Buying a house; all advice welcome

[Gemz91]

If the rest of the house was right I wouldn't have been put off by that. Rip the wardrobes out and put up a stud wall. DIY probably a couple of weekends' work (then get a plasterer in, doing *that* nicely is hard) and not particularly difficult.

It amazes me how many people are put off houses by minor things which are easy to change when you consider the £n00,000 you're paying for it. In particular I could never understand why anyone let the colour of the paint influence their choice of house - but there is plenty of evidence that it does.

Its a fair point, but we looked round another house of the same value that we could move straight into after just repainting and re-carpeting so decided to with the other house. I was also going through a trainee train course at the same time so didn't have much time to be thinking of weekend DIY.

 

[DarloRich]

Open any fitted wardrobes in the house. We looked round a house built in the 70's. Two of the adjoining bedrooms had fitted wardrobes in them, the man who lived in the house was a tenet and not house owner, he just happened to mention to us that there was no diving wall in the wardrobes. He opened the wardrobe door and there was no wall, could see straight through to the back of the doors for the wardrobe in the next bedroom. The wardrobe just had two rails in it. Was bizarre. If he'd never told us we'd have probably put an offer in for the house too. Can't imagine it the two sets of wardrobe doors would have provided much sound proofing between the two rooms.

that is an odd one but not, on the face of it, an insurmountable problem. It should be something as simple as a stud wall. However it is when you find out they chopped out a load bearing wall you have problems!

If the rest of the house was right I wouldn't have been put off by that. Rip the wardrobes out and put up a stud wall. DIY probably a couple of weekends' work (then get a plasterer in, doing *that* nicely is hard) and not particularly difficult.

It amazes me how many people are put off houses by minor things which are easy to change when you consider the £n00,000 you're paying for it. In particular I could never understand why anyone let the colour of the paint influence their choice of house - but there is plenty of evidence that it does.

I agree - however I expect the problem is that many people are right up against their budget and are being pushed by agents to look for something slightly more expensive. I know several people who haven't had the spare cash to redecorate when they move in.

It works to the advantage of those of us who can see beyond the minor flaws though. My present house had stood empty and unsold for six months, perhaps because the kids had been allowed to choose their own carpets and paint schemes for their bedrooms which naturally clashed horribly with each other and the rest of the house. My first offer was accepted and the difference between it and the asking price more than paid for a paint job and new carpets throughout.

Indeed - I bid for my house well under the market rate ( and think I could have squeezed a little bit more of the price tbh) because it needed a complete overhaul. I will be honest in that I had to be persuaded by my girlfriend to look at the house because it needed such a level of work but when i got there it was clear the house was structurally sound, solid, well built, with things like new doors and windows and a good roof. Inside was decoratively very dated but offered a complete opportunity to refurbish. When I got in there it just clicked. You have sometimes got to look beyond initial perceptions and really asses the house and the real value.

 

[Bletchleyite]

I agree - however I expect the problem is that many people are right up against their budget and are being pushed by agents to look for something slightly more expensive.

Quite. FWIW, when I went in for a mortgage quote, the adviser complimented me on being one of the few people he'd spoken to who had kept it sensible and *wasn't* trying to overstretch. The agents did try it on, but in the end I didn't *want* a bigger house as I intended to live in it on my own (though I do now have a lodger, a friend who was stuck for somewhere to live and I had a spare room so I thought why not). While in MK the agents seem to cover quite small areas so "upselling" on area wasn't in the game either.

Indeed - I bid for my house well under the market rate ( and think I could have squeezed a little bit more of the price tbh) because it needed a complete overhaul. I will be honest in that I had to be persuaded by my girlfriend to look at the house because it needed such a level of work but when i got there it was clear the house was structurally sound, solid, well built, with things like new doors and windows and a good roof. Inside was decoratively very dated but offered a complete opportunity to refurbish. When I got in there it just clicked. You have sometimes got to look beyond initial perceptions and really asses the house and the real value.

Indeed.

 

[DarloRich]

Quite. FWIW, when I went in for a mortgage quote, the adviser complimented me on being one of the few people he'd spoken to who had kept it sensible and *wasn't* trying to overstretch. The agents did try it on

I was quite clear with my budget with the agents and said there is no way I can obtain a penny more than this figure. Don't try and send me more expensive houses to look at. I cant afford them. They still sent me houses £15/20k above that limit! People must bite.

