insurance for completion and mortgage monies question

kingkano

2 questions in 1 My solicitors have said I need to arrange buildings insurance for exchange, fair enough. They then go on to say before completion I need to arrange for the insurer to send them a letter confirming 5 key points about the insurance!!! Are they for real??? Even if I could get an insurer to do that we're probably talking months for it to happen..... isnt a copy of the policy and such good enough??

My other question was related to them saying they need a minimum 5 days between exchange and completion, but prefer 10. Apparently lenders need a minimum or 5 or 7 days to arrange a 'mortgage cheque'?? How do people exchange and complete on the same day then? Surely they just electronically send the money not really issue a cheque and wait for it to clear etc??? BARMY!?

Sorry if I sound a little mad I just cant believe these things :rotfl:

nik_k

Same for us - lender required a Certifcate of Comprehensive Buildings Insurance prior to releasing any monies. Items specifically addressed on form were; Policy Number, Sum Insured, Risks Covered, whether policy is Index Linked, and Renewal Date.

As mentionned on the Race to be in by Summer thread, I too can't get my head around the circumstances in which simultaneous exchange/completion is possible...even though I've done it in the past!!! lol

Madjock

The insurance issue is not really an issue at all. All insurance providers are quite used to this request and will usually fax the information directly to your solicitor.

As for the gap between exchange and completion, normally the solicitor will request the funds from the lender on the day of exchange. Yes, it is usually a bank transfer, but the lender will normally require a minimum of 5 working days to process the request and transmit the funds. When a simultaneous exchange and completion takes place, the solicitor requests the funds usually a week before the agreed date.

nik_k

So in a way, a simultaneous exchange/completion is more risky coz of the fact the solicitor is requesting monies prior to exchange, whereas normally they request immediately once exchange has taken place...right?

kingkano

Madjock wrote: »

The insurance issue is not really an issue at all. All insurance providers are quite used to this request and will usually fax the information directly to your solicitor.

As for the gap between exchange and completion, normally the solicitor will request the funds from the lender on the day of exchange. Yes, it is usually a bank transfer, but the lender will normally require a minimum of 5 working days to process the request and transmit the funds. When a simultaneous exchange and completion takes place, the solicitor requests the funds usually a week before the agreed date.

Thanks very useful. I shall try as you say. I might arrange the buildings cover now (even before exchange) to make sure I can get the info quick. I can always cancel should we not exchange etc.

oh and the explanation I guess makes sense. cheers for that.