Completion day question...

CrippsCorner

Hi. Getting close now!

We're now at the point where our solicitors have asked for a completion date. We're actually buying the place we're currently renting... so have suggested 6th June as our completion date, as it's when our rent is normally due.

They have come back to us saying they want completion by the end of May.

We have replied saying yes we will do that, but only on a partial rebate of the rent money we've already paid. That was last week and I haven't heard anything back yet.

After asking a few questions to my broker we wondered if any had an opinion on a certain matter. I quote, "if you completed end of May, your first mortgage payment would be taken end of June and if you completed beginning of June it would be taken end of July".

Maybe I'm off the mark here but if we completed on 6th June... we now own it, therefore rent stops. We now (sort of) get a free month because we don't have to start our mortgage until the end of July. It means we get an extra pay packet in beforehand! Which, could be really handy right now. I guess it just pushes the end of the mortgage on a month, but seeing as though that's 30 years away lol I couldn't really care less.

If I am correct, I will make sure I push it to 6th June.

Thanks,

Olly

Newbiebuyer2016

I might be wrong, but we are in a similar predictament. You will owe two months mortgage end of July, buy one month end of June.

That's why we are trying to avoid completing towards the beginning of the month.

The partial refund would be great but think about it this way if you we're moving out on the 6th June you would pay your current landlord until then anyway. You wouldn't get a partial refund for vacating a property early unless someon moved in.

Your landlord will loose out on a weeks rent, however I would argue because of that they should let you complete on your rent day so it's far on both sides.

Zeebs90

We are also in a similar situation, from how I understand it, whilst the first payment wouldn't be until July, you would still owe interest from the date of completion, therefore the first payment would be quite a bit higher. It may vary from lender to lender though.

Thrugelmir

CrippsCorner wrote: »

We have replied saying yes we will do that, but only on a partial rebate of the rent money we've already paid. That was last week and I haven't heard anything back yet.

Ball is in the vendors court. Stick to your guns.

kingstreet

There is no way of estimating your first payment without knowing the lender concerned.

Broadly speaking, building societies and former building societies collect in advance about two weeks after completion and clearing banks collect in arrears.

The date in the month you complete will determine how much accrued interest will be added to the first payment.

CrippsCorner

Hi we're going with Nationwide.

So it seems it might not be just as clear cut as getting a virtual 'free month' lol... but even added interest alone should be better (in terms of that first monthly payment) than starting it earlier.

CrippsCorner

Just thought I'd update this to conclude that the sellers have agreed to a partial refund on the rent paid... so I have agreed to a 31st May completion. Issue resolved!

Now the scary bit, sending my deposit money over :lipsrseal

Anzhelka

CrippsCorner wrote: »

Now the scary bit, sending my deposit money over :lipsrseal

Why it's a "scary bit"?

AnotherJoe

Anzhelka wrote: »

Why it's a "scary bit"?

Warning warning, sense of humour failure.

CrippsCorner

Because I've had this lovely amount of money sitting in my account for years gradually building up from my hard work... and now it only has £90 in it lol. Actually it didn't quite work as it seems my account is limited to transfers of £10k per day, so I'm going to have to send it over gradually (actually, that weakens the blow lol)

Just to add one more thing. I originally asked for a rebate of £150 towards the rent paid, and they've come back and said they'll do £125! Jeez, I think these are literally the tightest people in the world :rotfl: I'm surprised they're not coming back to scrape the paint off the walls so they can melt it down and reuse it!