am not up to speed on my property law but i have a mortgage offer thats due to expire and the vendor who i am buying a house from is having difficulty getting all the legal stuff back in time for their own purchase. Is there a quick tenancy agreement or some sort of agreement that solicitors can draw up as i have agreed with the vendors that they can remain in the house until their purchase is sorted, as long as i can exhange contracts and sign the mortgage deeds?

[Jake]

I wouldn't do that if I were you, because then you'd exchange without a completion date and be left in a real struggle.

[killer-heels]

I wouldn't do that if I were you, because then you'd exchange without a completion date and be left in a real struggle.

Does the mortgage start from the date the contracts are exchanged?

[CraigDS]

You're better asking your solicitor - that's what you're paying them for!

[Jake]

No, the day they give you the money (which is completion day).

Best bet* would be to complete, and have a clause in the contract that upon completion, you'll enter into a rolling three month tenancy with them.

Even if you've to rent a temp place for an extra month or so, save more than mortgage fees all over again.

*In my rushed "not practised property law in a year or so" opinion

[killer-heels]

You're better asking your solicitor - that's what you're paying them for!

He is fucking useless

[killer-heels]

No, the day they give you the money (which is completion day).

Best bet* would be to complete, and have a clause in the contract that upon completion, you'll enter into a rolling three month tenancy with them.

Even if you've to rent a temp place for an extra month or so, save more than mortgage fees all over again.

*In my rushed "not practised property law in a year or so" opinion

I dont have anything to sell as i am going to rent my current house out once the vendors have left so there is no cost i will incur in that regard. Me and the vendor discussed exchanging and completing so that my purchase and their sale element goes through whilst the purchase of their property is still going through. Is that feasible?

[CraigDS]

He is fucking useless

Then get a new solicitor.

[killer-heels]

Then get a new solicitor.

I wish i did but its too late in the day.

[Jake]

I dont have anything to sell as i am going to rent my current house out once the vendors have left so there is no cost i will incur in that regard. Me and the vendor discussed exchanging and completing so that my purchase and their sale element goes through whilst the purchase of their property is still going through. Is that feasible?

So you don't have a chain behind you, just awaiting your seller. Your best bet is to push for completion, and you could always create a tenancy agreement that comes into force upon completion?

[killer-heels]

So you don't have a chain behind you, just awaiting your seller. Your best bet is to push for completion, and you could always create a tenancy agreement that comes into force upon completion?

Yeah thats most likely what ill be doing.

[Millie]

What's the score with making an offer on a property these days?  In other words what percentage should you offer as a starting offer?  Around 90%  of the asking price sound about right?

[SamAteTheRedAcid]

What's the score with making an offer on a property these days?  In other words what percentage should you offer as a starting offer?  Around 90%  of the asking price sound about right?

I've had people tell me I'm taking the piss using that rule

I've had a bid accepted on Saturday and the whole process is doing my head in already. Such a ballache.

[CraigDS]

What's the score with making an offer on a property these days?  In other words what percentage should you offer as a starting offer?  Around 90%  of the asking price sound about right?

How long has it been on the market? (Rightmove and Zoopla are normally good for this as will show the date it was first listed).

How desperate are the people to sell?

Unless it's in a massively popular area where it's likely it'll be snapped up, I'd always go in with a fairly low offer just to test the waters - especially if the house has been on the market a while, and if you're in a position to move the deal through (no chain, or have the finance ready, etc).

[Millie]

How long has it been on the market? (Rightmove and Zoopla are normally good for this as will show the date it was first listed).

How desperate are the people to sell?

Unless it's in a massively popular area where it's likely it'll be snapped up, I'd always go in with a fairly low offer just to test the waters - especially if the house has been on the market a while, and if you're in a position to move the deal through (no chain, or have the finance ready, etc).

Ok - its been on since April and we have all the finances sorted and we are in a position to move straight away.

Will go for 90% to test the waters I think.

[Claire.]

Did you get any info out of the estate agent? How many viewings/was there offers or any other interest etc?

I asked the woman who showed us our house out right what she thought it was worth, she didn't say any figures but I got enough from her to know they'd advised the seller they wouldn't get asking price.

[UntouchableLuis]

Anyone moved into a flat by themselves recently? I'm nearly 24 and hoping to move out next year but unless something radical happens it will probably be on my own which obviously isn't ideal money wise but I've saved quite a lot this year living with my family and will probably have a decent deposit this time next year to move into a flat and buy it rather than renting. What would people advise in my situation other than to get a bird and fast....

[Millie]

Did you get any info out of the estate agent? How many viewings/was there offers or any other interest etc?

I asked the woman who showed us our house out right what she thought it was worth, she didn't say any figures but I got enough from her to know they'd advised the seller they wouldn't get asking price.

Been told there is one other interested party - from the Agent

God its so stressful - really want the property but don't want to come over as over keen -

Also the Agent is not going to tell me what the other person has offered.

[Party Phil]

Anyone moved into a flat by themselves recently? I'm nearly 24 and hoping to move out next year but unless something radical happens it will probably be on my own which obviously isn't ideal money wise but I've saved quite a lot this year living with my family and will probably have a decent deposit this time next year to move into a flat and buy it rather than renting. What would people advise in my situation other than to get a bird and fast....

Remember to disassemble your wank station before your mum comes round