 

[Gemz91]

that is an odd one but not, on the face of it, an insurmountable problem. It should be something as simple as a stud wall. However it is when you find out they chopped out a load bearing wall you have problems!

I agree, I've built plenty of internal walls in the past, and I'm not shy to a bit of DIY. Just didn't need the hassle at the time, and there were plenty other houses of around the same price and in my budget at the same time in my city so wasn't something I was going to do.

On the other hand, if the house had taken my breath away and that was the only problem, I'd have bought the house, but on my budget that wasn't the case.

 

[Thebaz]

I would recommend using a broker to find you the right mortgage (you don't pay them, they take commission from the bank) as they have access to products not available on the High street. Ours was excellent. Used him when remortgaging as well and he saved us over 400 a month.

 

[The Ham]

I was quite clear with my budget with the agents and said there is no way I can obtain a penny more than this figure. Don't try and send me more expensive houses to look at. I cant afford them. They still sent me houses £15/20k above that limit! People must bite.

Although depending on what the market is doing you could offer just below your budget as you may have your offer accepted.

Unless the market is overheated (which it shouldn't be now) try a cheaky offer 10-15% below the market value may save your something.

You will need to be willing to play hardball of that's below your budget though as the agent may tell the seller what your upper limit is. That could be as simple as stating that you'll be willing to look at houses up to £xxx,000 but only if there's likely to be offers accepted at your budget of £yyy,000. Then it's reasonable to stick to £yyy,000 and if it's refused then remind the agent of the above and say your not willing to go higher.

Maybe even add in some other justification, such as not near to public transport, schools, you think that xxxx needs doing, etc. (Obviously any of tgis need to be believable and may have needed to be mentioned to the agent before, maybe on previous viewings of other properties. For instance a single guy isn't likely to be believed if they start talking about wanting to be near schools, or if they are it could be for all the wrong reasons! Likewise, public transport could be as simple as on a previous property asking how far it is to public transport. Conversely if the house looks amazing, if you stay saying that you want to replace the bathroom it's likely to make you look foolish).

 

[Dai Corner]

Although depending on what the market is doing you could offer just below your budget as you may have your offer accepted.

Unless the market is overheated (which it shouldn't be now) try a cheaky offer 10-15% below the market value may save your something.

You will need to be willing to play hardball of that's below your budget though as the agent may tell the seller what your upper limit is. That could be as simple as stating that you'll be willing to look at houses up to £xxx,000 but only if there's likely to be offers accepted at your budget of £yyy,000. Then it's reasonable to stick to £yyy,000 and if it's refused then remind the agent of the above and say your not willing to go higher.

Maybe even add in some other justification, such as not near to public transport, schools, you think that xxxx needs doing, etc. (Obviously any of tgis need to be believable and may have needed to be mentioned to the agent before, maybe on previous viewings of other properties. For instance a single guy isn't likely to be believed if they start talking about wanting to be near schools, or if they are it could be for all the wrong reasons! Likewise, public transport could be as simple as on a previous property asking how far it is to public transport. Conversely if the house looks amazing, if you stay saying that you want to replace the bathroom it's likely to make you look foolish).

I'm not sure there's any need for the estate agent to know what your exact budget is until you make a formal offer and you need to show you have finance in place. Nor do you need to justify any offer you make. The estate agent is working solely for the seller.

Once you've had an offfer accepted and moved on to the next stage, your surveyor may point out essential work that you where unaware of. Then you can use his report to try to negotiate a lower price.

 

[BantamMenace]

Good evening all, my past couple of weekend's have been filled with property viewings.

Today i found the one i'm going to pursue and make a bid for on Monday morning.

The property is listed at offers over £200k but the seller, who showed me around, admitted he'd done the house up with the intention of his family moving in but his wife had sadly left him so now he required somewhere smaller and needed to sell relatively quickly to help settle his divorce bill. I think all these things play into my favour. He admitted he'd had a couple of bid but they weren't what he was after and he was resigned to the fact he wasn't going to get back what it'd cost him to buy and do up.

On Monday I think i'll make an offer of £195k and if it's rejected i'll offer the £200k he's after. The house was truly the finished article and in a similar style to what i'd have done myself. It has the added bonus of integrated appliances that he said would be sold with the house so thats a saving for me.

My questions now are around how to go about selecting a solicitor/conveyancer as well as organising the surveys? Are both of these something I should let the bank that is providing my mortgage organise and go along with their recommendations or should i shop around a bit? A colleague at work has recommended a solicitor and shared the quote he got for his house purchase, it seemed a bit expensive at getting on for £1,500. Which survey should I go for, the house has been completely redone and looked to my untrained eye in good condition externally.

