Some questions from a nervous first-time buyer...

danieljwood

Hi,

I'm 32 and after renting for years I've decided it's about time I got on the property ladder. I'm paying £625 ppm on a 1 bed flat and most mortgages around around £420 on the discounted 2 year rate and £500+ on SVR, so buying makes sense in that respect.

I've around £11500 in savings at the moment and have seen a property I'd be keen to make an offer on - it's currently on at £98K but hoping an offer of around £95K might secure it.

I'm fortunate enough to have no debts whatsoever and earn around £48K gross.

Anyhow, just few questions general questions I could do with some advise on:

1. I found what looks to be a very, very small patch of damp in the bedroom. I've asked the agents to check with the landlord if they'd be OK if I got a builder around to check. I thought this to be more sensible rather than paying £400 for a buyer's survey which I'm still planning on, only for a load of other problems to be uncovered. What are your thoughts? And whilst the builder's in there, what else would you have them check? Given that I'm looking to buy in the north west, what would you think sensible for a cost? And is a 'builder' the right person to approach?

2. The property is an end terrace converted into a flat. It's leasehold with 999 years remaining so nothing to worry about there, with round rent of £20 a year! I asked about the service charge but apparently the landlord is still considering this. The property was previously tenanted. I'm struggling to understand how they do not know what the service charge is. What are your thoughts?

3. I've enough for a 10% deposit, however it would only leave me with around a £2K buffer for other associated costs. Assuming the associated mortgage fees get added to the mortgage itself, I'm budgeting £750 for solicitor fees (neither party are in a chain, so should be simple enough), £500 for home buyer's survey and valuation fees of £300 and land registry fee of £200.

Am I missing anything and are these figures realistic?

4. Ideally I'd like the whole process to take around 3-4 months - I know this seems ironic since I'm a FTB with no chain - but this gives me the opportunity to save another £1.5K+. What's the best way of relaying this to the seller/estate agents? I'd rather be honest from the start rather than appear to be stalling for time and it appear that I'm dicking them about.

5. At what stage do I have to pay my deposit? On completion, which might be months from now? Hoping this is the case!

Apologies for all the questions and if the questions are bit naive! I'm not hugely clued up or up on the lingo. If I'm honest I'm crapping it a little bit. I've always enjoyed the peace of mind of not having any debt or commitments!

Thanks in advance.

bigfreddiel

Get s survey, then a builder if you think it's necessary.

Estimated fees are okay but be prepared for double.

Deposit on exchange as far as I recall. Usually ten percent. But you could agree with five percent. Doesn't really matter because you have to pay it all at some time or other!


Cheers fj

alchemist.1

I wouldn't obsess about not having a chain. The process of buying the place could take three months anyway. With the time waiting for a mortgage offer and searches to be returned, surveys to be carried out time will fly by.

You will require proof of deposit for majority of lenders/Solicitors before starting the process. Even some Estate Agents will insist on it before taking any offer you make seriously.

danieljwood

Thanks for the replies.

Ref. the survey, just concerned that the home buyer's survey is likely to be full of caveats, i.e. 'may' contain dampness etc. So I'm guessing the only other option is a full survey and that's likely to be the thick end of £1K.

Will I be able to stipulate specifically that I would not be willing to exchange contracts for X months?

ThePants999

I had a full survey on a 4 bed detached house for £460. Shop around!

kinger101

danieljwood wrote: »

Will I be able to stipulate specifically that I would not be willing to exchange contracts for X months?

It's likely to take around 3 months even without a chain (despite what a solicitor may tell you). However, if your start making stipulations like that to a vendor, it's something of a red flag. Makes one thing you don't have funds ready. And the longer someone wants to take, the more likely they are to get cold feet.

alchemist.1

Theres literally no point in anyone accepting your offer with stipulations like that.

Person_one

When you say a very very very small patch of damp, how small are we talking and whereabouts on the wall is it? Any signs or smells of mould? I'd never bother with a 'homebuyer's report' they're a waste of time and money. Either trust your judgement and just get the basic valuation or go the whole hog for a little bit extra and get a proper full survey.

You haven't got much budgeted for 'extras' at all there, it wouldn't take much to tip you into overdraft and credit card territory. You're earning a very high wage for somebody living in a part of the NW where a flat can be got for 95K. If I were you I'd save for a bit longer until you've got about 5K saved for costs (and any urgent repairs/replacements you find when you move in, furniture, appliances etc.) and start looking again then. It won't take you long, and if this flat's gone there will be others.

keith969

1. Builders aren't surveyors. Have a survey done if you're concerned. Damp can often be just condensation from poor ventilation.
2. Your solicitor will find out, ask him.
3. Costs can and do go up, get a few quotes for solicitors fees (and remember that cheapest is often not best)
4. As others have said you run the risk of putting the seller off. Is the seller in a chain?
5. Deposit is normally paid on exchange of contracts.

Good luck!

danieljwood

Thanks for the replies everyone.

I'll give the builder a miss. Sounds like it's a full survey or nothing. The home buyer's reports don't seem to be recommended.

I'm obligated for another 4 months rent so I wouldn't be looking to complete before then.

The 'patch' was a couple of square inches, if that, where the top corner of the bedroom wall appeared to be slightly differently coloured. I'm likely to be over cautious. No noticeable smell of dampness and it didn't look to have had a quick lick of paint to hide any problems. The flat I'd viewed an hour before was horrendous - the smell hit as soon as you walked in the door, plus wallpaper peeling, clearly visible damp etc, and the agents seemed very surprised. Irritating since they're also the people who are currently letting it too.

The seller isn't in a chain. It's a vacant property they're looking to sell. I don't want to put the seller off. But why would I be honest, if the time comes, and say that I wouldn't want to complete inside of 4 months from now due to my rent obligation? Is that unreasonable?

I've about £12K at the moment in savings so I'd have the best part of £3K for associated expenses. I was hoping it wouldn't be more than this to deal with a 'cheap' 1 bed flat!

Ref. my income, yes I'm very, very fortunate. That said, I've moved around the country 6 times in as many years to keep allowing me to progress and be where I am now. Who knows, maybe one day I'll end up earning half of what I do now but even then, £500 a month on a mortgage isn't unmanageable. There are still nice pockets of Cheshire whereby property can be had for well under the national average. Nantwich is one of those areas...

kinger101

danieljwood wrote: »

=
The seller isn't in a chain. It's a vacant property they're looking to sell. I don't want to put the seller off. But why would I be honest, if the time comes, and say that I wouldn't want to complete inside of 4 months from now due to my rent obligation? Is that unreasonable?

If the seller thinks they can get a similar offer from someone who can complete sooner, they might well decline yours. When moving from rented to purchased, you should really be budgeting for some overlap anyway. It's often impractical to time completion dates around tenancy end dates.

You could indicate to the vendor you'd like to complete in 4 months but could do so sooner if that's a problem. You could ask your solicitor to drag their feet a bit too (though mine did that without prompting). I'd be surprised if they did it inside 3 months anyway.

If you did need to move sooner, you could offer to surrender the tenancy earlier for a reduction in rent. If the landlord doesn't bite, don't allow them access to redecorate etc. Change the locks and hand the keys back on the last day of the tenancy.