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mortgage query

Discussion in 'benefits and housing' started by Hellsbells, Oct 26, 2017.

  1. Hellsbells

    Hellsbells World's best procrastinator

    Glad i asked on here!
     
  2. Puddy_Tat

    Puddy_Tat meh

    it seems a heck of a lot.

    although no idea if this includes any IoM equivalent of stamp duty.

    as with most things, it's worth shopping around a bit, but beware of any quotes that are much lower than the others as well.

    i don't know if conveyancers based in England can do IoM stuff - or whether they would know how / where to do whatever the heck it is conveyancers charge you a load of money for doing...
     
    muscovyduck and Hellsbells like this.
  3. seeformiles

    seeformiles Lost in the wood

    In my experience, conveyancers should be a little cheaper than solicitors as they’ve specialised in one particular area of property law and are generally used when the mortgage is straightforward with no weird stuff. The reform of the land registry in the 1920s made things a lot easier in England and Wales - however Scotland and N.Ireland have radically different systems. In the cases of such properties we would delegate the work to a particular firm of solicitors in that region. I’ve a feeling IOM is covered by the English/Welsh system though.
     
  4. Teaboy

    Teaboy It definitely looks brighter over there..

    This is a very good point. Hellsbells I've just done some googling and found this: Isle of Man Mortgages - Financial Options

    It appears that the conveyancing quote will include the IoM version of stamp duty which is £5.70 per £1000 of house, so for your £185k house that would be just over a grand. So with that in mind the quote looks a lot better, still a little on the pricey side unless it includes VAT in which case it sounds about right.

    Stamp duty and legal fees for under £3k, mine cost over £13k. At last we have found a reason to live on the Island!:)
     
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  5. Hellsbells

    Hellsbells World's best procrastinator

    Thanks Teaboy that's really useful to know. Yes the quote did include VAT. It said it was a total price covering absolutely everything. It was with these solicitors - Isle of Man Advocates - Simcocks Isle of Man Law Firm
     
  6. Teaboy

    Teaboy It definitely looks brighter over there..

    I guess if you shop around you may be able to get it a bit cheaper but an all inclusive quote does give you peace of mind. We had disbursements added and weird things turned up and we ended up shilling out a hundred quid here and a hundred quid there.

    Its still a lot of money but that's buying a house for you. You're expected to have a deposit yet be able to pay the stamp duty and legals fees on top. As I mentioned earlier those were over £13k for my one bedroom flat, crazy stuff.
     
  7. mauvais

    mauvais change has become unavoidable

    Excluding stamp duty, we're paying about £1200 inc. VAT in England.

    No idea whether this applies on the IoM as their workload must be more limited, but don't get the cheapest solicitor as regardless of their merit they will also be the busiest, and you will pay for it in terms of hassle and stress later.
     
  8. Hellsbells

    Hellsbells World's best procrastinator

    Is that in London? That's an insane price! Is it an old flat? How come so much?!
     
  9. Teaboy

    Teaboy It definitely looks brighter over there..

    No its standard. That's the cost of stamp duty, or at least was then. 2% of value up to a certain amount and then 5% over. As even a broom cupboard in London costs a mint virtually everything has a % that falls into a higher bracket. So yeah, we paid just over £12k in tax just to buy a flat.

    The system is very broken.

    It makes your £1000 tax look a bargain.
     
    Hellsbells likes this.
  10. Hellsbells

    Hellsbells World's best procrastinator

    Sorry - liked for my situation :) not yours :(
     
    Teaboy likes this.
  11. Hellsbells

    Hellsbells World's best procrastinator

    Had a call from the bank today to say our mortgage application has been accepted! :):cool:

    It took a total of 24 hours :cool:
     
  12. Teaboy

    Teaboy It definitely looks brighter over there..

    Success. :cool:

    They are pretty keen to get these mortgages out and given its a secured loan its fairly low risk for them. As long as you don't have a really shonky credit history, a conviction for financial fraud or are trying to borrow way beyond your means its pretty much a shoe-in.

    All systems go then. Is there much of a chain involved that you know of?
     
    StoneRoad likes this.
  13. Hellsbells

    Hellsbells World's best procrastinator

    The vendors have apparently made an offer on a property. But the original advert said their house would be 'vacant on completion'.
     
  14. Teaboy

    Teaboy It definitely looks brighter over there..

    Sounds like its all proceeding nicely, be prepared for a few bumps in the road ahead - seems to happy to everyone.

    The wording of the advert saying 'vacant on completion' is a bit odd, you'd kinda hope it would be really as it would be a bit awkward having to share.:p
     
    Hellsbells likes this.
  15. seeformiles

    seeformiles Lost in the wood

    This may put you on a good footing to negotiate a drop in price if things are delayed. When buying our first place we were renting and ready to go at a month’s notice but the vendors kept delaying completion owing to various personal problems. While we weren’t unsympathetic, we were stuck in our crap rented flat for 2 months more than anticipated so managed to get the cost of those 2 months’ rent knocked off the asking price. Hope things proceed smoothly for you and it doesn’t come to that. :)
     
  16. hash tag

    hash tag Pedicabo omnes

    Re: solicitors fees, be warned. Sometimes they top up the charges with each phone call (made and received) and each letter (sent and received).
    Best of luck with the purchase, hope it goes well. :thumbs:
     
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  17. Hellsbells

    Hellsbells World's best procrastinator

    Things are moving along quite fast now. Our bank are doing their valuation today & we have our advocate sorted (can't call them solicitors over here :rolleyes:)

    Some advice please as I don't want to come across completely clueless to the advocate - are we meant to arrange a face to face meeting with them? So far they've sent me their quote (which is very detailed and seems to cover everything, including VAT. They're also recommended by our estate agent). And I'm collecting our 'letter of engagement' this lunchtime. Not sure what happens next...:confused: Do we need to do anything?
     
