Buying new build

tam2oo5

Hi

Im in the process of buying a new build house from persimmon -Today i went to reserve the property. They asked me who was my solicitor however ive not sorted this out yet. Ive only had the AIP from the lender and im going to now submit a full application - i was under the understanding a solicitor would be required after the mortgage application was granted?

Why are they wanting solicitor details?

Thanks

paddyrg

Almost certainly so they can suggest their pet one to you for a commission!

tam2oo5

Sorry what do you mean suggests pet one for a commision?

Cheers

GAH

Its always better to have your solicitor ready early on in the process.

I'd Imagine now you have paid your reserve, that you will need to exchange in 21/28 days? so having your solicitor ready is better.

Don't go with the builders solicitors.

tam2oo5

Well we havent paid for the reservation - We wanted to get the mortgage application submitted and accepted first before we pay for anything as the lawyer fees are £1000 pounds so this is obviously an expense we want to pay once the offer has been approved. Does this sound acceptable?

Richard_Webster

As a mortgage offer takes 2-4 weeks to come through they expect the solicitor to be have been instructed and carried out searches etc before mortgage offer comes out, so that when it does you can exchange contracts.

You have checked, haven't you, that the new property is good value as compared with similar fairly new houses in the area?

tam2oo5

Hi

Yes i was fairly happy with the value of the house - orginally valued at 130k and i managed to get 5% knocked off. Now i know that new builds are over priced as it is so its probably just a more realistic value than a discount.

My mortgage advisor has told me he could get the mortgage application submitted and approved within a week. Then we can start to move things forward with the property? is this correct.

He did say the full process can take upto about 8 weeks.

paddyrg

tam2oo5 wrote: »

Sorry what do you mean suggests pet one for a commision?

Cheers

I mean it's not uncommon for builders/etc to suggest you use a particular solicitor, but they will then take a commission from that practice for referrals, which you ultimately pay for one way or another! Whilst their advice oughtn't be any different for being 'mates' with the vendor, in that position I'd darn well want my own lawyer looking after my interests, not theirs.

hazyjo

tam2oo5 wrote: »

Hi

Yes i was fairly happy with the value of the house - orginally valued at 130k and i managed to get 5% knocked off. Now i know that new builds are over priced as it is so its probably just a more realistic value than a discount.

'Valued' by who? Do you mean the price the developer originally had it up for, or from your bank's valuer? Please check out sold prices of similar older properties nearby or you could find yourself deep in negative equity the second you step over the threshold... remember the minute it's yours, it's second hand and would lose that 'new' premium.

As above, use your own independent solicitor, etc.

Jx

pinkteapot

Normally when buying a house, you instruct your solicitor immediately. As soon as an offer is agreed, you simultaneously instruct a solicitor (and supply details to the builder/EA) and apply for your mortgage. That's probably why they asked for the solicitor details. Nothing too ominous about it. But as above, don't use a solicitor recommended by the builder.

tam2oo5

Well ive not went as far as getting the house valued yet, but im just going on what the house price was compared to others in the area and the others sold already in the scheme. Im sure others must have had the valuation passed by their bank so im assuming the price must be reasonable...

I will get an independent solicitor - Thanks for this advice.