Kent reliance

annetheman

rachlikeswinter said:

annetheman said:

rachlikeswinter said:

Maaxx said:

Glad everyone's process is moving along! I'm still in the dark with ours! The last i heard from our MB was last Wednesday and they said were going to speak to KR but no update since then! I'm waiting until tomorrow to chase! I think I shouldn't expect any progress to happen for me this month, maybe best to look forward to January...

Honestly I'm kind of fine/come to terms with it happening in January, gives something to look forward to in the inevitable lockdown 3 (ugh) and also one more month to save for those pesky solicitor fees 

Love the positive spirit and yes!! I didn't realise some of the money I would need to pay my solicitor be "apportionment" plus one month in advance i.e. £1.5-2,000 minimum. BEFORE completion.... So I didn't budget for this - I actually couldn't complete until March to allow me to save this comfortably, so I don't mind if I don't get the offer til Feb or so!

This is on top of £1,700 solicitor fee, £500 to broker on offer (if offer), £500 moving van..... I'm never doing this again lol

What is this apportionment thing?! Also £2k plus about £1700 after - that seems high for solicitor fees?

My solicitor fees are around £1500 and then mortgage application + broker is another £800 ish.

Oh god yeah moving van - I’m going to rent one and drive it myself. Luckily I own very little because I live incredibly frugally in order to plough my life savings into an overpriced flat haha. Can’t wait to own furniture for the first time in my life!!

Apportionment is basically a retainer service charge and rent; usually it'll be the next months' worth of both plus however many days in that month of completion - service charge and ground rent for non-Shared Ownership, service charge and rent for Shared Ownership - *edit to add link*: https://freeconveyancingadvice.co.uk/sale-purchase/selling-property.

E.g. if you complete today and service charge is 100 per month, rent is 300:
100 + 300 for next month = £400
PLUS
today is the 15th, so 
100 (service charge) x 12 (months in the year) = 1200 (service charge per year) / 365 (days in the year) = 3.28 (per day) x 16 (days left in December) = £52.48 total service charge left for this month.
£52.48 + £100 (next month) = £152.48 to pay for service charge apportionment
Same calculation for rent ...... total would be £157.76 + £300 (next month) + £152.48 = £710.24 to pay to solicitors today...

For me worst case apportionment would be £226 (2 months service charge) + £1,200 (2 months rent) if I completed on the 1st = £1,426 minimum.

Consider that service charge for the next month estimate may be higher, so I've over-compensated but still... March completion would be preferable as also didn't know about this cost!

Total will be 500 broker + 1,700 solicitor + 445 Kent Reliance + 500 mover = £3,145 before the apportionment... So total purchase costs around £5,000. 

Damn... I'm jealous you don't have bulky furniture haha! But how exciting to get it all new for your first place

Nic88Nac

Our fees all in are £2500 ish not including this gift indemnity insurance that has been mentioned earlier - eating into our budgets! 

rachlikeswinter

annetheman said:

rachlikeswinter said:

annetheman said:

rachlikeswinter said:

Maaxx said:

Glad everyone's process is moving along! I'm still in the dark with ours! The last i heard from our MB was last Wednesday and they said were going to speak to KR but no update since then! I'm waiting until tomorrow to chase! I think I shouldn't expect any progress to happen for me this month, maybe best to look forward to January...

Honestly I'm kind of fine/come to terms with it happening in January, gives something to look forward to in the inevitable lockdown 3 (ugh) and also one more month to save for those pesky solicitor fees 

Love the positive spirit and yes!! I didn't realise some of the money I would need to pay my solicitor be "apportionment" plus one month in advance i.e. £1.5-2,000 minimum. BEFORE completion.... So I didn't budget for this - I actually couldn't complete until March to allow me to save this comfortably, so I don't mind if I don't get the offer til Feb or so!

This is on top of £1,700 solicitor fee, £500 to broker on offer (if offer), £500 moving van..... I'm never doing this again lol

What is this apportionment thing?! Also £2k plus about £1700 after - that seems high for solicitor fees?

My solicitor fees are around £1500 and then mortgage application + broker is another £800 ish.

Oh god yeah moving van - I’m going to rent one and drive it myself. Luckily I own very little because I live incredibly frugally in order to plough my life savings into an overpriced flat haha. Can’t wait to own furniture for the first time in my life!!

Apportionment is basically a retainer service charge and rent; usually it'll be the next months' worth of both plus however many days in that month of completion - service charge and ground rent for non-Shared Ownership, service charge and rent for Shared Ownership - *edit to add link*: https://freeconveyancingadvice.co.uk/sale-purchase/selling-property.

