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  • FIRST POST
    • MystArch89
    • By MystArch89 13th Jul 18, 8:05 PM
    • 26Posts
    • 4Thanks
    MystArch89
    FTB Seeking Clarification Upon Contract Exchange
    • #1
    • 13th Jul 18, 8:05 PM
    FTB Seeking Clarification Upon Contract Exchange 13th Jul 18 at 8:05 PM
    Hi there, first off apologies and thanks in advance for all the great advice that everyone on this forum is giving out!! And patience for reading my question, but i'm just trying to get some help and clarification prior to my contract exchange. (Very excited to finally find a place to move to call my own)

    Time line estimation : Completion of Dec 18, but moving in of Q1 2019.

    1. I'm in the process of buying a new build from berkeley , are they any much good? i've asked my solicitors and all he/she says is pretty much chuckling at me and said they are good, unlike TW and Big P apparently. (Btw this solicitor is a panel of berkeley as they were giving me a money incentive to use their panel so i though every pound saved is pretty much saving considering the big purchase). So just trying to seek a second opinion.

    2. Secondly, i've now secured a mortgage offer from Bank A to proceed with contracts exchange. However I am looking to seek a new mortgage closer to the time of completion as im using Bank A now for the sake of ease of exchange of contract but i do not like the rates and my personal circumstances will change come nearer to completion and the IFA has also suggested to seek another mortgage come nearer to completion as i will get a better rate then. (Would i need to disclose this to my solicitor? as he is charging for acting for lender , would I be charged twice for this service if i opt to change lender and seek a new mortgage close to completion after exchange of contract?)

    3. As im utilising the goverment HTB equity loan, Berkeley has said this is possible as they will declare the completion date of Dec 18 to be able to utilise it, but proper moving in is only in Q1 2019. Would i have to insist this get written into the contract? I've got the draft now but no where does it mention anything about this, im guessing they cant due to HTB loan? As it would not be approved should the completion dont happen in 6 months.

    4. I've read lots of other forum to try and insist for a snagging prior to completion written into the contract. Does developer usually cave in to this request? But considering my above situation, how would this work as well for me if they agree.


    Really sorry for the long questions! And Many thanks in advance as well again!!!

    Last edited by MystArch89; 13-07-2018 at 8:13 PM.
Page 1
    • TamsinC
    • By TamsinC 13th Jul 18, 8:07 PM
    • 491 Posts
    • 602 Thanks
    TamsinC
    • #2
    • 13th Jul 18, 8:07 PM
    • #2
    • 13th Jul 18, 8:07 PM
    4. I've read lots of other forum to try and insist for a shagging prior to completion written into the contract. Does developer usually cave in to this request? But considering my above situation, how would this work as well for me if they agree.


    Really sorry for the long questions! And Many thanks in advance as well again!!!

    Originally posted by MystArch89
    I cant answer any of your other questions but I believe the word you are looking for is snagging!
    • MystArch89
    • By MystArch89 13th Jul 18, 8:12 PM
    • 26 Posts
    • 4 Thanks
    MystArch89
    • #3
    • 13th Jul 18, 8:12 PM
    • #3
    • 13th Jul 18, 8:12 PM
    I cant answer any of your other questions but I believe the word you are looking for is snagging!
    Originally posted by TamsinC
    Ah your totally right!! Wonder where my mind have gone while i was typing! Gonna amend it right away!!
    • G_M
    • By G_M 13th Jul 18, 8:25 PM
    • 45,329 Posts
    • 54,345 Thanks
    G_M
    • #4
    • 13th Jul 18, 8:25 PM
    • #4
    • 13th Jul 18, 8:25 PM
    ...... help and clarification prior to my contract exchange.

    Time line estimation : Completion of Dec 18, but moving in of Q1 2019.

    Dec 18 may be a target, but it is by no means guaranteed. And with a New Build, it could be months later.


    1. I'm in the process of buying a new build from berkeley , are they any much good?

    no idea

    i've asked my solicitors and all he/she says is pretty much chuckling at me and said they are good, unlike TW and Big P apparently. (Btw this solicitor is a panel of berkeley as they were giving me a money incentive to use their panel so i though every pound saved is pretty much saving considering the big purchase). So just trying to seek a second opinion.

    Can't comment other than to say you've made a major newbie mistake!
    Since the solicitor clearly depends on the seller for an obgoing stream of clients, he is
    a) not going to bad-mouth them,whatever his opinion
    b) put your interests above theirs]


    ALWAYS CHOOSE, AND INSTRUCT, YOUR OWN INDEPENDENT SOLICITOR.



    2. Secondly, i've now secured a mortgage offer from Bank A to proceed with contracts exchange.

    Is this a firm mortgage offer, based on a full application (for which you will have paid a fee), or just a Mortgage In Principle (MIP)?

    However I am looking to seek a new mortgage closer to the time of completion as im using Bank A now for the sake of ease of exchange of contract

    Exchanging Contracts based on A and then switching to B after Exchange is madness,

    but i do not like the rates and my personal circumstances will change come nearer to completion and the IFA has also suggested to seek another mortgage come nearer to completion as i will get a better rate then.

    Then why have you applied to A? Makes no sense.

    (Would i need to disclose this to my solicitor? as he is charging for acting for lender , would I be charged twice for this service if i opt to change lender and seek a new mortgage close to completion after exchange of contract?)

