Deposit on New Build before completion

harvey115

I just got an update that my application has been forwarded to the Credit Check stage and that the valuation report has been processed as well.

Foolishly I have been searching for Home insurance to be ready with a quote when the time comes. Some may have left some footprints on my Credit Report

casslass

How you getting on with your application from Clydesdale? Have you had a decision yet? We are also in the process of getting a mortgage offer with them and the valuers were out today.

Many Thanks and good luck with your move. We also have a September entry date!

kingstreet

harvey115 wrote: »

I have been searching for Home insurance to be ready with a quote when the time comes. Some may have left some footprints on my Credit Report

Likely to be only unrecorded enquiries invisible to lenders. These are identification and address checks rather than credit checks.

harvey115

Here is what happened on my application:

1) Application received by Clydesdale
2) Initial checks fine and Valuation booked the next day
3) Valuation amount out of my bank account
4) Bank received valuation the next day of the appointment
5) Credit Checks done on me with full details of the mortgage amount and term
6) Application sent to underwriters (final stage, as I am told)

My advisor told me that the underwriter should finalise the offer and send within 4 to 5 days. They will then send the solicitor copy within a couple of days after that. So hopefully if all goes well I would expect my solicitor to receive the bundle by Wednesday-ish next week.

kingstreet

Thanks for the advice, I actually could not stop the temptation so signed up for Experian in case I need to do some explaining. I saw that even though I was getting quotes from price comparison site Liverpool Victoria Insurance did a generic check on my file and in comments it mention Insurance Quotation. So I guess this is okay but not something I expected.

The dilemma I was in was a little odd. The thing is in order to get a quotation on home insurance you need to insert your home address. However I am buying a New Build house so the post code is not published by post office yet and they are not going to publish the address until the house is complete (postman can throw in the post). So I have been using an address of the street next to it. So if I was to get searched on a different address, it would have caused an issue on my credit report but do not see that address on my experian report and Clydesdale uses experian only.

maninthestreet

If contract completion is not until September, has the house-build been completed or not? I assume it has, if a suvey has been carried out for your mortage, but then why can't contract completion occur before September?

harvey115

That's a good question.

Its not the contract completion the house has not completed yet. The house completion is driving the contract completion in this instance (I think applies to normally all new build houses).

The thing with new build is that the valuer can value the property by looking at properties on the same estate if the property you are buying is not complete. When I went to check the house after the surveyor did, the house had the internal wiring done but not internal walls have been installed yet and temporary stairs were in place for construction purposes.

Once the house completes in September that's when the contract completes as well.

maninthestreet

Why the rush to exchange contracts then?

kingstreet

In a typical newbuild situation, the developer wants contracts to be exchanged within 28 days of the reservation being made. They then have the confidence to fit out the property with the purchaser's choice of kitchen and bathroom fittings, decor and carpeting/flooring.

There can therefore be a long gap between exchange and completion, with the latter being "on notice" a short time after the build is finalised.

Trollfever

maninthestreet wrote: »

Why the rush to exchange contracts then?

Because the developer wants to get the sale included in their H1 sales!

harvey115

These guys are far better then what I can explain

Update:

I have just received the complete bundle from my solicitors with the 'Agreement' to sign and return. It also contains a TP1 Land Registry form already filled in by the solicitor. I was just after one thing.

The TP1 form has a section for signing (Section 13 execution). In there there is mention of my name and just below it details of witness. Is this a normal practice to provide witness sign on the form as well or should I leave this empty for the solicitor? I know it is a stupid question but just been wondering (FTB you see and very young).