E.g. if you complete today and service charge is 100 per month, rent is 300:
100 + 300 for next month = £400
PLUS
today is the 15th, so 
100 (service charge) x 12 (months in the year) = 1200 (service charge per year) / 365 (days in the year) = 3.28 (per day) x 16 (days left in December) = £52.48 total service charge left for this month.
£52.48 + £100 (next month) = £152.48 to pay for service charge apportionment
Same calculation for rent ...... total would be £157.76 + £300 (next month) + £152.48 = £710.24 to pay to solicitors today...

For me worst case apportionment would be £226 (2 months service charge) + £1,200 (2 months rent) if I completed on the 1st = £1,426 minimum.

Consider that service charge for the next month estimate may be higher, so I've over-compensated but still... March completion would be preferable as also didn't know about this cost!

Total will be 500 broker + 1,700 solicitor + 445 Kent Reliance + 500 mover = £3,145 before the apportionment... So total purchase costs around £5,000. 

Damn... I'm jealous you don't have bulky furniture haha! But how exciting to get it all new for your first place

Oh I see... wow I had no idea. I presumed rent started from the date you moved in i.e if you complete on the 15th, rent is due every month on the 15th. Good to know!
Luckily I have a large-ish emergency fund so can dip into that if needs be!! Ugh so much money.

rachlikeswinter

Haven't posted my timeline in a while, for anyone recently new to the thread, here's where I'm at.
Background: Single applicant, buying a 25% share of 2 bed S.O. flat in London, with a 65% LTV on the owned share. Asking to borrow circa £72k which is around 2x income. Self employed/Ltd company director with 1 year accounts. Initially my broker put me in to apply with Halifax but quickly became apparent they deemed my income not acceptable and wouldn't take into account projection of earning. So approached KR, as they do.

DIP accepted - 25.9

MoS received, affordability passed with developer, submitted and paid for mortgage application, hard credit check, instructed solicitors - 8.10

Searches Began - 16.10

Underwriter began - 19.10 - Further documents requested & Accountants email address for projection of income certificate

New MoS uploaded - 21.10

Accountant sent certificate and received by KR, other docs marked as satisfied - 30.10

Valuation - 6.11

Valuation report received by KR - 9.11

Valuer requested EWS1 form - sent 16.11

Valuer rejected form - 25.11

Received new EWS1 form from developer and uploaded to KR - 8.12

- Still not had searches back / solicitors still doing enquiries

- Potentially due an update from KR tomorrow.

Such fun

csumm4

My MA said he has another call with KR later today to chase them. Really hoping we get some info as to why there is such a delay 🤞

Rachielovescats

Full application submitted 12/11. Lots of emails back and forth from mortgage broker to me with lots of requests for further information! I’m self employed, and have been for 4.5 years.  Sole applicant. I have my own deposit built up from my savings. Currently all I have left outstanding is the updated memorandum of sale from housing association - they got my percentage wrong last week!!! 

Fingers crossed for an offer either just after Xmas or at new year! 

csumm4

@Rachielovescats we had the same thing with our MOS.. we sent our updated one in a week last Friday and no offer through despite being promised we were in the offer queue over a week ago 🤦‍♀️

rachlikeswinter

@Rachielovescats @csumm4 Yeah my developer got my MoS wrong (quite early on and luckily I spotted it) - ground rent figure wasn't right. They also got the postcode wrong on the EWS1 form! Luckily I have eagle eyes ha.

Honestly I reckon they're probably running on skeleton staff; hardly anyone has taken annual leave this year (for obvious reasons) and now companies are forcing people to use it up before end of the year. So wait times are even slower. But that's just my hunch!

csumm4

Just spoke to our MA.. he said he finally spoke to someone at KR who said all under writing is currently on hold due to the back log. I said I thought that was rubbish as someone on here got their offer the other day. I also said if we are in the offer queue why does that effect us but it all comes under the same umberella. So angry, we gave been in the offer queue now for nearly 2 weeks!!

rachlikeswinter

csumm4 said:

Just spoke to our MA.. he said he finally spoke to someone at KR who said all under writing is currently on hold due to the back log. I said I thought that was rubbish as someone on here got their offer the other day. I also said if we are in the offer queue why does that effect us but it all comes under the same umberella. So angry, we gave been in the offer queue now for nearly 2 weeks!!

Oh what! No way. Surely that means new underwriting is on hold though - they can't put current cases on hold otherwise how will they catch up? What a pain. Sorry you're on such tenterhooks - you should ask your MA to put pressure on the BDM, that's all I can think of.