    Of course your solicitor will need to know.
    And if he is not on the panel for B he won't be able to act for B, necessitating either a 2nd solicitor for B, or a complete change of solicitor for yourself (to one on B's panel).


    You will be charged by the solicitor on the basis of work done. If duplicate work arises, you'll be charged extra.


    3. As im utilising the goverment HTB equity loan, Berkeley has said this is possible as they will declare the completion date of Dec 18 to be able to utilise it, but proper moving in is only in Q1 2019.Would i have to insist this get written into the contract?
    No developer will commit to a Completion date. If a storm hits, or all the brickies go on strike, the building will not be finished on time.

    I've got the draft now but no where does it mention anything about this, im guessing they cant due to HTB loan? As it would not be approved should the completion dont happen in 6 months.

    I'm unfamilar with HTB.


    4. I've read lots of other forum to try and insist for a snagging prior to completion written into the contract. Does developer usually cave in to this request? But considering my above situation, how would this work as well for me if they agree.
    You inspect the property (or your surveyor does) prior to Completion, and again after.
    Originally posted by MystArch89
    .................................................. ..........................................
    • MystArch89
    • By MystArch89 13th Jul 18, 8:47 PM
    • 26 Posts
    • 4 Thanks
    MystArch89
    • #5
    • 13th Jul 18, 8:47 PM
    • #5
    • 13th Jul 18, 8:47 PM
    .................................................. ..........................................
    Originally posted by G_M
    1.On the solicitor side of things, i do realise i was taking a risk on using their panels. I did do some digging and findings myself by contacting some of their google reviews etc and asking the local estate agent about them ( even though i'm not using the estate agent in the end).

    Reviews have been generally good and helpful thus i decided to went ahead with it as fees structure wise they were on par with the higher end firms. Have seen some other independent ones in the area and their google reviews was just so terrible that i just dunno how to approach things.

    2. Mortgage wise - its a full application, no product fee, but an official offer have been issued. Due to my personal circumstances of being a visa holder, Bank A is not willing to let me have their better rates, Bank B which have the best rate said will only consider if i secure my ILR which is happening end of Oct. The LTV which i'm taking out is quite low at ~50%. Its quite a tricky situation as it involves gifted deposit and the availability of the gifted deposit, considering the completion is not scheduled till Dec/Jan, Bank A dont need the gifted deposit availability till 28 days prior to completion, while Bank B insist if i wanted to make the application, they will only consider it if i can move the money prior to the contract. the 6 months long wait means i'll lose out on the interest/penalties for redeeming my bonds earlier which is the deposit.

    4. HTB equity application will only be considered if the completion is stated within 6 months of application for the property. I can part way with the HTB, but the 20% equity is quite helpful as it would ease my financial constraint and cash flow of things. and i do have plans to perhaps fully redeem it within 1-2 years anyway should the property price stay stagnant or perhaps dip a little due to new built.

    Appreciate again for your reply G_M.
    • kingstreet
    • By kingstreet 14th Jul 18, 9:24 AM
    • 34,129 Posts
    • 18,520 Thanks
    kingstreet
    • #6
    • 14th Jul 18, 9:24 AM
    • #6
    • 14th Jul 18, 9:24 AM
    It's nine months to complete a HTB application.

    Three months from issue of ATP and six months from issue of ATE.

    However, you must choose a completion date no later than March 2019 as from April 2019 you would be into the 2019/2020 funding allocation which hasn't been agreed with the HCA yet.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • MystArch89
    • By MystArch89 14th Jul 18, 1:50 PM
    • 26 Posts
    • 4 Thanks
    MystArch89
    • #7
    • 14th Jul 18, 1:50 PM
    • #7
    • 14th Jul 18, 1:50 PM
    It's nine months to complete a HTB application.

    Three months from issue of ATP and six months from issue of ATE.

    However, you must choose a completion date no later than March 2019 as from April 2019 you would be into the 2019/2020 funding allocation which hasn't been agreed with the HCA yet.
    Originally posted by kingstreet
    Hi Kingstreet,

    So that pretty much falls in line with the developer time scale then. As they are pushing for a Dec 18 completion, but they reckon it might get delay into early Q1 19. Thats great to know then as I kept wondering would i be doing completion without having the keys to be able to hold onto the HTB side of things.

    Would you have any idea on any of the other issues i might have in regards to the mortgage switching?
    • kingstreet
    • By kingstreet 14th Jul 18, 10:25 PM
    • 34,129 Posts
    • 18,520 Thanks
    kingstreet
    • #8
    • 14th Jul 18, 10:25 PM
    • #8
    • 14th Jul 18, 10:25 PM
    Plenty of lenders issue offers which can be extended or which have longer drawdown deadlines for newbuilds.

    I see no need for two applications.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • MystArch89
    • By MystArch89 15th Jul 18, 1:30 PM
    • 26 Posts
    • 4 Thanks
    MystArch89
    • #9
    • 15th Jul 18, 1:30 PM
    • #9
    • 15th Jul 18, 1:30 PM
    Plenty of lenders issue offers which can be extended or which have longer drawdown deadlines for newbuilds.

    I see no need for two applications.
    Originally posted by kingstreet
    Reason being for this is due to my current resident status which is subject to change end of Oct but exchange is happening mid Aug.

    And some cheaper mortgage rate is currently not available to myself according to my IFA (have not tried approaching them myself just yet). But come Oct, that should change things and i would rather have a better rate considering completion is not even scheduled for another 4-5 months after that.
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