HELP-Wait or Proceed?

Yafeng

Our offer on a property has been accepted. We are first time buyers, and there is an upward chain, which hasn't been complete yet, because the seller on top hasn't found anything yet (this might take several months or more than half a year, as suggested by the seller). So it's possible that the chain may break. We have mortgage decision in principle and solicitor ready. But now the Estate Agent asks us to instruct our solicitor, do the survey and apply for the final mortgage from the bank. We feel it's unreasonable because if it falls out we'll lose all the money for mortgage, survey and solicitor.

Do you think if we should proceed as requested by the estate agent, or we should wait until the chain is complete? Thank you for your suggestions.

CloudCuckooLand

Ask if your vendor, or someone above, is planning to rent to allow the chain to proceed.

Without confirmation of the chain forming, you should wait.

TrickyDicky

Its all going to depend. If you definatly want to buy the house, whether it's this year or next year, theres nothing wrong with getting all that stuff ready and good to go. That way, you're ready when everyone else is ready and you cant be accused of dragging your heels. Bear in mind though that:

1. The sellers probably want you to do this so they can firm everything up. If you are refused a mortgage they need to find a new buyer.
2. Any mortgage offer you do get will only be valid for 6 months, so the chain needs to be ready to move and complete within this time.

If you think theres a chance the vendor could pull out (as happened to us) or you're not prepared to wait, give them a deadline for finding a house when you'll be looking around elsewhere.

Personally Id wait till at least the chain is complete with people all wanting to move. A failed mortgage application could really hamper this though!

livalicious

I can completely understand why you are a bit hesitant to start applying for the mortgage and instructing solicitors. We are FTB's too and 4 weeks ago had an offer accepted. The vendors hadnt found a property at that point, and because they wanted to move half way across the country, we knew it could take a bit of time.

Like you, we didnt want to apply for the mortgage as the booking fee and valuation had to be paid for upfront. A few years ago another purchase fell through and we lost about £500 on fees. However, we decided to go for it, because the vendor agreed that they would move into rented accomodation if they still hadnt found anywhere. We applied for the mortgage 4 weeks ago, and it was all approved only last week!

So far the only costs we have incurred are the booking fee and the valuation. If the vendor decided they werent going to move after all (which is what happened last year with another buyer!!!) then we would have to accept the loss of the valuation, but at least we would have a mortgage that we could possibly use on another property provided it wasnt for more than this one. We have yet to do a survey, and we have told the solicitors to hold off on searches/indemnity insurance until the vendors have their mortgage approved. Our solicitors are on a no sale-no fee agreement, so we dont lose out on that.

Its up to you to wait, but its a risk no matter what, anything could go wrong, but I would suggest getting the ball rolling, so you could have time to start looking at insurances (e.g building, life assurance, boiler cover, etc) and furniture (if like us you have none!) Its quite time consuming, and Im glad we got the mortgage and instructing solicitors out of the way to focus on that.

Good luck, I hope it all goes well!

blacksmith1980

The other way of looking is that you are going to have to instruct a solicitor to do searches anyway. You are also going to have to instruct a surveyor. might as well find out now if there is anything wrong. You wouldn't want to wait six months for the upwrd chain only to find there are issues with the property you want to buy....