Offer conditionally accepted, whats next?

ComputeAngel

Hi,

I got an offer accepted for a house today. I have couple of questions if anybody can help

The EA asked me to provide two form of IDs which I did emailed him but I am not sure why he has asked for ids?

I am a FTB and the house is also offered chain free which is good thing but just want to confirm how long should I expect the whole process to take? I am in Luton, Bedfordshire.

Can I get as "gift" some deposit say 5K from my friend? I will return him after 2/3 months but that is between him and myself. Is this allowed?

The EA financial advisers is going to call me tomorrow to discuss my feasibility but I don't want to use the EA broker for my mortgage application. Do i still have to discuss my financials with him? Can I not simply refuse to discuss any of my financials with him?

There are tenants living in the property, the EA told me they will be leaving in 10 days. I am planning to ask the EA that I won't start the application process i.e. spend my money until I see the house vacant. Is this right approach?

What should I expect next? Thinks to kingstreet I know the process is

Process;-

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.

Can I ask what should i be paying special attention to during the "Sales memorandum issued by agent" phase. Is there anything that I have to consider?

Many thanks for your help guys.

Thanks

kingstreet

No. The sales memo just confirms the property address, agreed price, purchaser, vendor and both solicitors.

ComputeAngel

Thanks Kingstreet. The EA agreed that current owner is going to replace the windows in the agreed price. Does it need to be written in the sales memo?

Can you also look at my other questions please

Many thanks

ACG

ComputeAngel wrote: »

I am a FTB and the house is also offered chain free which is good thing but just want to confirm how long should I expect the whole process to take? I am in Luton, Bedfordshire.
I usually say 6-8 weeks, but it can be more.


Can I get as "gift" some deposit say 5K from my friend? I will return him after 2/3 months but that is between him and myself. Is this allowed?
Its very unlikely a lender will accept this - although it will depend on the finer details.

The EA financial advisers is going to call me tomorrow to discuss my feasibility but I don't want to use the EA broker for my mortgage application. Do i still have to discuss my financials with him? Can I not simply refuse to discuss any of my financials with him?
You can, but an estate agent can insist on confirmation you can afford it. This could be anything from seeing proof of deposit and/or mortgage or going through their broker. Personally I would get another broker in place OR your own DIP should you wish to not use any broker to avoid them having to go into your financials too much.

There are tenants living in the property, the EA told me they will be leaving in 10 days. I am planning to ask the EA that I won't start the application process i.e. spend my money until I see the house vacant. Is this right approach?
You dont have to spend any money in the first 10 days. You can put an application in and wait until it gets to valuation stage but ask the lender to not instruct the valuation until you give them the green light.


What should I expect next? Thinks to kingstreet I know the process is




Can I ask what should i be paying special attention to during the "Sales memorandum issued by agent" phase. Is there anything that I have to consider?

Many thanks for your help guys.

Thanks

Answers in red.

Thrugelmir

I wouldn't commit any money until the property is vacant.

While it maybe chain fee doesn't mean hassle free!

You'll need to evidence the source of your deposit. So borrowed money isn't a great place to start.

ComputeAngel

Thrugelmir wrote: »

You'll need to evidence the source of your deposit. So borrowed money isn't a great place to start.

Can my friend not write a letter stating he is gifting me the money and has no interest in the property and is not expecting the money back from me for lets say next 30 years. it is not the whole deposit, I do have a 20% of the asking price, but i will get better rate if I go for 25%.

kingstreet

ComputeAngel wrote: »

The EA asked me to provide two form of IDs which I did emailed him but I am not sure why he has asked for ids?

Corporate EAs are applying the money laundering requirements to themselves.

I am a FTB and the house is also offered chain free which is good thing but just want to confirm how long should I expect the whole process to take?

String measuring. 4 weeks plus...

Can I get as "gift" some deposit say 5K from my friend? I will return him after 2/3 months but that is between him and myself. Is this allowed?

No. That's a loan. Lenders will want to know the terms of repayment. Misrepresenting a loan as a gift is not a good way to kick off any relationship.

The EA financial advisers is going to call me tomorrow to discuss my feasibility but I don't want to use the EA broker for my mortgage application. Do i still have to discuss my financials with him? Can I not simply refuse to discuss any of my financials with him?

Under the 1979 EA Act, the EA is required to satisfy itself you have the wherewithal to proceed to unconditional exchange of contracts. The Act is silent on how that is achieved.

There are tenants living in the property, the EA told me they will be leaving in 10 days. I am planning to ask the EA that I won't start the application process i.e. spend my money until I see the house vacant. Is this right approach?

Yes.

ComputeAngel

@ACH.

Its very unlikely a lender will accept this - although it will depend on the finer details.

What kind of finer details?

Thrugelmir

ComputeAngel wrote: »

Can my friend not write a letter stating he is gifting me the money and has no interest in the property and is not expecting the money back from me for lets say next 30 years. it is not the whole deposit, I do have a 20% of the asking price, but i will get better rate if I go for 25%.

From a lenders perspective too many complications. Plus the fact that they will consider such a transaction to be a gift as unlikely.

ACG

ComputeAngel - the lender of choice and what their requirements are.

Personally I would just say stick to your 20% and forget the other 5%. Its a loan, declaring it will limit your options down massively (I only know of 1 lender), that is likely to hinder the rates you get more than having a 20% deposit. To declare it as a gift would be a lie and mortgage fraud - if you get caught you can say good bye to getting a mortgage at normal rates for a long long time.

ComputeAngel

ACG wrote: »

ComputeAngel - the lender of choice and what their requirements are.

Personally I would just say stick to your 20% and forget the other 5%. Its a loan, declaring it will limit your options down massively (I only know of 1 lender), that is likely to hinder the rates you get more than having a 20% deposit. To declare it as a gift would be a lie and mortgage fraud - if you get caught you can say good bye to getting a mortgage at normal rates for a long long time.

The lender will most probably be Halifax.