Thanks in advance once again.

 

[Dai Corner]

My questions now are around how to go about selecting a solicitor/conveyancer as well as organising the surveys? Are both of these something I should let the bank that is providing my mortgage organise and go along with their recommendations or should i shop around a bit? A colleague at work has recommended a solicitor and shared the quote he got for his house purchase, it seemed a bit expensive at getting on for £1,500. Which survey should I go for, the house has been completely redone and looked to my untrained eye in good condition externally.

Here's a link setting out the timeline of purchasing a property.

https://www.moneysavingexpert.com/mortgages/buying-a-home-timeline

I would get quotes from several local solicitors, recommended by friends or colleagues if possible. A face to face meeting is much better than dealing with a call centre hundreds of miles away, particularly if any problems arise. The £1500 probably includes 'disbursements' - things like the cost of local authority searches and stamp duty - not just the solicitor's own work.

Similarly I'd use a local surveyor who knows the area. Mention to him that the property has recently had work done and anything you've noticed when viewing. A Homebuyers Report and Valuation is the type of survey you want. Note that the mortgage lender will get a valuation but all they care about is getting their money back if you default. The condition of the property is of little concern to them unless it looks like it's about to fall down!

 

[DarloRich]

The property is listed at offers over £200k but the seller, who showed me around, admitted he'd done the house up with the intention of his family moving in but his wife had sadly left him so now he required somewhere smaller and needed to sell relatively quickly to help settle his divorce bill

if i may - just make a few diplomatic enquires about the exact position of the divorce. Have they reached decree nisi or absolute? Have they even started the process, is there a deal on assets etc. Bear in mind that the documents have to be signed by all parties and that can be difficult in these circumstances. Be prepared for delays and stress. However use it in your favour. They need to sell.

 

[BantamMenace]

if i may - just make a few diplomatic enquires about the exact position of the divorce. Have they reached decree nisi or absolute? Have they even started the process, is there a deal on assets etc. Bear in mind that the documents have to be signed by all parties and that can be difficult in these circumstances. Be prepared for delays and stress. However use it in your favour. They need to sell.

Great points to which I haven't got a clue. I got the impression it was a recent thing in its very early stages. At the moment I think it was a separation with the house in joint ownership, not being sold as part of a legal divorce settlement.

 

[Thebaz]

Good evening all, my past couple of weekend's have been filled with property viewings.

Which survey should I go for, the house has been completely redone and looked to my untrained eye in good condition externally.

Thanks in advance once again.

If the house is older than 100 years or thereabouts I would get a full building survey done.

 

[Hadders]

Consider the transport links. Not just roads but rail station and bus routes.

 

[DarloRich]

Great points to which I haven't got a clue. I got the impression it was a recent thing in its very early stages. At the moment I think it was a separation with the house in joint ownership, not being sold as part of a legal divorce settlement.

just keep an eye on it. It could be long winded.

 

[Bromley boy]

Just to say, there is some truly excellent advice being posted on this thread. I will certainly be referring back to it in future as and when I need to buy or sell again.

It's starting to rival money supermarket! Bravo chaps and chappesses.

 

[Bromley boy]

I'm not sure there's any need for the estate agent to know what your exact budget is until you make a formal offer and you need to show you have finance in place. Nor do you need to justify any offer you make. The estate agent is working solely for the seller.

Quite right.

On a related point, from personal experience of working part time in an estate agency when I was a student, I'd urge anyone reading this not to use the in-branch mortgage advisor. They will know what your maximum borrowing capacty and budget is.

Of course this information is supposed to be confidential but it can and will be passed on to the sales agents. If you make an offer on a property below your maximum budget, the spivvy sales agent will duly advise the seller to sweat you for the maximum budget (thereby maximising their commission).

Everyone's a winner. Except the buyer !!!

 

[MG11]

Good evening,

I'm a regular reader and semi-regular contributor to the rail elements of this forum but i've never delved into this area before.

I'm in the early stages of making a move towards buying a house and have identified the areas in which i'm interested, i know my budget and i have a mortgage in principle for an amount slightly above what i want to spend.

I'm looking for advise on where to go from here. I'm browsing Rightmove daily and have so far found 2 houses that fit my criteria and have arranged to view one in the coming weeks.

