Using Developer's Lenders/Financial Advisors

eddddy

dannyiddo wrote: »

They say the reason for the discount is that is makes things easier all round, and that the solicitors have less work to do because their are 50 flats on the site, and so the process is easier for them to replicate on a larger scale.

This highlights the real issue.

The developer is pushing 50 chunks of business their way (and maybe another 50 when the developer builds their next development etc).

You represent just 1 chunk of business (and you're unlikely to need their services again).


Realistically, if there is a bit of a disagreement between you and the developer - would the solicitor be 100% on your side? Or would they worry about getting in the developer's bad books and losing future business?

dannyiddo

I understand this, but the estate agent pointed out that on the reservation forms there are two solicitors. One working for the developer, and one for the buyers....

But I guess this is irrelevant, as it is still a solicitor they have chosen?

elverson

In any sale the the buyer and seller have separate solicitors (whether it's a new build or an older property) - the issue here is that the 'recommended' solicitor aren't likely to kick up a fuss on your behalf if it's likely to affect their future work with the developer.

Get an independent solicitor in.

eddddy

dannyiddo wrote: »

I understand this, but the estate agent pointed out that on the reservation forms there are two solicitors. One working for the developer, and one for the buyers....

But I guess this is irrelevant, as it is still a solicitor they have chosen?

Yes - the developer is probably telling 50 different buyers to use that same solicitor for buying. (And may tell another 50 plus buyers to use them in the future.) So the solicitor makes a lot of money as a result of that developer.

So the solicitor might not want to annoy the developer.

And the solicitor might be less concerned about annoying you.

Hedgehog99

You have to prove you have the cash or agreed mortgage to buy the flat, so a certain amount of financial disclosure is necessary to prove you are a good buyer.

Beyond that, don't discuss anything else with their FA. Get your own independent FA and your own solicitor.

You might think you'd have "saved" £1000 by using the Estate Agents' recommendations, but I bet you'd end up paying it back in fees one way & another and be no better off - in fact, worse off, because you'd have discussed too much personal info with them & would get a more thorough solicitor elsewhere.

And, when the time comes, shop around for home & contents insurance - you'll have to pay a fee to cancel your mortgage provider's insurance (that they automatically arrange), but it will save you money in the long term.

I've recently paid for my own private EPC whereas I would have paid £20 - £40 more if I'd agreed to let the estate agent arrange it for me.

AnotherJoe

I hope that deposit is refundable.
You've put down £1,000 and don't know if you can get a mortgage, what the lease says, what the annual costs will be, diddly squat it seems. If you don't like any of those, can you get your money back?

G_M

How many more people have to say this?

USE YOUR OWN SOLICITOR.

The FA is less important. If their chap can get you a cheaper/better mortgage, fine. So go and see what their chap offers, and see your own chosen advisr too. Use the one who offers you the best deal.

dannyiddo

Point taken! Thank you all