FTB Purchase and Exchange in Lockdown?

Salbot_

Hello!

I was wondering if I could ask your advice.

I am a first time buyer and made an offer on a flat just before Christmas that got accepted. I had been looking for a while so was pleased to finally find somewhere and felt pushed to put in an offer higher than I had originally planned, but the flat got valued at the price I offered so dealt with it.

I had a good survey done and although there were a few issues (indemnity insurance is needed being one) I decided to proceed.

The whole process I have been trying to push things a long as quickly as I can from my part as I work in the film industry and I was about to start a stint of night work so was hoping to have exchanged and completed before this happened. However, it didn't happen. The sellers, maybe their solicitor?, seemed to want the process to drag out. It seemed odd but it can only go as fast as it can go. I was always told this was a chain free purchase but maybe it isn't? When the lock down happened, I got furloughed. I have been in touch with my mortgage advisor who is talking to the lender to see if this will and how it will affect my position.

The second day of the lock down the estate agents contacted me to contact my solicitor (odd) about the final searches that were outstanding. My solicitor has also been furloughed and I am now dealing with another member of the team.

The estate agent has contacted me AGAIN several times to agree on an exchange date. I have numerous outstanding bits of paperwork I haven't seen yet,  I'm waiting for a deed of variation (currently I have no legal access from the pavement to the front door of the 2nd floor flat amoungst other things), and due to the nature of the lock down and my furlough I am not keen to set any kind of date.

It is likely I will not be going back to work immediately, much like other industries, and so I have savings that could cover the mortgage for a little while but it is a limited source of savings and so I want to make sure I time the exchange right.

I understand that no-one knows what is going to happen from day to day but I find it a little unfair that now the vendors and estate agents are pushing to complete.

What should I do now? I feel like the estate agent should be talking to my solicitor and the solicitors should be talking to each other. I don't want to agree to an exchange date currenty.

Also, out of interest, What are peoples thoughts about purchasing a property in this climate? I am happy to proceed but am happy to take others thoughts on board.

Thank you for your time x

tom9980

Tell the agent that you are waiting for the paperwork (deed of variation) and until all paperwork is in order you are unable to set a date. Just be polite and firm in your response.

As for buying in this climate, if you have a reasonable job that is secure, you are likely to stay in the area for at least 5 years, and it is at least a 2 bed then buying might still be ok for you as long as you understand the risks if their was to be a major economy and housing crash.

jonnygee2

Also, out of interest, What are peoples thoughts about purchasing a property in this climate? I am happy to proceed but am happy to take others thoughts on board.

If you want to buy and can buy now, then go ahead. Yes house prices might go down, but then that's also been the prediction for several years in a row and if you keep waiting because there's a possibility the market will drop in the future then you will be  waiting for the rest of your life. 

Still, you need to decide. You cannot realistically keep the 'I'm interested but I don't want to set a date' thing going for much longer. If you are not willing or able to buy until the lockdown is over, then you need to let them know and they probably need to put the property back on the market.

Wait for the verdict from your mortgage broker, and then either set a date, start hastling your solicitor and moving things forward, or tell them outright you aren't moving for the time being.

davidmcn

Salbot_ said:

I feel like the estate agent should be talking to my solicitor and the solicitors should be talking to each other.

The EA should be talking to their own client's solicitor - if they're not, then tell them to go away and do that and sort out the title problem as a first step.

Tiglet2

The EA is only interested in getting the sale completed so they can collect their commission.
If some of the legal work is considered outstanding (Deed of Variation) by your solicitor, then you are not in a position to proceed to exchange.  Tell the EA that until your solicitor has received satisfactory answers to enquiries, you are not ready to exchange.  Then the ball is in the seller's/seller's solicitors court.

MovingForwards

Estate agents call your solicitor and the sellers solicitor for an update,

sometimes they don't understand the legal process and think things are further forward than they are or interpret what was said wrongly,

take the wrong information back to the seller /  you / the other solicitor; causinga bit of panic for the buyer/ seller in the process.

They can ask for completion dates, but nothing is set in stone until contracts are exchanged.

Contracts cannot be exchanged until both solicitors have dealt with queries / got agreement for any indemnity policies / you have your searches back and anything else that needs to be done.