FREQUENTLY
ASKED QUESTIONS
Please click the links below for answers to the frequently
asked questions:
- How long will it take?
- How do I check about fixtures and fittings?
- Should I have a survey done?
- Why is a written mortgage offer so important?
- Is a deposit really necessary?
- How do I sort out keys?
- What do I do about buildings insurance?
- Why does completion have to take place
on a working day?
- When do agents, conveyancers and lenders
have to be paid?
- Can I take my secured loan to my new property?
How long will it take?
Until contracts are exchanged,
the answer has to be "we don't know". It is impossible to guess how
long the sale or purchase will take until all the loose ends are sorted
out.
If a buyer has ready cash and the property is empty, completion can
take place in a matter of days, but where a chain is involved, or a
mortgage hard to come by, weeks can go by with apparently little progress
being made.
It is useful from the outset to establish whether the chain of buyers
and sellers is complete and whether all concerned are likely to make
satisfactory financial arrangements without undue delay.
Final arrangements for moving should not be made until contracts have
been exchanged and a definite completion date has been agreed.
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How do I check about fixtures and fittings?
It is important that you know what is included or excluded in the sale
price. It often causes great annoyance and trouble if items such as
bathroom cabinet or wall lights are removed unexpectedly. The seller
will be asked to complete a list, but it is advisable to get together
with the seller, to discuss these matters in detail.
There are no guarantees that all items included are in full working
order. E.g. a shower
or a cooker.
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Should I have a survey done?
The old phrase "buyers beware" applies to a house purchase. If
there is found to be anything wrong with the property after the exchange
of contracts the seller is not liable and the buyer will have to pay
for any necessary repairs.
If you have a mortgage, a valuer will inspect the property
on behalf of the lender. It is not advisable to rely on the valuation
report alone because the condition of the property is not considered
in detail. However, it is often possible, for an extra fee, to arrange
for the valuer to carry out a more detailed inspection called a "Home
Buyers Report". If the property is very old and needs extensive
repairs a full structural survey would be wise.
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Why is a written mortgage offer so important?
Before we commit you to buying the property we need written confirmation
that your lender will provide the funds you require, and upon what
terms. There are often many conditions in the offer that need to be
satisfied before the funds are released, such as work to be carried
out to the property, or details of new life insurance policies being
provided, or details of buildings insurance. You must also be happy
with the product being offered, and be sure that you can afford the
payments.
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Is a deposit really necessary?
When contracts are exchanged a deposit is paid over to the seller's
conveyancer as a down payment on the property.
If you fail to complete the purchase on time, the seller can ultimately
keep this deposit, as part compensation. The seller's conveyancer will
often ask for at least 5% of the price.
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How do I sort out keys?
Unless special arrangements are made, the keys are handed over on the
completion day in exchange for the purchase money - the seller having
previously deposited a set of keys with the estate agents. It frequently
happens that this is not convenient and the seller will hand them direct
to the buyer. It is important that you agree to these arrangements
prior to the completion. There is nothing worse than waiting outside
a house with the removal van and not being able to get in!
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What do I do about buildings insurance?
A property should be insured by the buyer from exchange of contracts.
Houses should be insured not necessarily for the price paid but for
the estimated cost of rebuilding following a fire, to include clearing
away damage and architect's fees. Sometimes this is greater than the
actual market value. If you have a mortgage, the lender can deal with
this, otherwise you will need to make your own arrangements as quickly
as possible.
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Why does completion have to take place on a working day?
When the purchase monies are paid over for the property to the seller's
conveyancer, the buyer and their lender expect to get a vacant property
in return, on the same day. At present, the banks only transfer money
electronically on a working day, and therefore completion cannot take
place on a weekend.
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When do agents, lenders and conveyancers have to be paid?
On a sale, when contracts have been exchanged, the estate agent will
submit their invoice to us, and in turn, we will then prepare a final
completion statement. This will set out all the figures involved, including
the amounts required to redeem any mortgages on the completion date.
On a purchase, a final completion statement will be prepared and sent
to you for approval, once all the figures have been agreed, including
the net amount of any mortgage advance.
We will then ask you to send us the balance required
(if any) to complete the transaction including legal fees and out of
pocket expenses for the work we do for you and the lender. The balance
on a sale or purchase must be received by us at least a week before
the completion date.
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Can I take my secured loan to my new property?
All secured loans outstanding on a property must be paid off out of
the sale proceeds unless the lender concerned agrees to secure the
loan on your new property. This may take some time for the lender to
organise, and if you want to do this you should contact the lender
for consent as quickly as possible. When the lender gives its approval,
the lender will send written instructions to us. The sale cannot proceed
to exchange of contracts until this approval has been received.
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