First Time Buyer..Almost In

Sealo

Just had a letter from my Solicitor

I propose sending my Certificate of Title to Abbey requesting the mortgage advance for completion on Wednesday 15th December.

So what point am I up to?

Also he has asked about house insurance which I know i need before completion. But when ever I get prices they all want policy start dates, Which I don't have as I have no completion dates. So what is the best route, do I buy the insurance and ask not to start until I move in but I don't have a date....Can this be done etc,

Just all getting a bit real and don't want to seem as messing people about.

Thanks in advance.

G

Senior_Paper_Monitor

You should have insurance in place (i.e on risk) at 'exchange' rather than 'completion'.

Should the property burn down in between, you will be legally responsible for buying a pile of smouldering bricks.

If your (their) solicitor has not explained this he is not doing his/her job.

Insurance can be arranged with on risk date TBA, a phonecall to action date when known and fax advice to solicitor.

The things that 'on line insurance sites' don't explain !!!

GMS

As Senior points out the comparison sites do not give any information or advice.

Get your insurance in place asap.

Speak to your solicitor to see where they are up to. They will be th only person who can give the correct answer.

Typhoon2000

Senior_Paper_Monitor wrote: »

You should have insurance in place (i.e on risk) at 'exchange' rather than 'completion'.

Should the property burn down in between, you will be legally responsible for buying a pile of smouldering bricks.

I can't see a mortage company lending on a pile of rubble if the house were to collapses before completion (clearly the property will not be as described and the vendor is obliged to sell you a house on completion not a plot of land). And any building insurance will cover rebuilding cost, not the purchase price.

GMS

Typhoon2000 wrote: »

I can't see a mortage company lending on a pile of rubble if the house were to collapses before completion (clearly the property will not be as described and the vendor is obliged to sell you a house on completion not a plot of land). And any building insurance will cover rebuilding cost, not the purchase price.

Anything could happen. Truck hits it, flood, wind, fire etc. Ridiculous to suggest the lender would not lend if it could collapse.
All you would want from an insurance company is the rebuilding cost, not the money back for the purchase. The land value is included in the purchase price which would still be there if the house collapsed.

Clearly you think the information you have been given is incorrect and that you knwo better. If you know the answers don't ask the questions.

Typhoon2000

GMS wrote: »

Anything could happen. Truck hits it, flood, wind, fire etc. Ridiculous to suggest the lender would not lend if it could collapse.

Are you suggesting that a mortgage company would lend money on a property that no longer exists on the day of completion???

I was reponding to the previous post that says that you are legally obliged to buy the property if it burnt to the ground between the exchange date and completion date, and you need insurance to cover the fact that you may be buy a pile of bricks on completion.

Senior_Paper_Monitor

No, the lender won't lend - that is the problem !

The OP will still be liable to complete the purchase contractually but unable to do so !

Trust me - he needs to insure from the day of exchange !

Typhoon2000

Thats what I am saying, the lender wont lend and the building insurance will only pay rebuilding costs, not the amount to buy the property (which you would need to find if the lender wont lend).

Thats why I am saying if the property burns down to the ground between exchange date and completeion date, then you are no longer obliged to buy the thing.

GMS

Typhoon2000 wrote: »

Thats what I am saying, the lender wont lend and the building insurance will only pay rebuilding costs, not the amount to buy the property (which you would need to find if the lender wont lend).

Thats why I am saying if the property burns down to the ground between exchange date and completeion date, then you are no longer obliged to buy the thing.

Completion could be delayed if necessary. The insurance would cover the rebuild costs therefore the security would be reinstated.

Once exchange has taken place the vendor is not responsible for the property.

Typhoon2000

GMS wrote: »

Completion could be delayed if necessary. The insurance would cover the rebuild costs therefore the security would be reinstated.

Once exchange has taken place the vendor is not responsible for the property.

Would the mortgage offer still be vaild after the time it take to rebuild the property? What if the the mortgage company says 6 month is up, offer has expired. And no one will now lend to you. Are you still obliged to buy the propery?

So as a vendor I can strip the place down all fixtures and fitting before completion but after exchange because I am not responsible for the property once exchange has taken place, and the buyer is still obliged to buy it??

GMS

Typhoon2000 wrote: »

Would the mortgage offer still be vaild after the time it take to rebuild the property? What if the the mortgage company says 6 month is up, offer has expired. And no one will now lend to you. Are you still obliged to buy the propery?

So as a vendor I can strip the place down all fixtures and fitting before completion but after exchange because I am not responsible for the property once exchange has taken place, and the buyer is still obliged to buy it??

Mortgage company would make a decision on what they would do but in exceptional circumstances there would be grounds for an extension. Exchange of contracts is the point of no return. Never known a situation like this scenario but that is why insurance should be in place.

As for stripping the fittings as the vendor. You can take items not listed on the inventory which is agreed prior to exchange. If you take items which are listed then you would be in breach of the contract.

My knowledge of this is limited but I am sure there will be somebody with a definitive answer who will come along later.