Offer accepted - what next?

jonny_power

So we have accepted a bid on our house (FTBers). And we have had an offer accepted on a house we wish to buy - what do we do next?

Our position is that we are tied into a mortgage and having spoken to them (Santander) they said once we pick a house, to get in touch and put a mortgage application in (to break our current product and take out a new one). To do this we have to pay our early repayment fee (£3.5k) but this will be refunded if we complete within 3 months.

Does this 3 months start from when we put our application in, or from when it is accepted/agreed?

I'm not keen on spending any money until the chain has completed (our vendor is about to start looking). How long is reasonable to expect them to have found somewhere. I don't want to put pressure on straight away but would hope they find somewhere within a month, for example.

Also the vendors EA want our solicitors details so our offer can be 'qualified' and the house taken off the market. While we've selected the solicitor based on some quotes and a recommendation, do we need to get them signed up and pay them some money when the chain isn't finished?

Sorry for lots of questions - it was much easier as a FTB!

jonny_power

jonny_power wrote: »

So we have accepted a bid on our house (FTBers). And we have had an offer accepted on a house we wish to buy - what do we do next?

Our position is that we are tied into a mortgage and having spoken to them (Santander) they said once we pick a house, to get in touch and put a mortgage application in (to break our current product and take out a new one). To do this we have to pay our early repayment fee (£3.5k) but this will be refunded if we complete within 3 months.

Does this 3 months start from when we put our application in, or from when it is accepted/agreed?

I'm not keen on spending any money until the chain has completed (our vendor is about to start looking). How long is reasonable to expect them to have found somewhere. I don't want to put pressure on straight away but would hope they find somewhere within a month, for example.

Also the vendors EA want our solicitors details so our offer can be 'qualified' and the house taken off the market. While we've selected the solicitor based on some quotes and a recommendation, do we need to get them signed up and pay them some money when the chain isn't finished?

Sorry for lots of questions - it was much easier as a FTB!

also - the house we're buying is 9 years old and looks in good condition. Is a condition report survey satisfactory?

kinger101

Ask the vendor's EA what they mean by "offer qualified". They're a bit cheeky asking you to instruct a solicitor if the vendor still has not found somewhere. You certainly don't want to be spending lots on fees until a chain has completed, so if you do need to appoint a solicitor now, tell them to do the bare minimum to satisfy the EA. No searches etc.

As for what type of survey you need, it depends on your attitude to risk. Most people would go for a homebuyers report on a 9 yo home, but if you saw something which concerned you during your visit, or if the home has been modified, you might want a full survey. Surveyors are mostly useless anyway (IMHO). You be much better off taking a builder round and having a good old poke around yourself.

eddddy

I suspect the 3 months is the time between paying off your current mortgage, and completing the new mortgage. In your case, that time will be zero days (if you sell/buy on the same day, as most people do).

That 3 month limit applies to people who have a gap between selling and buying - e.g. they decide to rent or live with family for a while.

---

You could instruct a solicitor, but tell them not to do any work until you inform them that the chain is complete. (They may ask you for a deposit - but you should get most/all of it back if they do no work.)

Then giving the EA/Vendor the name of your chosen solicitor might help reassure them that you are serious buyers.

jonny_power

thank you both, extremely useful (and reassuring).

jonny_power

So Santander are saying that we should start the mortgage application (they've actually contradicted themselves about the need to pay the early exit fee, so that's a bonus hopefully).

They said it can take up to 6 weeks to go through. I don't want to start the process until the chain completes and we're sure it's all going ahead but Santander seemed to insist we should start it. What should we do?

csgohan4

kinger101 wrote: »

Ask the vendor's EA what they mean by "offer qualified". They're a bit cheeky asking you to instruct a solicitor if the vendor still has not found somewhere. You certainly don't want to be spending lots on fees until a chain has completed, so if you do need to appoint a solicitor now, tell them to do the bare minimum to satisfy the EA. No searches etc.

As for what type of survey you need, it depends on your attitude to risk. Most people would go for a homebuyers report on a 9 yo home, but if you saw something which concerned you during your visit, or if the home has been modified, you might want a full survey. Surveyors are mostly useless anyway (IMHO). You be much better off taking a builder round and having a good old poke around yourself.

By all means do this, however if you need work doing, the vendor will undoubtedly ask for evidence, not figures from your local builder which could be a conflict of interest,are they your firend for e.g.. They may want an accredited RICS surveyor.

jonny_power

csgohan4 wrote: »

By all means do this, however if you need work doing, the vendor will undoubtedly ask for evidence, not figures from your local builder which could be a conflict of interest,are they your firend for e.g.. They may want an accredited RICS surveyor.

Ok thanks. Like I said it's a 9 year old house and doesn't have any visible issues so I think a condition report or home buyers report would be fine.

eddddy

jonny_power wrote: »

(they've actually contradicted themselves about the need to pay the early exit fee, so that's a bonus hopefully).

If Santander agents are giving you different answers each time you speak to them, it may be better to check the T&Cs you actually signed.

They also have an explanation on their website (but that isn't a 100% guarantee that your mortgage contract says the same thing):
http://www.santander.co.uk/uk/mortgages/existing-mortgage-customers-moving-home
See Option 1: Keep your current mortgage deal

jonny_power

eddddy wrote: »

If Santander agents are giving you different answers each time you speak to them, it may be better to check the T&Cs you actually signed.

They also have an explanation on their website (but that isn't a 100% guarantee that your mortgage contract says the same thing):
http://www.santander.co.uk/uk/mortgages/existing-mortgage-customers-moving-home
See Option 1: Keep your current mortgage deal

will do - thanks.

So now we have an offer accepted, but the chain is yet to complete, should we proceed with our mortgage application (which could take up to 6 weeks), or should we wait for the chain to form?

We won't be getting the solicitor to do search or the survey done until the chain forms, but does that mean anything for our mortgage application?

jonny_power

If anyone has a view on whether or not to begin the mortgage application before the chain has completed, that would be very helpful.