Offer Accepted, when do I need the deposit and other costs?

DominicJ_2

Myself and my partner are buying my partners parents house for £125,000.
She spoke to her bank in February and they seemed confident they would be able to lend her 90% of the money, but no formal offer was made (not that it means much)
We are hoping to move in November.

So, we need £12,500 for the deposit, and I've budgeted £1000 in costs (minimal search, survey and legal) and £1000 as a contingency.
We will have all of that by the 25th of November

Will the lender want to see the full deposit before they issue a MIP? Since MIPS expire after three months, is there any point looking for one before August?
Would a single solicitors be able to deal with her parents selling and us buying? There is a vague hope on my part that would be quicker, they can hardly claim to be waiting for the other solicitor if its them.

Yorkie1

Your budget for costs is likely to be too low.

The solicitors are likely to charge £700-800 alone, including searches. As you need a mortgage, the lender is likely to require certain searches to be carried out so you have no say in respect of those.

The survey fee will be a few £hundred. You may well have an application fee for the mortgage - can be anything from £0 - £1500.

The same solicitor is not allowed to act for both the seller and the buyer. Different solicitors in the same firm are not legally prevented from doing so, but it is not advised because of the potential for conflict of interest.

There really isn't a lot of point in looking for an AIP before you're in a position to buy. It's not as if you're going to be searching for a house. Wait until you've got all your financial ducks in a row, and then start the AIP / mortgage application process.

The only reason you might need to get an AIP now is if you are uncertain that you'll be able to fund the purchase and need that confirmation.

monty-doggy

I agree with the above, your survey will be between 300-500 and legals about 700.

They don't need to see deposit for application. I had my full offer without seeing deposit funds, but the conveyances wanted to see proof before they would start the searches.

DominicJ_2

When I bought my last house, they rolled the mortgage fee in to the mortgage, I take it they dont do that anymore?

I had it in my head that my legal fees were £500 or thereabouts, plus £250 searches and £250 for the mortgage survey, but it was a long time ago I last bought a house.

Just got the nod that I'm getting my payrise, so my contingency fund should be a little over 2k, now as well.

Yorkshire Banks 3yr fix has no arrangement fees or valuation fees, which would seem to handle a lot of concerns no? Not the best deal though I am sure.

Should we start approaching the bank in August to get the ball rolling on searches and everything?

monty-doggy

Yes you can add the product fee into the mortgage, but a valuation is crap, its literally paying all that money for someone to look at the house and say 'yes it's standing'

It's worth the extra to get a homebuyers report, as you never know what it might show. This isn't supposed to scare you away from buying, it's so you buy it fully informed and can make any urgent repairs.

August would sound about right

DominicJ_2

I'll look into getting a proper survey done then, would that still be the mortgage company surveyor, he would just pay more attention?

Yorkie1

DominicJ wrote: »

I'll look into getting a proper survey done then, would that still be the mortgage company surveyor, he would just pay more attention?

The pure valuation is done for the lender's benefit and you often won't get a copy of it as you aren't the client.

A homebuyer or full survey can be done by the same surveyor as does the lender's valuation, or you can instruct a completely independent surveyor separately.

The RICS website has an outline of what is the difference between all of the above.

monty-doggy

I had mine done via the lender, as it was homebuyers I could ring him up to discuss it too.

I thought it was worth it!