Own Home Scheme Pros and Cons

sideslipmike

sorry Mary is that your mortgage deed and also the exchange contract he`s sent you??

As i just had my mortgage deed contract sent to me last week, but nothing about asking for deposits as they are fully aware it will take 5 weeks before P4P will release the deposit monies. I do have to make a small difference between the mortgage and the P4P deposit but i aint parting with any money until i can negioate again as my survey picked up a few minor things.

We had a target date of the 28th Aug as are exchange date but we had just had the mortgage offer finally approved then and now we`re just sitting and waiting to see whats going on now haha?

that just sounds iffy?? maybe ladybird could shine some light on that as she has just exchanged and set a completion date

mary4kids

sideslipmike wrote: »

sorry Mary is that your mortgage deed and also the exchange contract he`s sent you??

As i just had my mortgage deed contract sent to me last week, but nothing about asking for deposits as they are fully aware it will take 5 weeks before P4P will release the deposit monies. I do have to make a small difference between the mortgage and the P4P deposit but i aint parting with any money until i can negioate again as my survey picked up a few minor things.

We had a target date of the 28th Aug as are exchange date but we had just had the mortgage offer finally approved then and now we`re just sitting and waiting to see whats going on now haha?

that just sounds iffy?? maybe ladybird could shine some light on that as she has just exchanged and set a completion date

I am writing exactly what it says on the document.
" It is usual upon exchange of contracts to pay a deposit of 10% but as you are not putting this amount which you are putting into the transaction the Vendors solicitors will accept the full amount which you are putting into the transaction. If however you fail to complete on the completion date you will be liable to pay the full amount of the ten per cent deposit as well as any interest referred to earlier. We accordingly look forward to receiving you remittance for the deposit of £1621. We shall require you remittance not less than two days before the completion date"
We have no date yet but I am sending the money tomorrow anyway. He sent mortgage deed, official copy of register of title, SDLT 1 form, Energy performance certificate, homecheck professional environment report and contract.
Ladybird can you confirm if anything missing please.
Sideslipmike hope that helps.

ladybird3

Sounds a bit different to the way things went for me in that I signed the deeds and contract etc etc about 6 weeks before exchange actually happened, after that there was the final mortgage offer then the cooling off period then the permission to proceed form which had to be signed and sent back to the solicitor and only then did the solicitor give me details to pay the deposit. On the day the deposit money cleared they then exchanged, prior to that they absolutely refused to discuss anything about negotiting completion as they said they couldnt legally set completion dates until exchange had taken place.
Maybe different solicitors do things differently though? I'm not really sure, have you been through the cooling off period yet Mary? if not it would seem a bit premature for the solicitors to be asking for money as there are still a few bits that would need to be signed etc
Everyone's situation is a little different tho so maybe just call them to talk it through?

londonIrish_5

Hi Ladybird,

Sorry to add to the questions...

But did the 10% deposit on exchange come out of the loan money...or did you have to pay this out of your own pocket?

ladybird3

One of the key points with this scheme is that you do not have to have a deposit, which is why it’s important to instruct a solicitor who understands the scheme and can communicate with the vendor from day one that there will not be a deposit at exchange.

However, in my situation (and also a few others I imagine) there was a shortfall between the mortgage I was allowed by the co-op and the percentage value from P4P, therefore I had to find a deposit to make up this shortfall. It just so happened that the shortfall amount worked out to be almost exactly 10% of the purchase price so I arranged to pay this at exchange as would occur in a regular purchase.

nig0609

The way i understand it, is that after exchange you are liable for 10% of the purchase price if you pull out. My vendor was happy to exchange with a deposit of 5%. In my case the shortfall i had to make up with a deposit was 14%

If you do not give a deposit and pull out after exchange, then it is alot harder for the seller to get his 10%, so i agree with Ladybird that it is important that you solicitor is familiar with the scheme and your vendor is made aware.

Just exchanged contracts (after vendor delaying over the weekend), still complete on the 18th of Sept! WOOHOO!

Good luck to everyone still going through!

Time-line for those curious:
Initial call to P4P Mid January
Letter for eligibilty call Mid May
Eligibilty interview Early June
Offer made and accepted 18-Jun
Mortgage application 18-Jun
Ownhome funds allocated 19-Jun
Mortgage app returned 23-Jun
Survey 09-Jul
Mortgage offer 14-Jul
On P4p 4 week wait 20-Jul
P4P Issue loan docs 14-Aug
7 day cooling off, P4P contract recd 20-Aug
Solicitors completed report 25-Aug
Final negotiations & exchange 07-Sep
Completion set for 18-Sep

Exactly 3 months from offer to completion, which isn't too bad.

Seacow_2

My 7 day cooling off period starts today. P4P received my final mortgage offer on the 14th of August

Steven.Morris7

Just fyi. As i'm exchanging and completing within 6 working days, the vendor has not requested a deposit...

ladybird3

Well done to those who have just exchanged! I really wish I was completing soon still 4 and a half weeks to go

Just a note adding to what nig said, if you pull out AFTER exchange it wouldnt be just the 10% that you would be liable for. In fact, it is almost unheard of for someone to pull out after exchange of contracts and you are liable to be sued if you do. the sale can also be forced through by the courts on top of that. DO NOT PULL OUT!
for an example of what happens search on the forums for a post entitled 'vendors pulled out AFTER exchange of contracts' will give you an idea of what this entails. . . . .! Not pretty!

Mary4kids have you heard anything more?

mary4kids

ladybird3 wrote: »

Well done to those who have just exchanged! I really wish I was completing soon still 4 and a half weeks to go

Just a note adding to what nig said, if you pull out AFTER exchange it wouldnt be just the 10% that you would be liable for. In fact, it is almost unheard of for someone to pull out after exchange of contracts and you are liable to be sued if you do. the sale can also be forced through by the courts on top of that. DO NOT PULL OUT!
for an example of what happens search on the forums for a post entitled 'vendors pulled out AFTER exchange of contracts' will give you an idea of what this entails. . . . .! Not pretty!

Mary4kids have you heard anything more?

Hiya Ladybird. Our cooling off period finished 24th of august. First our solicitor was so slow and then vendors of our vendors went to holiday. So they cant move out yet but our solicitor told them we have to complete by 20th of october as our mortgage offer is valid until 20th of october. We are keping our fingers crosses.