When to instruct solicitors...

Navigaor31

Hi, Ultra n00b and probably stupid question here.
We have had an offer accepted, and have an agreement in principle for the mortgage, and it's currently going through...whatever else it needs to go through with the survey happening tomorrow.
We know the solicitors we are using and have had a quote and relevant paperwork through etc.  They are requesting the paperwork back and a £250 initial fee to get the ball rolling.  I'm fine with all of that, but being the pessimist that I am, I am nervous about the mortgage offer actually being made after underwriting etc. and then potentially losing the £250 if this one falls through.
But i'm also aware that the solicitors are the longest part of the process and we should have probably started this by now. Although the offer was only accepted on the 13/10/2020 so it's still early doors.

Should we just take the gamble or wait the extra few days for the mortgage offer? - I'm hopeful it will be back next week as it was submitted on 14/10/2020 and the current turnaround time is 15 days on average.

Thanks guys!

greatcrested

Speed Vs potential cost.

Your choice!

Navigaor31

greatcrested said:

Speed Vs potential cost.

Your choice!

Yeah, I figured it may come down to something as simple as this. From my end there is absolutely no rush, as we are FTB, with now house to sell/move out of as we are living with family at the minute.   

I'm hopeful we will hear back from Mortgage early next week, we have everything ready to go for the solicitors so will be a case of driving up and popping through the door as they are local, to hopefully get it started quickish. Whilst we are in no rush, the obvious excitement can take over also! haha!

ss2020jd

Congratulations on having your offer accepted. 

I have always thought, and in my experience, the solicitor was the first thing that goes on the memorandum of sale, but then you do say that you know the one that you are using and have requested paperwork etc. They may already take this as being appointed and expect the £250 for the first stages of work. Did they give any details as to what would constitute ‘getting the ball rolling’ and would activate charges due? Did you have a letter of engagement that you have signed? 

If you are confident that the survey could be returned that soon you could hang on if you’re worried there might be problems but hopefully it won’t come to that. 

Navigaor31

ss2020jd said:

Congratulations on having your offer accepted. 

I have always thought, and in my experience, the solicitor was the first thing that goes on the memorandum of sale, but then you do say that you know the one that you are using and have requested paperwork etc. They may already take this as being appointed and expect the £250 for the first stages of work. Did they give any details as to what would constitute ‘getting the ball rolling’ and would activate charges due? Did you have a letter of engagement that you have signed? 

If you are confident that the survey could be returned that soon you could hang on if you’re worried there might be problems but hopefully it won’t come to that. 

No paperwork signed as of yet with the solicitors, I perhaps need to double check it all again TBH.   But essentially, I have given the instruction to them for the property. With the details passed over to the estate agents (all be it being purple bricks).  The £250 is the initial fee, re-looking at it all. So chances are we are liable for this any way regardless now.

I think holding out another couple of days may be my best shout by the sounds of things. If mortgage is all fine, then obviously we submit the forms and pay up. If it doesn't go through then we give them a call and let them know and see what they say I guess. Hahah!

It's all happened a bit quicker than we anticipated because the right house turned up, so all been a good old rush!. I'm hopeful we pass underwriting i'm just trying to be realistic about things! Haha!

ss2020jd

Well that’s good and exciting!  No harm being realistic either as then you are prepared and know what the pitfalls could be. I’m sure the solicitors would be fine if they haven’t started any of the work and you haven’t signed anything. They’ll realise that they will be instructed for another sale if not this one. But hoping this all goes well and you get everything as expected. Good luck! 

trix-a-belle

I would say your estate agent will be wanting you to instruct a solicitor formally so they can issue the memorandum of sale but then you said you're buying through purplebricks
Also if you're worried about losing £250 you need to put some big pants and your helmet on for the ride that is buying a house as anyone could pull out until contracts are exchanged (meaning you would still have to pay for all solicitor work completed up to that point)

Navigaor31

trix-a-belle said:

I would say your estate agent will be wanting you to instruct a solicitor formally so they can issue the memorandum of sale but then you said you're buying through purplebricks
Also if you're worried about losing £250 you need to put some big pants and your helmet on for the ride that is buying a house as anyone could pull out until contracts are exchanged (meaning you would still have to pay for all solicitor work completed up to that point)

Oh no absolutely, I understand there is plenty of places to fall down, I just want to minimise the bits I have actual influence over aha!

Yeah PurpleBricks aren't the best sadly tried to avoid them as much as possible but here we are...Can't be helped i guess.

MovingForwards

Nothing stopping you from instructing your solicitors and saying do not do anything until I say. That way you have your solicitor, but are not incurring costs.

MaryNB

MovingForwards said:

Nothing stopping you from instructing your solicitors and saying do not do anything until I say. That way you have your solicitor, but are not incurring costs.

This is what I did. I selected my solicitor and told them I'd be using their services but not to start until further instruction.
I got my mortgage application in just after my offer was accepted but didn't tell my solicitors to start until the chain was complete.

Thrugelmir

£250 upfront isn't for the solicitors fees. It's to cover the cost of search fees (i.e. disbursements)  that the solicitor will incur on your behalf. By having cleared funds. As soon as the mortgage offer is received. The solicitor will apply for the searches. These can take several weeks to come back. Until they are received the real work cannot even commence. 

The speed of the transaction will be determined by who is in the chain, their agenda, and the issues that arise along the way.