Viewing / Buying a house

[Genie]

Realistically the industry will slow down towards the end of January as the likelihood of completion by end of March diminishes.

By end of March the industry will have already survived it or be well into a slump.

Best case for the government is that a vaccine is being rolled out and the economy is having a big bounce back which props up property values.

[Demitri_C]

So guess what...we didnt exchange im furious as we have been getting nothing but pressure from the sellers their developers and their estate agent.

I transferred the deposit to my solicitor and did buildings insurance paid for. Then the afternoon she calls me to say they are not ready to exchange!!!! The reason is because the valuer for the bank needs to do a second inspection once the property is ready the new build before the bank releases the money. She reckons the devloper cant make the completion date of the 4th dec.

Anyone ever had this? Its really pissed me off as ive paid to insure a house that isnt even legally mine

[Genie]

10 minutes ago, Demitri_C said:

The reason is because the valuer for the bank needs to do a second inspection once the property is ready the new build before the bank releases the money. She reckons the devloper cant make the completion date of the 4th dec.

Anyone ever had this? Its really pissed me off as ive paid to insure a house that isnt even legally mine

We’re  going to see a lot of this. The market is artificially inflated and will fall back. There’s a nervousness with lenders lending on the prices that have been agreed the last few months.

I mentioned a while ago that the house builder on the estate I live on immediately added the stamp duty saving to their sale prices when it was announced.

I predict a lot of chains are going to collapse. It could get quite messy.

Just or add my MIL lost 1 sale a couple of months ago because she negotiated the price up for the buyers lender to say it was too expensive and they pulled out.

Edited November 15, 2020 by Genie

[Demitri_C]

3 minutes ago, Genie said:

We’re  going to see a lot of this. The market is artificially inflated and will fall back. There’s a nervousness with lenders lending on the prices that have been agreed the last few months.

I mentioned a while ago that the house builder on the estate I live on immediately added the stamp duty saving to their sale prices when it was announced.

I predict a lot of chains are going to collapse. It could get quite messy.

Its really really annoying. Why they didnt know this information before pressuring us to exchange i will never know.

How long can this sutuation drag out for because im not willing to wait any longer if they cant do 4th dec as this has been dragging on for close to 6 months and i am getting fed up.

I want to tell them either we exchange by friday or im pulling out.

 

[Genie]

1 minute ago, Demitri_C said:

Its really really annoying. Why they didnt know this information before pressuring us to exchange i will never know.

How long can this sutuation drag out for because im not willing to wait any longer if they cant do 4th dec as this has been dragging on for close to 6 months and i am getting fed up.

I want to tell them either we exchange by friday or im pulling out.

 

The solicitors are truly awful in my experience. They just bullshit to get you to go away. We had several false starts with our purchase in 2018. Kept getting told it’s ready, then there’s something missing, then ready again, then another issue. We’re conditioned to think that solicitors are important and serious people but they are a waste of space. Usually they employ just 1 degree qualified conveyancer and the rest of the office are minimum wage kids doing the chasing.

[darrenm]

44 minutes ago, Genie said:

I predict a lot of chains are going to collapse. It could get quite messy

Absolutely this. February and March are going to be horrific with chains collapsing everywhere because of one person pulling out and then there will be houses available at bargain prices for quick completion to attempt to keep chains going, which will then push prices down and cause the whole market to become extremely volatile then finally finished off by nothing happening for 6 months after March.

Which is why I think if anyone from government looks at that they will want to push the deadline back, using the 2nd lockdown as a good enough reason. Then they will aware that simply pushing it back will cause the same problems further down the line so will look to phase stamp duty back in. I'm sure it'll be fluffed up in the standard way by no-one taking responsibility or thinking about it until a few weeks before so I expect a late announcement.

[Demitri_C]

1 hour ago, Genie said:

The solicitors are truly awful in my experience. They just bullshit to get you to go away. We had several false starts with our purchase in 2018. Kept getting told it’s ready, then there’s something missing, then ready again, then another issue. We’re conditioned to think that solicitors are important and serious people but they are a waste of space. Usually they employ just 1 degree qualified conveyancer and the rest of the office are minimum wage kids doing the chasing.

Thankfully my solictor is very good. She texts me even on weekends when she isnt in to updatw me if she hasnt heard anything on the friday or hasnt replied to me. 

But the sellers sounds shockingly bad. How they didnt know this vital info before is beyond me

[Genie]

2 hours ago, Demitri_C said:

But the sellers sounds shockingly bad. How they didnt know this vital info before is beyond me

It must be a blag, they say they want to exchange on a given day to get everyone else to hurry up even if they can’t make that date. It means when they are finally ready they are less likely to be let down by someone else.

[Rds1983]

3 hours ago, darrenm said:

Absolutely this. February and March are going to be horrific with chains collapsing everywhere because of one person pulling out and then there will be houses available at bargain prices for quick completion to attempt to keep chains going, which will then push prices down and cause the whole market to become extremely volatile then finally finished off by nothing happening for 6 months after March.

Which is why I think if anyone from government looks at that they will want to push the deadline back, using the 2nd lockdown as a good enough reason. Then they will aware that simply pushing it back will cause the same problems further down the line so will look to phase stamp duty back in. I'm sure it'll be fluffed up in the standard way by no-one taking responsibility or thinking about it until a few weeks before so I expect a late announcement.

So many of the houses we've looked at recently have sold for over the asking price, there's going to be a backlash when mortgage valuations don't match up, ppl lose jobs or just can't complete by end of March. 

