Payment allocation on completion / Repo and BKY involved

Mike_St_Helens

Hi all... Im new over this neck of the woods.. my isnt it posh !

Does anyone know the allocation of payments when you complete

ie :

Solicitor gets paid
Estate agent gets paid
Bank gets paid
You get whats left

OR

Bank gets theirs
Solicitor
Estate agent

Now what would happen if there wasnt enough funds to clear all of them ? Does the solicitor pay themselves, the estate agent and the bank gets the rest... leaving you with the shortfall to pay with the bank ?

Thanks all.....

scope

You will get a final statement from the solicitor which will ensure there is enough money about to cover everything.. Completion will not happen until all the money has been paid to the solicitor.

silvercar

1. bank
2. solicitor
3. estate agent
4. You

silvercar

scope wrote: »

You will get a final statement from the solicitor which will ensure there is enough money about to cover everything.. Completion will not happen until all the money has been paid to the solicitor.

OP is talking about selling rather than buying. If it came to exchange day and there was not enough money to pay the estate agent, I'm not sure whether the solicitor could stop the sale if you instructed them to proceed and said you were making a private arrangement with the estate agent. If this is a possiblilty, make sure you don't choose a solicitor linked to the estate agent!

I have known people re-negotiate with the estate agent immediately prior to exchange. EA then has a simple choice accept reduced commission or no sale=no fee. Have to be hard-nosed to do that though.

Lynzpower is the expert in selling your house as cheaply as possible. I think she used housenetwork thats lists you on rightmove for about £100.

Mike_St_Helens

silvercar wrote: »

OP is talking about selling rather than buying. If it came to exchange day and there was not enough money to pay the estate agent, I'm not sure whether the solicitor could stop the sale if you instructed them to proceed and said you were making a private arrangement with the estate agent. If this is a possiblilty, make sure you don't choose a solicitor linked to the estate agent!

I have known people re-negotiate with the estate agent immediately prior to exchange. EA then has a simple choice accept reduced commission or no sale=no fee. Have to be hard-nosed to do that though.

Lynzpower is the expert in selling your house as cheaply as possible. I think she used housenetwork thats lists you on rightmove for about £100.

Thanks silver,

The amount of profit doesnt concern me really, I just want to make sure the solicitor and estate agent get paid really out of the equity... as I cant afford them myself...

If I get the asking price of £80k, the early repay the mort is 75.3k, then appx £1200 for estate agent, £400 for solicitor... then say it takes 3 months, ill then have 3 months arrears on the mortgage. so thats appx £1500 this is £78444. The OR would then get the appx 1500.

BUT if we dont get a sale, is it best to voluntary repo the house, take it off the market after 3 months and hand the keys back to the lender, thus not having to pay a solicitor or estate agent, any shortfall is then added to the bankruptcy once the bank has dealt with the repo'd house.

silvercar

So there is 3k of equity after mortgage and fees.

Mortgage payments are £500, so sell in upto 6 months @ £80k; 5 months @ £79.5k, 4 months @ £79k.......1 month @77.5k in order to clear the deck.

From your point of view, the better option is 6 months @ £80k because you will have saved £3000 of mortgage payments.

Mike_St_Helens

silvercar wrote: »

So there is 3k of equity after mortgage and fees.

Mortgage payments are £500, so sell in upto 6 months @ £80k; 5 months @ £79.5k, 4 months @ £79k.......1 month @77.5k in order to clear the deck.

From your point of view, the better option is 6 months @ £80k because you will have saved £3000 of mortgage payments.

For sure repo would have started by then though ?

Thats why after 3/4 months, voluntary repo may be best, just to ensure that we are not left with a solicitor or estate agent bill at the end ?

lynzpower

You rang
https://www.housenetwork.co.uk is my recomendation.

You will save a couple of K there ( ie will come to you- or poss the OR? I dont know) but they will get your place on the market and on RM for 500 quid ( not hundred, cor that would be good) they are an EA although you have to do the viewings yourself.

silvercar

For sure repo would have started by then though ?

I think, not totally sure, that you would have to be 2 months in arrears before they would start the ball rolling, then a token payment and a potential sale could delay another couple of months and then two court trips; I don't think you would actually be repossessed that quickly. Lenders now have a duty of care!

I know people for whom it has taken over a year.

Thats why after 3/4 months, voluntary repo may be best, just to ensure that we are not left with a solicitor or estate agent bill at the end ?

Or why not say you will sell in the next 3 months or wait to be repossessed - what do you gain by being voluntarily repo'd?

If you want repo advice visit singingpig.co.uk, plenty of quick-sale buyers on there will know how long a repo takes and how to delay.

If you are going on the market at £80k, what happens if you get an offer below £78k - presumably its no use to you.

Mike_St_Helens

silvercar wrote: »

I think, not totally sure, that you would have to be 2 months in arrears before they would start the ball rolling, then a token payment and a potential sale could delay another couple of months and then two court trips; I don't think you would actually be repossessed that quickly. Lenders now have a duty of care!

I know people for whom it has taken over a year.



Or why not say you will sell in the next 3 months or wait to be repossessed - what do you gain by being voluntarily repo'd?

If you want repo advice visit singingpig.co.uk, plenty of quick-sale buyers on there will know how long a repo takes and how to delay.

If you are going on the market at £80k, what happens if you get an offer below £78k - presumably its no use to you.

In my eyes, voluntary repo (If no sale after 3 months) means that I hand the keys back to them and I can move on really... move house and they deal with the sale from there really.

Yeah, at the mo we need at least 78k to clear everyone home and dry if there is no repo.

Thanks silver & Lynz.