  18. Teaboy

    Teaboy It definitely looks brighter over there..

    We never met our solicitor. Chap is based is Chester and came as a recommendation from friends who had brought in the South East so I guess they never met him either. It should be the case that everything can be done over the phone, by email and post.

    It can get a bit sluggish from now with things dragging a bit. All you can really do is keep in contact with the Estate Agent to make sure the vendor is doing everything they need to do and keep chivying your 'advocate' along if things go quiet. Around three months for the whole process is pretty typical but can be faster or longer for numerous reasons.
     
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  19. Hellsbells

    Hellsbells World's best procrastinator

    The advocate's office is literally 5 minutes from where I work though. As most things are over here :D But I'm happy not to have to take more time off work for more meetings. I'm hoping things will move fairly fast tbh. The vendors have been chasing the Agent to hurry US along, there shouldn't be any issues with the property, and the market is SO quiet here, it's not like advocates have loads of work to do. The property we're buying is literally the only decent place I've seen come on to the market since November last year.

    I hope things are sorted by the beginning of May anyway as that's when the 6 month break on our current rental contract is....
     
  20. colacubes

    colacubes Well-Known Member

    Them being close means you might be able to pop in and pick up/sign documents to speed things along, but lots of people do it without ever meeting the solicitor. With my first flat I never met the solicitors.
     
  21. seeformiles

    seeformiles Lost in the wood

    Nothing wrong with chivvying solicitors along (that was the main part of my underwriting job) and something I did with my own mortgage. If they really pull their finger out they can sort a mortgage in about 6 weeks (under ideal conditions) so a friendly shove is no bad thing.
     
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  22. hash tag

    hash tag Pedicabo omnes

    Firstly, good luck Hellsbells hope all goes well for you.
    I would have thought people would have had to see their solicitors when purchasing somewhere to provide identification/comply with money laundering regulations. I am using my conveyancing solicitors to help with my lease extension and we had to provide identification stuff yet again ( it was originals they wanted, like passports, bank statements Etc. and I don't like sending that stuff in the post).
    As for chivvying solicitors, when our purchase looked like going belly up, I called the solicitors in the chain to explain that if we didn't exchange in two weeks we would lose our purchase. i was not rude, I shouted at no one, never swore or used any form of inappropriate language. Our solicitor later called my other half telling me to stop, I couldn't do that....sometimes they really think they are god!
     
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  23. Hellsbells

    Hellsbells World's best procrastinator

    Sorry - another question. I'm so clueless with all this :rolleyes:

    So I've now got the advocate engagement letter detailing all the terms & conditions. They want a load of ID documents, our signatures & part payment before proceeding with anything. Our bank is doing a valuation on the property today. Do we wait until we've had the results of this valuation before signing anything/handing money over to the advocates? I've no idea how long the bank will take
     
  24. mauvais

    mauvais change has become unavoidable

    Depends, I suppose. What's the risk of the valuation coming back in a way that negatively impacts your ability to buy it?

    Suppose you are borrowing as much as they will lend you, and it's 90% of the property value (LTV), and the intended sale price is £100,000. Your deposit is £10,000.

    The bank come back and say it's only worth £90,000. The most they will lend you now is 90% of that, £81,000. If the seller won't come down from £100,000, you need to find an extra £9,000 in deposit, which you can't do, and you have to abandon the purchase.

    On the other hand, if you delay instructing the advocate for too long, you will slow down the whole thing and potentially irritate the seller.
     
  25. Hellsbells

    Hellsbells World's best procrastinator

    :mad: It's all very frustrating.

    I don't imagine the valuation will change from the vendors original sale price, but I guess it might. Our LTV is around 78%.

    I might call the bank tomorrow and see if they can give some kind of estimate on how long it'll take.
     
  26. mauvais

    mauvais change has become unavoidable

    It sounds like you're relatively safe in that respect. A bank valuation is just belts-and-braces stuff, a lot of it not even physically present, should be done quite quickly.
     
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  27. Hellsbells

    Hellsbells World's best procrastinator

    Would you still recommend waiting though?
     
  28. mauvais

    mauvais change has become unavoidable

    Our sequence of events in our ongoing purchase is a bit different, but I've paid my solicitor prior to the survey/valuation. We're on week 4 since our offer was accepted now, so had I not, we would be further delayed.

    The solicitor has done some early checks about potential risks and told us, for example, that we should be looking for certain specific things on the survey.
     
  29. hash tag

    hash tag Pedicabo omnes

    There is no reason for delaying in taking identification and the like into the advocates. I have no idea how property sales work on the IoM. Back here in England (not Scotland, it's different up there, you do not have to
    proceed with the purchase until you have exchanged contracts which could be weeks away, giving plenty of time iron iron out legal niggles or any issues that may arise with the property valuation.
    Please bare in mind that a property valuation is a very cursory inspection and should not normally be relied upon for giving total peace of mind. Here many buyers would opt to take a home buyers report or some sort of structural engineers report or even a specialist report if any issues are raised with the property.
    Before handing over the deposit, check with the advocates that this will not be committing you to anything just in case.
    With a LTV of 78% you are close to the old thresholds of how much someone would lend without further security, normally a mortgage indemnity guarantee. It has been a while since I have
    been out of this game and things have probably changed a bit and they may well be different over there. x
     
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  30. Supine

    Supine Rough Like Badger

    Someone told me the bank evaluation now just includes a quick look on Google maps lol. They don't even bother going to the property.
     

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