We were literally driving to a viewing when we were told the house had sold for 25k over asking and saw another one listed at 400k that sold for 475k. I'll be very surprised if that one doesn't collapse as they'll have to find 50-75k from somewhere. 

[Genie]

3 minutes ago, Rds1983 said:

So many of the houses we've looked at recently have sold for over the asking price, there's going to be a backlash when mortgage valuations don't match up, ppl lose jobs or just can't complete by end of March. 

We were literally driving to a viewing when we were told the house had sold for 25k over asking and saw another one listed at 400k that sold for 475k. I'll be very surprised if that one doesn't collapse as they'll have to find 50-75k from somewhere. 

It’s madness how people get sucked into the hysteria of paying over the odds to save a fraction of that amount in stamp duty.

[Rds1983]

2 minutes ago, Genie said:

It’s madness how people get sucked into the hysteria of paying over the odds to save a fraction of that amount in stamp duty.

I think it's also being fueled by people being desperate to move because they've been stuck at home due to Covid. Speaking to estate agents there's a lot of people realising that they can work from home and subsequently selling up in London or other cities with large budgets and moving more rural. I'm guessing these people are happy to pay over the odds to make sure they get a dream house, whether they're still happy in that rural house a few years down the line will be interesting. 

[darrenm]

33 minutes ago, Rds1983 said:

So many of the houses we've looked at recently have sold for over the asking price, there's going to be a backlash when mortgage valuations don't match up, ppl lose jobs or just can't complete by end of March. 

We were literally driving to a viewing when we were told the house had sold for 25k over asking and saw another one listed at 400k that sold for 475k. I'll be very surprised if that one doesn't collapse as they'll have to find 50-75k from somewhere. 

Ours sold a week ago for £13500 more than the asking price.

[Genie]

2 minutes ago, darrenm said:

Ours sold a week ago for £13500 more than the asking price.

Wow, fingers crossed the buyers lender doesn’t refuse to lend on it at that price. 

[darrenm]

29 minutes ago, Genie said:

It’s madness how people get sucked into the hysteria of paying over the odds to save a fraction of that amount in stamp duty.

We're in the process of moving and the differential value between our sale price and purchase price is about the same as it would be any other time. We've sold and bought over the odds but saved a few grand in stamp duty. We were thinking of moving anyway.

[Genie]

25 minutes ago, Rds1983 said:

I think it's also being fueled by people being desperate to move because they've been stuck at home due to Covid. Speaking to estate agents there's a lot of people realising that they can work from home and subsequently selling up in London or other cities with large budgets and moving more rural. I'm guessing these people are happy to pay over the odds to make sure they get a dream house, whether they're still happy in that rural house a few years down the line will be interesting. 

True, also I expect people staying in the same area but wanting a spare room / study to work in. 

[darrenm]

Just now, Genie said:

Wow, fingers crossed the buyers lender doesn’t refuse to lend on it at that price. 

We're the only people with a mortgage in the chain and ours has been accepted.

[Genie]

I had a good chat with the surveyor who came to mine last week. He was saying it’s very hard to justify the prices at the moment because they have to put 3 comparable sales in the report but then also consider the impact of the stamp duty holiday and help to buy schemes are going to have. There’s also furlough due to end in March, what a cocktail!

This market has got red flags galore at the moment. The lenders who got burned with a lot of bad debt on 2008 might tighten right up over the next 3-6 months. It’s alright people saying “it’s over the odds, never mind” but it could be a disaster if big businesses offload more staff in the new year. 

[Xela]

14 hours ago, Stevo985 said:

But... saw a different house on Thursday. I absolutely loved it. The OH wasn't as keen but I think she'll come round. I think it's more that she had her heart set on the other house. Personally I think this new one is nicer. Plus the people in it have no chain and are eager to sell, and the house needs very very little work doing so it'll end up being far cheaper.

Going back to see it a second time tomorrow. 

Nice! 

Still over Lichfield way? 

[Xela]

1 hour ago, Rds1983 said:

So many of the houses we've looked at recently have sold for over the asking price, there's going to be a backlash when mortgage valuations don't match up, ppl lose jobs or just can't complete by end of March. 

We were literally driving to a viewing when we were told the house had sold for 25k over asking and saw another one listed at 400k that sold for 475k. I'll be very surprised if that one doesn't collapse as they'll have to find 50-75k from somewhere. 

That's crazy! What part of the UK is it? 

 

1 hour ago, Genie said:

It’s madness how people get sucked into the hysteria of paying over the odds to save a fraction of that amount in stamp duty.

It is madness. People see saving £10k upfront as being better than paying an extra £100-200 per month on a mortgage over the next 30 years. 

I'd like to move but in no rush. I'll just keep my powder dry until the madness abates. 

[mikeyp102]

5 hours ago, Demitri_C said:

So guess what...we didnt exchange im furious as we have been getting nothing but pressure from the sellers their developers and their estate agent.

I transferred the deposit to my solicitor and did buildings insurance paid for. Then the afternoon she calls me to say they are not ready to exchange!!!! The reason is because the valuer for the bank needs to do a second inspection once the property is ready the new build before the bank releases the money. She reckons the devloper cant make the completion date of the 4th dec.

Anyone ever had this? Its really pissed me off as ive paid to insure a house that isnt even legally mine

I don’t know about the house, but the insurance matter. You no longer  have an insurance interest in the property (as not owning it yet). Call the insurer, they should either terminate the contract or delay the start date.

Edited November 15, 2020 by mikeyp102