How long does it take to complete? What are the stages?

w00519772

I am trying to understand the steps involved in buying a house with a mortgage and how long each step takes. I understand this can vary depending on how many house transactions there are in the chain. Therefore please assume that I am buying a chain free house. I believe the process is as follows:

1) Research the mortgage market. Perhaps speak to a broker.
2) Choose a mortgage vendor and get an agreement in principle
3) Place an offer on the property and get the offer accepted
4) Arrange an appointment with the bank to go through the application
5) The application is approved
6) Arrange insurance e.g. building/contents. Also critical illness etc.
7) Arrange a survey (with the bank)?
8) Survey results come back. Assume all is well.
9) Exchange
10) Completion
11) Move in

Are there any steps I have missed? It would help to know how long each stage takes assuming the house is chain free and all parties involved are proactive i.e. seller, buyer, estate agents, solicitors etc.

Yorkie1

You've missed all the legal side of things - instruct solicitor, get searches done, receive property information forms from seller & consider them, sign contract, then exchange at some point.

Insurance (building) only comes into force on exchange. Contents can be left until completion.

Far too many variables to estimate each step of the chain.

On average it takes 12 weeks from offer to completion in a standard purchase but it can be far shorter or longer depending on different things.

kingstreet

Offer agreed
Solicitors instructed
Sales memorandum issued by agent
Purchaser applies for mortgage
Vendor's solicitor prepares and issues draft contract
Vendor completes seller's enquiry forms and returns to solicitor
Valuation/survey carried out
Purchaser pays solicitor for searches
Searches requested
Renegotiation of price due to survey findings - if required
Mortgage offer issued
Purchaser's solicitor receives seller's enquiry forms and raises any enquiries
Searches returned
Responses to enquiries
Purchaser visits solicitor to go through paperwork, hand over ID and deposit
Completion date agreed between all parties
Contracts exchanged
Completion takes place.

browneyedbazzi

Kingstreet's list looks fairly comprehensive to me - like yorkie said it's almost impossible to say how long each stage will take because it depends on all the circumstance. The average is 12 weeks, it took me 8 weeks (pushing everyone all the way and paying a bit over the odds for faster service from the solicitors) and I have a friend who managed 5 weeks (no idea how she managed it!). On the flip side, another friend has just completed on a property that he had an offer accepted for in July.

Alphamare

We have been advised that we don't instruct our solicitor until the survey/valuation of the bank has been done because if it comes back as unmortageable then you will lose out on both sets of fees. Thoughts?

FreddieFrugal

Our order has been so far:

Offer accepted
Mortgage application online
Proof of income and deposit sent to lender
Valuation
Solicitors forms and ID sent in post
Solicitor paid for searches
Estate Agent sends letters of sale
Mortgage offer issued

So obviously things can happen in slightly different order. I didnt get solicitor sorted until after mortgage application because the solicitor was assigned by the lender as part of the fixed deal we applied for included free valuation and standard legal fees covered. So they sorted all of that out and did it very quickly.

According to tracking details for solicitor theyre waiting for contract from seller's solicitor before then commencing the searches I've requested

w00519772

Alphamare wrote: »

We have been advised that we don't instruct our solicitor until the survey/valuation of the bank has been done because if it comes back as unmortageable then you will lose out on both sets of fees. Thoughts?

I think that makes sense. I guess there are two reasons the property could be unmortgageable:

1) There is a signicant defect?
2) Your offer is too high

If it is down to point two then you may want to renegociate the agreed price. If it is down to point one then the vendor should sort the defect otherwise they will need a cash buyer?

Yorkie1

Alphamare wrote: »

We have been advised that we don't instruct our solicitor until the survey/valuation of the bank has been done because if it comes back as unmortageable then you will lose out on both sets of fees. Thoughts?

You can instruct the solicitor (i.e. appoint them in practice) from the outset but tell them to do no chargeable work until the survey is back.

It makes you look more geared up for the purchase. Your lender will want to know who your solicitor is anyway.

G_M

Your local library will have books on property buying. Free.

It will step you through the process and be useful reference as issues arise at each stage.

kingstreet

Alphamare wrote: »

We have been advised that we don't instruct our solicitor until the survey/valuation of the bank has been done because if it comes back as unmortageable then you will lose out on both sets of fees. Thoughts?

That's why "pay solicitor for searches" comes after valuation and isn't just hidden in "instruct solicitor."

You need to instruct solicitors earlier so they know why the sales memo drops on their doormat with the details of your purchase on it.

browneyedbazzi

Alphamare wrote: »

We have been advised that we don't instruct our solicitor until the survey/valuation of the bank has been done because if it comes back as unmortageable then you will lose out on both sets of fees. Thoughts?

kingstreet wrote: »

That's why "pay solicitor for searches" comes after valuation and isn't just hidden in "instruct solicitor."

You need to instruct solicitors earlier so they know why the sales memo drops on their doormat with the details of your purchase on it.

I think it depends a bit on the individual circumstances.

We instructed our solicitor and got the searches under way as soon as our offer was accepted - we were quite confident that our offer was right (and even it was high our ltv ratio was 50/50 so we would be able to cover any shortfall, as it happens the house was valued over our offer) and needed the purchase to move quite quickly.

We did have one minor issue come back regarding the condition of the property (work that was done without building regs completion certificate) but this turned up from the solicitor's enquiries well before the survey was done - we were then able to tell the vendor to get it sorted or we would cancel the survey (save the fees!) and walk away. We would have lost the solicitor's fees up to that point, but that would have been less than the survey.