Home Information Pack - how much?

dealornodeal_3

Question does the HIP pack also apply if you sell a property at auction?

BobProperty

dealornodeal wrote: »

Question does the HIP pack also apply if you sell a property at auction?

I think yes and no. The fact that it's an auction doesn't matter, the type and status of the property would be what counts. Single domestic house (including repos) would need one IMHO.

dealornodeal_3

Well IMHO it wont be worth the sellers, selling at auction; because we all know its sold at a discount to get rid of a property quickly. So you would be better off using estate agents!

So will this spell the end of auctions and bargains?

dnwilliams

zag2me wrote: »

Maybe, but it will help buyers. And for that reason I am all for it.

Governments don't introduce these things for the sake of it, they are trying to solve a problem. I say well done to them for having the balls to do it, but lets see how it goes first.

This is how it will affect buyers

AS A BUYER:

1. The arrival of Home Information Packs is likely to reduce the choice of properties on the market by 30% as sellers won't risk the loss of the cost of a HIP just to 'dip their toe in the water'. Reduced stock could mean increased prices.

2. When you look at the HIP on the house you're interested in making an offer on (if you can be bothered) it may not have legal searches in, or even details of leaseholds as these can take weeks to arrive, so what help will it be?

3. The government think the Energy Performance Certificate within the HIP, which will tell you things like "if you buy a new boiler for £3000, it'll save you £42 a year in running costs" is important to your decision-making, and that you are at a disadvantage without the report. Will you agree when you wade through 100 pages of a full HIP, when all you want to do it secure your purchase?

4. Your solicitors and your mortgage lender will tell you they still want you to pay for a mortgage valuation survey and up-to-date searches because the vendor's HIP is no use to them as the contents cannot be relied upon. Thus it has saved you 'not one penny'.

5. Of course, you may not even have your offer accepted on your proposed purchase anyway, because you haven't got a HIP on your own house yet. Remember, you can't start marketing yours for 14 days without your own HIP unless you break the law. Chains will become even more of a problem with the advent of HIPs, and sellers may prefer buyers with 'nothing to sell'

thesaint

I don't think it would make much difference at auction, as the properties are often listed months in advance of the auction taking place.If the survey were to be included in the pack, it would be an advantage to an auction property(if it were a positive survey).

BobProperty

dealornodeal wrote: »

Well IMHO it wont be worth the sellers, selling at auction; because we all know its sold at a discount to get rid of a property quickly. So you would be better off using estate agents!

So will this spell the end of auctions and bargains?

My concern is on repos from the sellers point of view. They are in serious financial difficulty but now they (if they are needing to sell quickly) or the mortgagor in possession (who also wants to sell quickly, one to get their money back and two to avoid the overhead costs that go with it) have to wait to put a HIP together. So from the point of the person who has been repossessed they have the following additional costs:
1. Extra month or two interest because of the delay
2. Cost of HIP (if they can get anyone to do it - think about that one)
3. Extra mortgagor costs in overheads and delays
So, at probably the worst economic time in their lives, they are subject to additional expense which did not occur previously.

BobProperty

thesaint wrote: »

I don't think it would make much difference at auction, as the properties are often listed months in advance of the auction taking place.If the survey were to be included in the pack, it would be an advantage to an auction property(if it were a positive survey).

Doh! Surveys aren't compulsory in HIPs. When will this get through to people or do I have to start using upper case. (Sorry saint, I know it's not just you)

dealornodeal_3

Bob I see where you are coming from with Repossession Property, but its the Mortgagee that will suffer, not the Building Society! I can also see more of that with the latest Interest Rate rises!

As a ex landlord ( thank goodness) I note in the property section of the evening news that there are now quite a few properties on the market for sale with tenants in situ! I think a lot of BTL landlords want out, which will have dire consequences on the market. A lot more properties for sale, and the long awaited crash?

BobProperty

dealornodeal wrote: »

Bob I see where you are coming from with Repossession Property, but its the Mortgagee that will suffer, not the Building Society! I can also see more of that with the latest Interest Rate rises!

As a ex landlord ( thank goodness) I note in the property section of the evening news that there are now quite a few properties on the market for sale with tenants in situ! I think a lot of BTL landlords want out, which will have dire consequences on the market. A lot more properties for sale, and the long awaited crash?

I would be pretty confident in saying there are more mortgagees on this site than Building Societies, and like I say, they will suffer more from these rules if things go wrong for them.
As for your other comments, I tend to agree with you.

tonydee

I think we can safely assume that BP is against HIP's. Like Canucklehead says though it's here to stay so we might as well get on with it. Any new system will have teething problems, just look at Vista!

If the EPC's bring awareness and change to peoples attitude to carbon emmissions then it can only be good.