First time buyer house insurance

okhajut

I have been told that the house insurance needs to be in place before the exchange of contracts. I don't know when the exchange of contracts will take place exactly. I also don't know when I will actually have completed the move into the house. Basically I have been told that I must give notice to my current landlord only after the exchange of contracts. This means that there will be time between exchange of contracts and me having moved into the property.

I contacted one insurance company and they said that since the house will (possibly) be vacant for some time until I move there after exchange of contract and the event of moving in is more than 30 days into the future, they can't give me insurance yet.

Also, there are various questions that come up when I try to get quote online about nature of roof, locks e.t.c. I have attached these. How exactly do I find out the correct answers when I don't even live there?

The above means that I am not able to sort out insurance yet, but I need to have it in place as the exchange of contract is expected 2 to 4 weeks from now.

What do I do ???

MovingForwards

You're overthinking everything.

Just because you have to give a month or so notice to your landlord, doesn't mean you can't move into your new home, or decorate it for a few weeks and then move in.

Do a quote for 30 days time, you can always repeat the quote if it expires before you exchange.

Was there a river, lake or some other body of water near your proposed purchase? If in doubt look on Google maps / earth.

Same with trees, you would have seen them when viewing the property and surrounding area.

Your survey will provide you answers to age, building material etc.

Did you see any smoke detectors when viewing? If in doubt say no.

You can update your info after getting the keys and seeing something different.

MovingForwards

I've just looked at your thread from July. If that's the house you're buying it's a slate roof and brick walls.

Did the back of the property have an extension? If so, was it a flat roof or did it have a slope like the front?

Click on the purple bit to find out about neighbourhood watch, or just say no.

Do you have any other doors, aside from the front door and patio doors to get outside? If yes click yes, if no click no.

The history questions - obtain the info from the property questionnaire completed by the seller and the survey you had done.

okhajut

OK there is one more issue here, do we have to move into new house immediately after the exchange of contract? How is the move-in date decided?

I am renting right now and I will give notice to my landlord after the exchange of contract. Thereafter, I shall have to wait for 4-8 weeks before I can actually move into the new property. How does this work?

kingstreet

A completion date is agreed between all parties in a chain BEFORE contracts can be exchanged. You will therefore know the gap between the two!

NSG666

You can move in immediately upon completion - sometimes Exchange of Contracts and Completion are on the same day. Upon Completion the house is yours.

If you have a date for Completion then you can give your landlord notice in advance but if you want to wait for Exchange of Contracts before giving notice upon Completion you can either move in to your new home or stay in the rental - either way you will be paying the rent (and mortgage if you have one)

MovingForwards

You kind of pick when you move homes and you've obviously picked the property to buy as you want to live in it.

As I said before:
- maybe your new one needs some work doing
- or it needs decorating as it's got funky wallpaper
- or there's no carpets and your fitter isn't available for 3 weeks

- or you can't get removals for a couple of weeks.

The way I did it was gave notice on my rental immediately after exchanging.
Completed and picked the keys up the next day, arranged the removal company.
Started decorating and moving small items in that I could fit in my car.
Removals moved furniture etc and I moved in.
Slowly emptied out the rental and cleaned it over the remaining time i had the rental.
Handed keys back.

My purchased home was my home base within a week of getting the keys and I lived in it.

The rental I was emptying out and didn't live in as I don't have furniture a week after getting the keys to my property.

okhajut

When exactly do we start paying money to the lender, just after this exchange of contract? 

What exactly is meant by "completion" and what happens in "completion"? I thought that the exchange of contract is the finish line but do I understand correct that it is not?

NSG666

You'd need to check with your lender.

Money is paid over to the seller and you get the keys.

MaryNB

okhajut said:

When exactly do we start paying money to the lender, just after this exchange of contract? 

What exactly is meant by "completion" and what happens in "completion"? I thought that the exchange of contract is the finish line but do I understand correct that it is not?

Exchange is the point at which the purchase becomes legally binding and you pay the purchase deposit (10%) to the seller, and by "pay" I mean you transfer the 10% to your solicitor before exchange takes place so they can transfer the money on your behalf. All parties have to agree on exchange and completion dates. Your solicitor will ask you on the day of the proposed exchange if you give your authorisation for them to exchange contracts on your behalf. The agreed completion date becomes binding at exchange. It can be the same day as exchange or several weeks later. No one person decides it, it has to be agreed by all parties. Exchange cannot take place until a completion date has been agreed.

Because the purchase is legally binding at exchange you should have home insurance from exchange in the unlikely event something happens between then and completion. Your lender may insist on it and therefore your solicitor (who is acting for your lender as well) will require it before exchanging contracts.

Completion is the day the house becomes yours and you get the keys. If your mortgage deposit is more than the 10% you transferred at exchange, the rest of your deposit must be sent to your solicitor before completion. Generally I think the property legally becomes yours at 1 or 2pm (check you contract) but delays with seller moving out are common. You get the keys, take meter readings, set up all your utility and council tax accounts on this day.

Your mortgage funds will probably arrive the day before completion so you will be charge interest from this date. You wont pay your first mortgage payment until after you complete but when this occurs will depend on your lender so you'll need to refer to them for your first payment date. The first payment will likely be more than your standard payment and on a different day of the month.

MovingForwards

@okhajut

Have a read through this, it will make your life a lot easier:

https://www.which.co.uk/money/mortgages-and-property/first-time-buyers/buying-a-home/how-to-buy-a-house-alm0r9l4yf5x