I'm looking for a dated but liveable 3 bedroom house within 30 minutes drive of my employer (on the outskirts of Coventry). I currently rent a very nice furnished apartment in central Leamington but i've already come to terms with the fact i'll have to move away from Leamington if i'm to afford a house of my own.

£180k-£200k is the absolute top of my budget.

Advise i'm after:

- Does anyone have know any areas i should look at or should avoid that meet my criteria above? The two I've seen that fit the bill so far and in Burbage (Hinckley)
- Any dos and don'ts when viewing properties or speaking to estate agents?
- Any ways to save money when fitting new kitchens, new carpets and decorating?
- Any ways to save money when furnishing a house (at the moments I own little to no funiture of my own)?
- I'm keen to add value to the property I end up buying by removing an interior wall that separates the kitchen and dining room, any advise associated with this?

Thanks in advance.

1. Bedworth is a nice area, with good transport links and many of the period properties you mention.
2. Do speak with the neighbours about generic problems with their properties i.e. damp and mold. Don't pay attention to the interior decord and personal belongings. Think of the house as a blank canvas.
3. Some homeware suppliers offer complementary fitting when you buy the products. I recommend brands like Magnet and Cooke & Lewis.
4. Look out for sales and special offers atahomeware stores, places like Barker & Stonehouse have offers regularly and John Lewis does excellent guarantees in case of faulty furnishings.
5. When you have created the open plan space, make the most of corners. You can add value to a corner of an open plan environment without sacrificing on the main floorspace. Mirrors are a great way to add a sensse of light and space to a room too.

 

[BantamMenace]

Tomorrow morning first thing I'll be making an offer. What documentation do i need to produce to make my bid 'official'.

I have the slight issues that my offers in principle were done online so i don't have a formal document saying I have them, I just log into my broker or my bank's website and the offer is there.

My deposit is also still in my parent's bank account and not mine yet, even if it was transferred to mine it wouldn't appear on an end of month bank statement for a few weeks yet. Can i log into my bank on my mobile and show it to someone to prove i have the funds (once my parents have transferred it to me tomorrow)?

 

[MG11]

Tomorrow morning first thing I'll be making an offer. What documentation do i need to produce to make my bid 'official'.

I have the slight issues that my offers in principle were done online so i don't have a formal document saying I have them, I just log into my broker or my bank's website and the offer is there.

My deposit is also still in my parent's bank account and not mine yet, even if it was transferred to mine it wouldn't appear on an end of month bank statement for a few weeks yet. Can i log into my bank on my mobile and show it to someone to prove i have the funds (once my parents have transferred it to me tomorrow)?

Ask your parents to get a full printed statement from their bank.

 

[DarloRich]

Tomorrow morning first thing I'll be making an offer. What documentation do i need to produce to make my bid 'official'.

I have the slight issues that my offers in principle were done online so i don't have a formal document saying I have them, I just log into my broker or my bank's website and the offer is there.

My deposit is also still in my parent's bank account and not mine yet, even if it was transferred to mine it wouldn't appear on an end of month bank statement for a few weeks yet. Can i log into my bank on my mobile and show it to someone to prove i have the funds (once my parents have transferred it to me tomorrow)?

That could cause you a couple of issues with the lender. Make sure you are up front about it all. Obviously it is your money and it just resting in your parents account as it can earn more interest there There shouldn't be an issue but the lender may want to check if your parents will seek a charge over the property and understand the terms of any loan. Also your parents should seek independent legal advice on the implications of making such a transfer.

You don't need any documents to make an offer. However these days If you have an offer in principle that seems to keep the agents happy. Just print it off and take it with you. Sometimes they ask for proof of deposit and while it isnt really their right to ask it helps keep the agents sweet and means they take your offer seriously.

 

[BantamMenace]

That could cause you a couple of issues with the lender. Make sure you are up front about it all. Obviously it is your money and it just resting in your parents account as it can earn more interest there There shouldn't be an issue but the lender may want to check if your parents will seek a charge over the property and understand the terms of any loan. Also your parents should seek independent legal advice on the implications of making such a transfer.

You don't need any documents to make an offer. However these days If you have an offer in principle that seems to keep the agents happy. Just print it off and take it with you. Sometimes they ask for proof of deposit and while it isnt really their right to ask it helps keep the agents sweet and means they take your offer seriously.

My offer in principle includes me declaring that my deposit source is gift or part gift so my mortgage lender already has knowledge that some or all of the deposit is not money i've saved myself. My parents are happy to put into writing that they don't expect part entitlement to the property or any form of fixed repayment in return if needed.

