Instruct solicitor before mortgage offer?

chrissie83

Wondering if anyone has any advice please?

We have an offer on our house, the buyer has just paid for his mortgage valuation & We have had an offer accepted on the house we want. The house we are buying isn’t ready yet, the bathroom is going in now & the kitchen next week. The EA is going to instruct the solicitor to start searches etc today but I’m worried as we haven’t started the full mortgage application process yet. Our MA sorted an AIP with NatWest & said it’s done with a ‘hard search’ & is a good indication that it will be ok but I’m a worrier. I don’t want to do searches etc & lose money.
Any advice on any of it would be appreciated

Surrey_EA

There are always differences of opinion on this question.

I would say treat the mortgage application and conveyancing as two separate elements and run them both at the same time.

others would say do not begin the conveyancing until you have the mortgage approved as if there's a problem you may find yourself in a position where you've wasted money on legal fees.

Some sellers will find the second approach troubling, and may infer you are worried about being approved for a mortgage.

It will depend on how confident you are of being approved for a mortgage, and how quickly the sellers is expecting you to get on with things.

chrissie83 wrote: »

The EA is going to instruct the solicitor to start searches etc today

The EA should not be instructing the solicitor to do anything, it is for you to instruct the solicitor.

chrissie83

Thank you!
I am worried about the mortgage application ( I’m a worrier in general) & it’s playing on my mind. I just want it to be done but the house isn’t ready to be valued ( as it doesn’t have a kitchen etc?)

I didn’t realise I’m meant to instruct the solicitor, he just said he is doing it ( see how clueless I am) can I use the same one as I’m using to sell with?

eddddy

Is the house you are buying a new build? If so, the mortgage valuer would often do a valuation based on the plans and specification - even though the house isn't finished.

Or is it an existing house that's being renovated? If so, maybe you want to see the quality of the kitchen and bathroom fitting etc, before proceeding too far.

chrissie83

No, the house is being renovated. I’ve seen the bathroom & I’ve chosen the kitchen myself so I’m not too worried about that ( just everything else!) ��

m0bov

Once you have a mortgage, then go for a solictor who is on the panel for your lender.

The EA cannot ask to tell the solicitor to do anything, they act for you. Its far too early for searches, only once the memorandum is sent and a lender in place would it start.

I would suggest getting quotes for a sol and then check they can deal with Natwest and get ready.

Surrey_EA

chrissie83 wrote: »

I didn’t realise I’m meant to instruct the solicitor, he just said he is doing it ( see how clueless I am) can I use the same one as I’m using to sell with?

I can't imagine any solicitor would take instructions from an EA anyway.

Yes, unless there is a good reason not to, it's best to use the same solicitor for sale and purchase.

kingstreet

chrissie83 wrote: »

No, the house is being renovated. I’ve seen the bathroom & I’ve chosen the kitchen myself so I’m not too worried about that ( just everything else!) ��

It may be treated as a newbuild and a reduced maximum loan to value applied.

From NatWest criteria;-

New build

A new build is defined as any property built, first occupied in its current state or significantly modernised, refurbished or altered within the last two years.

The maximum loan-to-value on a residential new build house is 85% (65% for buy-to-let). For a residential new build flat, the maximum is 75% (65% for new build buy-to-let flats)

chrissie83

I really hope not king street or we are we are well & truly screwed.
How likely is it do you think?

Thrugelmir

chrissie83 wrote: »

I’ve chosen the kitchen myself so I’m not too worried about that ( just everything else!) ��

Any payment required upfront?

Surrey_EA

chrissie83 wrote: »

I really hope not king street or we are we are well & truly screwed.
How likely is it do you think?

How extensive are the renovations?

It will probably come down to the discretion of the individual valuer.