ASK ROSS: Mortgage lenders play a pivotal when you are buying and selling property. This month, Ross explains some of the ways they can influence a transaction…
Our eminent residential property expert, Ross Ward, answers your questions about moving home. If you have a query about buying or selling, email info@tayloremmet.co.uk
My offer to purchase a repossessed property has been accepted. As a bank is selling it, will this make any difference to the way the transaction progresses?
When you purchase a property that has been repossessed and is being sold by a mortgage lender, you will be given fixed dates by which contracts need to be exchanged and the matter completed.
In light of this, you will need to return all paperwork to your solicitors as a matter of urgency and ensure your financing is in place as soon as possible.
If you fail to meet the deadlines set by the bank or building society, it may look to sell the house to someone else. You should, therefore, make sure you have everything in order to allow the purchase to move forward as quickly as possible.
I had an offer accepted on a property, but it has been down valued by my mortgage company’s surveyor. How should I proceed?
Firstly, you need to establish why the property has been down valued. Is it simply due to a fall in property prices, or are there repairs needed that affect its worth?
If a drop in prices has reduced the value of the property, it will be necessary for you to contact the estate agents to inform them of the down valuation and request they approach the vendors to see if they will accept a lower offer. It is then up to the sellers to decide if they are prepared to continue with the sale.
Alternatively, if the property has been down valued because it requires some renovation, it would be appropriate for you to obtain reports detailing how much it will cost. You can then renegotiate with the vendors, via the estate agents, to either reduce the purchase price to reflect the repairs or provide an allowance to cover the necessary work.
I have agreed to the sale of my property, but I owe my mortgage company more than I am receiving from the buyers. What should I do to allow the transaction to proceed?
Inform your solicitors at the outset that you are in what we call negative equity in respect of your property.
When a completion date has been agreed in principle, your solicitors will obtain an up-to-date account from your mortgage lender detailing the amount outstanding on your loan. You will then be asked to provide the balance of the money that, together with the purchase price, will allow the mortgage to be repaid and cover the additional costs incurred when selling a property.
Make sure your solicitors have cleared funds for the correct amount in good time to enable your sale to progress. You will then be able to complete the transaction.
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