 

[DarloRich]

My offer in principle includes me declaring that my deposit source is gift or part gift so my mortgage lender already has knowledge that some or all of the deposit is not money i've saved myself. My parents are happy to put into writing that they don't expect part entitlement to the property or any form of fixed repayment in return if needed.

that should keep the mortgage company happy. Good luck!

 

[BantamMenace]

Evening all,

The good news is i've had an offer accepted (i ended up agreeing to the asking price after two failed offers), I've engaged a solicitor (a proper one, not an online conveyancing house) and i'm sitting down with the bank tomorrow to submit my mortgage application.

I have an issue however, the solicitor has requested proof of funds for the deposit going back three months but the money was only in my account on Monday morning as a gift from my father and the money was only received by him just under 2 months ago as part of an inheritance. Does this mean I need to show my bank statement, his bank statements going back to receiving the funds and some form of receipt he will have got upon the depositing of the cash within his bank account? I'm not sure the latter such thing even exists, I've never received an inheritance before.

Is anybody able to shed some light on what proof I will require. After sitting down with the bank tomorrow I shall explain this predicament in an email to my solicitor.

 

[Dai Corner]

Evening all,

The good news is i've had an offer accepted (i ended up agreeing to the asking price after two failed offers), I've engaged a solicitor (a proper one, not an online conveyancing house) and i'm sitting down with the bank tomorrow to submit my mortgage application.

I have an issue however, the solicitor has requested proof of funds for the deposit going back three months but the money was only in my account on Monday morning as a gift from my father and the money was only received by him just under 2 months ago as part of an inheritance. Does this mean I need to show my bank statement, his bank statements going back to receiving the funds and some form of receipt he will have got upon the depositing of the cash within his bank account? I'm not sure the latter such thing even exists, I've never received an inheritance before.

Is anybody able to shed some light on what proof I will require. After sitting down with the bank tomorrow I shall explain this predicament in an email to my solicitor.

Congratulations on having your offer accepted.

Under the anti money laundering regulations your solicitor has to satisfy himself that the money is not proceeds from criminal activity. He may need to go back far enough to see where your father's inheritance came from i.e. bank accounts of the deceased, sale of assets, life assurance payout etc.

 

[DarloRich]

I have an issue however, the solicitor has requested proof of funds for the deposit going back three months but the money was only in my account on Monday morning as a gift from my father and the money was only received by him just under 2 months ago as part of an inheritance. Does this mean I need to show my bank statement, his bank statements going back to receiving the funds and some form of receipt he will have got upon the depositing of the cash within his bank account? I'm not sure the latter such thing even exists, I've never received an inheritance before.

you will be ok as long as you can show the paper trail - as Dai Corner says it is part of the anti money laundering checks your solicitor needs to undertake. For many years they were seen as a soft touch with pretend property purchases an ideal way to clean up some dirty cash.

 

[BantamMenace]

Congratulations on having your offer accepted.

Under the anti money laundering regulations your solicitor has to satisfy himself that the money is not proceeds from criminal activity. He may need to go back far enough to see where your father's inheritance came from i.e. bank accounts of the deceased, sale of assets, life assurance payout etc.

you will be ok as long as you can show the paper trail - as Dai Corner says it is part of the anti money laundering checks your solicitor needs to undertake. For many years they were seen as a soft touch with pretend property purchases an ideal way to clean up some dirty cash.

Thanks both, do either of you know what documentation is provided upon the settling of an estate and the payment on of inheritance?

 

[DarloRich]

Thanks both, do either of you know what documentation is provided upon the settling of an estate and the payment on of inheritance?

there should be a Grant of Probate or Letters of Administration. Your father should be able to point you in the right direction if required.

 

[Dai Corner]

there should be a Grant of Probate or Letters of Administration. Your father should be able to point you in the right direction if required.

That's right. I had to go through the process of obtaining probate when I acted as an executor. It was about 25 years ago so I can't remember all the details I'm afraid. If your father is the executor for the estate he inherited from he will have everything your solicitor could possibly want I'm sure.

When I later inherited from a different estate I just got a letter from the solicitor dealing and a cheque. If that's what your father has that may be sufficient.

 

[Tom B]

Consider the transport links. Not just roads but rail station and bus routes.

... Including your plan B, C etc if your usual route is closed for engineering or suspended etc!