FTB Questions...

ManicRower

Hi Guys,

Been reading the boards with interest sincestumbling across them around a month ago, using it to help guide me and my OH asFTB’s through our first purchase. Some context:

We are buying a 2-bed flat in SE London on999yr lease (950-odd left). It was advertised for £350,000 and we were thefirst people to see it. We went back 5 days later for a second viewing. Weloved the flat and knew we would face stiff competition for a 2-bed in this particulararea and in this price range, so put in an offer of £335k which was acceptedthe following day. In hindsight probably slightly too high for an openingoffer, but our tactic was to try and get an offer accepted at a decent pricebefore any further viewings could take place and potentially push the price upand out of reach.

Things have progressed smoothly thus far,in no small part because of the advice given on this forum which I have beenable to read for help. Our mortgage offer is in place (5-yr fix w/Coventry, 90%LTV) and our survey arrived this morning. I now have a couple of questionswhich I was hoping someone might be able to answer?

· How long should it realisticallytake to get to exchange now that our mortgage offer is in place? When our offerwas accepted, the EA pencilled in 15/11/13 for exchange and 22/11/13 forcompletion. Is this still realistic or is it likely to take a muchshorter/longer period of time? Our offer was accepted on 15/09/13 and ourmortgage came through on 10/10/13

· The survey has come back largely ok,the only areas for concern are listed as electrics/gas/central heating becausethe surveyor didn’t test them. Am I right in thinking the next step is to askthe vendor for proof of any tests they have previously had done, and in lieu ofthis I should have my own electric/gas/central heating tests carried out priorto exchange? If yes, who is responsible for paying for these tests? I’m assumingme, but wondered if it was common practice to negotiate this?

· If we are responsible, does anyonehave any ideas how much standard electric/boiler/central heating tests are?

Basically I’m keen to avoid forking outwhere I don’t have to, but similarly if it’s only likely to be £100 or so forthe tests, then I don’t want to quibble over such a small amount and riskantagonising the vendor, especially against a backdrop of increased competitionfrom HTB and ever-increasing London price-rises.

Any advice is much appreciated, once againthanks for the help thus far J

AdrianC

ManicRower wrote: »

In hindsight probably slightly too high for an openingoffer, but our tactic was to try and get an offer accepted at a decent pricebefore any further viewings could take place and potentially push the price upand out of reach.

Forget about "tactics". You've seen a place you like, you've made an offer you're happy to pay, and they're happy to accept. End of.

Things have progressed smoothly thus far

How long should it realisticallytake to get to exchange now that our mortgage offer is in place? When our offerwas accepted, the EA pencilled in 15/11/13 for exchange and 22/11/13 forcompletion. Is this still realistic or is it likely to take a muchshorter/longer period of time? Our offer was accepted on 15/09/13 and ourmortgage came through on 10/10/13

That delay of nearly a month might affect exchange, it might not - assuming the solicitors were getting on with it all in the meantime, and nobody was waiting for the mortgage to be approved, then there shouldn't be an issue.

The survey has come back largely ok,the only areas for concern are listed as electrics/gas/central heating becausethe surveyor didn’t test them.

That's perfectly normal backside-covering.

Am I right in thinking the next step is to askthe vendor for proof of any tests they have previously had done, and in lieu ofthis I should have my own electric/gas/central heating tests carried out priorto exchange?

You could do that, yes. Is there any reason for you to be worried about the heating or sparks? Because I rather suspect that, unless there is a good reason, vanishingly few people actually bother to get further tests done... Surveyors always give lots of "But we couldn't/didn't/haven't, so don't sue is" get-outs. If every buyer chased every single one up, all that'd be achieved is to just about double the purchase price, pee the vendors off and string everything out for months...

If yes, who is responsible for paying for these tests?

You.

Conrad

Quibbling over £100 when buying a property worth £350k is a bit petty minded. Never known any client get such things tested anyway. What will you do if they don't work, try and get a discount in this market? If I were the seller and you tried to do this I'd have it back on the market pronto. Remember you too will be a seller one day, you have to see things from both sides.

ManicRower

Thanks for your responses.

All excellent points and exactly what I thought, it is a bit petty and not really worth quibbling over. I suspect we will probably get the tests done to be thorough but will just pay for them ourselves.

Muchos Gracias!

AdrianC

ManicRower wrote: »

I suspect we will probably get the tests done to be thorough but will just pay for them ourselves.

What tests you, as the buyer, choose to get done are ALWAYS your responsibility to pay for. The question is what you do with the results of the tests. If they come back with a recommendation to spend money, will you then try to get the vendor to reduce the price?

FTB129

We had our offer accepted mid Aug, and now waiting for an exchange date as the seller has ongoing queries with her onward purchase even though was told by EA in the beginning that she was ready to move 2 months ago! We're hoping that things will get moving in the next month but going by some of the messages on the forum people have waited months and months - ''Sigh''

AdrianC

FTB129 wrote: »

...but going by some of the messages on the forum people have waited months and months - ''Sigh''

For contrast, when we sold our place earlier this year, it was three weeks from For Sale sign going up to accepted offer, and two and a half months from sign to completion. Even that had a few minor delays. It _can_ work well.

Bluebonnie

With 950 years left on a 999 year lease, it seems likely that this flat was built in 1964 or earlier.

Your solicitor should have sent enquiries to the vendors solicitor, asking about these installations, among other things. Have you seen the enquiries? Have they come back from the other side yet?

If it were me, I would be somewhat reassured if there was a statement to the effect that the place HAD been rewired since 1964, and that the heating system (boiler and rads?) HAD been renewed since 1964. I would like to know when these works had taken place.

If vendors cannot give you that reassurance, you could be looking at potential spend of several £K to bring these basics up to scratch.

Are you willing to take this chance, or do you want a professional opinion?

When you viewed, did you inspect the fuse board/distribution unit? Did you notice the make and model of the boiler, and whether the radiators had TRVs? If you didn't see these, you might want to know what you are letting yourselves in for.

ManicRower

Cheers for the replies.

With regards to what we would do if we get the electric/gas tested and it requires money being spent, I guess it would depend on the severity and urgency. Given the competition we won't be able to go back to the vendor and negotiate further.

BlueBonnie, no we have not looked at fuseboard or the radiators for TRV's but they are now on my list of things to check out next time I visit the property. We do have the boiler make and model (Potterton Performa 24 Eco HE), so we might be able to get a rough idea of dates from the age of that?

AdrianC

ManicRower wrote: »

Given the competition we won't be able to go back to the vendor and negotiate further.

There y'go, then. Do it later, at your leisure, once you've moved in.

Slightly_Squiffy

My partner and I decided to have a full electrical check done on a flat we were buying. It was free and it flagged up the flat would need a full electrical rewire costing us £7k. Due to several other reasons (£3k for damp removal too) we pulled out as we were not going to get any money off. I would personally get tradesmen to go in to give quotes...it could give you an idea of how much £ you need to be prepared to save for basic and necessary works when you move in.

And £350k for a 2 bed in SE London?! I hope that's around Dulwich or Greenwich somewhere! :cool: