Strange buying process for a house! any thoughts???

RAS

Early redemption penalty on the mortgage?

PasturesNew

He's probably doing it because of some tie in period on his existing fixed-interest mortgage deal.

His solicitor shouldn't let you move in after exchange as there are many dangers to him. And you.

One risk is if you lose your job, or a chunk of your pay, your mortgage would be withdrawn before completion.

david29dpo

My point exactly.

dawsinho

wow! so many replies. thanks.

ok, so it would seem like a good idea to ask the vendor to stump up the solicitors fees that i incur and possibly offer a lower price for the house factoring in the drop in property prices.

What happens if the seller still has a mortgage on the property and they stop paying ? - really don't know the answer to this..

What seller's solicitor will allow the buyer to move in before paying for the property????? - his solicitor it would seem.

Your mortgage offer will be conditional on vacant possession - also what happens if the seller is repossessed by the bank between now and then? - the house is vacant now. not to sure what would happen if the seller is repossessed by the bank between now and then. i get the impression that he owns the property outright as part of a portfolio.

If there is a tenancy agreement? not as far as i am aware.

Has the seller's mortgage lender agreed that the new owner can move in while they still have security over the property? again i get the impression that he owns the property outright.

What happens if the buyer can't get a mortgage in March? this is something that could pose a problem. If i was to get an agreement in writing, usually it will last 3 months, something i shall put to my solicitor and the estate agent.

I will get in touch with my solicitor (don't actually have one yet!) and explain the situation, see what feed back he gives me and check if the seller is willing to cover costs. Although it is unusual, these things happen and as long as both solicitors can draw up a contract that covers both our intrests i don't see a problem.

I will bring up the points covered above and post answers at somepoint throughout the week.

Thanks,

Phil

david29dpo

Dont forget to ask your solicitor how much all this extra work will cost!

jamtart6

my immediate thought on this is that they want to sell NOW for £200k (example) but it isnt convenient for them to complete until March...therefore instead of selling in March for £180k when it is convenient, they are doing it this way just for the extra cash. I'd be careful!

Trollfever

Darth_Marty wrote: »

Exchange and completion can be as far apart as both parties like. The simple fact is if both parties agree to this then there is no problem. Its not the norm but that doesnt make it a problem.

Agreed and with no problems in normal times.


But we are living in unprecedented times.

Darth_Marty

That we are, but life goes on.

dawsinho

jamtart6 wrote: »

my immediate thought on this is that they want to sell NOW for £200k (example) but it isnt convenient for them to complete until March...therefore instead of selling in March for £180k when it is convenient, they are doing it this way just for the extra cash. I'd be careful!

you do make a very good point. I shall put this to the estate agent tomorrow along with other points.

Ta

Phil

jamtart6

well, it may not drop at all, but judging by the past year, i'd say it would fall some (even if not as dramatically as my example) good luck and let us know how you get on