House buying process in UK - why exchange takes so long

Thrugelmir

marmage wrote: »

I'm not disputing the costs or the system - am only trying to understand what is behind it and can only do that by asking others experience. Thanks for the thoughts everyone.

£500 is unfortunately a lot of money for some of us, it doesn't come by so easily. I'm only wishing there was more of a certainty that I wouldn't lose this money into the black hole.

Ask your conveyancer not to commence any work until you have a mortgage offer. Then the monies that are being held for searches will be reimbursed.

Little you can do about the surveyors fees. Houses hide a multitude of problems. A few hundred pounds now is better than thousands later on.

Malmo

csgohan4 wrote: »

I think anecdotally, it's the conveyancer that takes the longest. Legals and queries bouncing to and fro. Ping pong emails and nothing gets done.

That is certainly our experience. It's the enquiries and responses that are taking some time, with claims of email contact never being received by the vendor's legal representative being the reason that I've been given whenever I push the vendor's estate agent. Whether that's true or not, I can't verify, but the process isn't working as well as it needs to.

davidmcn

dgtazzman wrote: »

I know in The Netherlands, once a price is agreed a contract of sale is formed. It does usually contain clauses to disband it if the buyer fails to secure a mortgage or a survey picks up issues, but outside of that it becomes legally binding after 3 days of it being signed.

The norm in Scotland is for an offer to be subject to the purchaser obtaining a mortgage offer, but very few sellers would be willing to conclude a contract on that basis, as they have no certainty that the purchaser is going to get a mortgage offer satisfactory to them. So (despite the common misconception that "accepting" an offer makes it instantly binding), there is usually a delay while everybody waits for the lender to issue a mortgage offer, and only then will there be a binding contract.

But generally the solicitors get on with the rest of the work in the meantime, it's no wonder English/Welsh conveyancing is so slow if nobody lifts a finger until the mortgage offer appears.

kleapatra wrote: »

West Dorset local searches are currently taking a minimum of 12 weeks!:mad::mad:

Why do people in England & Wales put up with this? Is it because it gives the conveyancers a good excuse for being slow? In Scotland we gave up on local authorities years ago, and everybody gets searches from private firms - typically within 24 hours.

benjus

davidmcn wrote: »

Why do people in England & Wales put up with this? Is it because it gives the conveyancers a good excuse for being slow? In Scotland we gave up on local authorities years ago, and everybody gets searches from private firms - typically within 24 hours.

In England and Wales that option is available, as long as the lender will accept it. I would certainly do it if possible if a local authority search was going to take 12 weeks.

Thrugelmir

Malmo wrote: »

That is certainly our experience. It's the enquiries and responses that are taking some time, with claims of email contact never being received by the vendor's legal representative being the reason that I've been given whenever I push the vendor's estate agent. Whether that's true or not, I can't verify, but the process isn't working as well as it needs to.

Both buyers and sellers have their own agendas. Often nothing to do with those in the middle.

ruggedtoast

marmage wrote: »

Hi everyone

I'm struggling to understand the logic with the house buying system in the UK. I'm baffled by why it may take at least 4 weeks? (please correct if timing is wrong) between offer to exchange of contracts. There is no guarantee during that period of a definite deal, yet you're expected to pay for non-refundable fees such as for the survey and solicitor disbursements. Also I assume it would be unethical to make offers on additional properties at the same time. So you do more or less end up putting both financial and mental energy into this one property. Yet the whole thing may not go through!

Has anybody got experience of purchasing property in other countries? In Australia for example there appears to be more certainty in the system - I think contract exchange is early on and then there's a 'cooling off period' afterwards where surveys, checks etc are done.

I'm sure there is a good reason for our system - pros more than cons hopefully?

I don't think its a system based on logic.

Would be interested to know what systems other countries have.

I believe in the US the buyers pays a deposit of around $500 - $1000 and at that point the seller can't pull out. If the buyer pulls out they lose the deposit unless its due to something untoward coming to light that they didn't know about.

What seems to help over there is that estate agents are actually professionals who handle conveyancing so it isn't in their interests to lie about properties they handle if they can't complete on them.

Whereas in England the agent is a salesperson chasing commission whom you cannot trust one inch.

Brown_Eyed_Girl

I can sympathise and certainly in the first couple of weeks after the offer was accepted I was keen to get to exchange as soon as I could, so that I can't be gazumped etc.

But in reality, it's really good to have that time to go over everything. especially as a first time buyer, I don't want to risk every penny I have on a potential nightmare. This is especially so in London where in some cases you have to go with your gut there and then on first viewing and make an offer, before then using this time to do a bit of digging.

£500 is a lot to lose but then think if it saves you being saddled with all sorts of issues that cost you 10x more, or worse leave you with something unsellable.

Strangely compared to others it seems my conveyancers have been brilliant. They're now waiting for others - both the surveyor and the other side to get back on the enquiries. Instructed them immediately as the sellers wanted to exchange In 4week, & despite the other side taking over a week to get the contract over, mine have pretty much done most of what they need to in 3weeks

Thrugelmir

Brown_Eyed_Girl wrote: »

Strangely compared to others it seems my conveyancers have been brilliant.

In this 24/7 world we now live in there are many impatient people. I just wish that they were as good at their own jobs.

Brown_Eyed_Girl

I think the key is good communication. I'm more than happy to be patient when I know whats happening and things are all rational i.e they are waiting for X or the searches are in so we need to read them and will send you a report.

It's when things aren't happening and no one can explain why, that when I get a little nervous and want to know the answer... :think: