Advice on buying our first house

[danyeates]

Hi,

This evening we looked round a perfect house. It's just what we want. Lots of outdoor space, two garages, big driveway (which extends behind the house past a big gate) and a huge timber summer house/workshop, measuring 4.5m x 2.5m! The house is nice too!

It's a little above our budget (by 10%) and it's only been on the market for two weeks (according to Property Bee). He's owned it from new, it's a 1967 house and he's moving into a house he's inherited. He's really looked after the house, the new garage and other enhancements have been done to a very high standard.

So far we've just looked round it the once, but after looking at loads of other houses, nothing else compares. So where do we go from here and what advice can you offer us property newbies? We currently rent a house from family so moving/giving notice out isn't a problem. We have a 15% deposit and earning a decent wage with no debt, so hoping we're in a good position to go ahead, no chain etc. To give you an idea, the property is 4.5x our joint income.

We plan to speak to a mortgage advisor tomorrow to get some prices and maybe try to get a mortgage accepted in principle.

What else can you tell me please?!

Thanks a lot,

Dan

[zaphod42]

Allow 1300 for conveyancing.
Choose the cheapest survey that the mortgage company mandates, employ your own private survey to derisk - it should pay for itself in reductions.
Ensure that you are offering subject to survey.


For 100 quid you should get a drains survey done (CCTV) as they can be costly fixes.
Mortgage can be quick, but shop around. Advisors can be good, but read up. Your bank might give you a surprisingly good rate at the moment. Check for overpayment terms, etc.
Chain free, allow 6-8wks min

don't rush.... It's a big move!



Good luck!

[Wings]

zaphod42 said:

Allow 1300 for conveyancing.
Choose the cheapest survey that the mortgage company mandates, employ your own private survey to derisk - it should pay for itself in reductions.
Ensure that you are offering subject to survey.


For 100 quid you should get a drains survey done (CCTV) as they can be costly fixes.
Mortgage can be quick, but shop around. Advisors can be good, but read up. Your bank might give you a surprisingly good rate at the moment. Check for overpayment terms, etc.
Chain free, allow 6-8wks min

don't rush.... It's a big move!



Good luck!

Agree, and would add carry out a further viewing, check all works have either had planning approval or/and building regs, with works carried out by qualified contractor

[Dogwatch]

Probably wasting my time by the sound of it but often worth wandering round the district looking for potential 'flies in the ointment'.
- schools are out at the moment so traffic patterns are abnormal. Any potential for morning or afternoon traffic chaos when the schools return (and the parents go back to work)?
- noisy neighbours? - even church bells can wind some people up.
- overflights from airport when the wind is in a particular direction?

What really bugs some people doesn't bother others but once you've been handed the keys it's too late!

[danyeates]

Dogwatch said:

Probably wasting my time by the sound of it but often worth wandering round the district looking for potential 'flies in the ointment'.
- schools are out at the moment so traffic patterns are abnormal. Any potential for morning or afternoon traffic chaos when the schools return (and the parents go back to work)?
- noisy neighbours? - even church bells can wind some people up.
- overflights from airport when the wind is in a particular direction?

What really bugs some people doesn't bother others but once you've been handed the keys it's too late!

Thanks for your input, it's less than a mile from our current house so we know the area well. It's nicer than the housing estate we're currently on. We currently drive past the house to get to work, so it's a little closer to work!

[danyeates]

Wings said:

Agree, and would add carry out a further viewing, check all works have either had planning approval or/and building regs, with works carried out by qualified contractor

Thanks. We did have a very long chat with the owner of the house as we got there 20 minutes before the estate agent. He told us all the work he'd had carried out and by who. He said it's all had the required permissions and regs adhered to. I'll ensure I check the relevant certificates etc. The boiler was installed 5 years ago and has a service plan still in operation. He said he'll have it serviced prior to sale. He also said he's having all the external facia boards and front of the house repainted professionally, so it should all look nice and fresh again. He's currently got the gutters off ready.

His workshop was amazing! Full of industrial lathes, band saws, pillar drills etc. Shame he's taking it all with him! All the electrics in the garage and workshop are all on circuit breaker sockets and all the wiring is enclosed in black trunking and is perfectly neat. The garage and workshop certainly look very well made. The wooden summer house/workshop is all insulated and lined too.

[danyeates]

zaphod42 said:

Allow 1300 for conveyancing.
Choose the cheapest survey that the mortgage company mandates, employ your own private survey to derisk - it should pay for itself in reductions.
Ensure that you are offering subject to survey.


For 100 quid you should get a drains survey done (CCTV) as they can be costly fixes.
Mortgage can be quick, but shop around. Advisors can be good, but read up. Your bank might give you a surprisingly good rate at the moment. Check for overpayment terms, etc.
Chain free, allow 6-8wks min

don't rush.... It's a big move!



Good luck!

Thanks.

Certainly in no rush. The longer it takes, the more money we can save! Interesting regarding surveys, so get two surveys.

[danyeates]

Also, as it has two garages, one fairly recent and attached to the house, and the other original and in a block, we may decide to rent one out (the one in the block). I will probably just list this locally in the paper, but I expect to get around £75-85 a month for it which should help towards the mortgage.

[zaphod42]

danyeates said:

Thanks.

Certainly in no rush. The longer it takes, the more money we can save! Interesting regarding surveys, so get two surveys.

Sort of. The bank survey will be from their company to satisfy their criteria - i.e. can they sell it to realise the value of their loan (price - 15%) and nothing else. Many modern house only are given a drive by or very light survey. Choose the cheapest the bank will allow, typically around £300

Eitehr way the bank survey doesn't do what you need it to - to highlight the areas of weakness and risk that will allow you get things rectified ahead of completion, or to negotiate the final price...
A good surveyor will for a structural survey will be £700-£800 inc VAT for a 3-4hr prod of the house. You can also brief him on any areas that are of concern.

Be aware that many surveys, to us non-surveyors will imply the house is about to fall down; the trick seems to be in the language - MUST be done / SHOULD be done / CONSIDER, etc. All surveyors will also then say "a specialist roofer/plumber/electrician should be appointed to gain estimates, research more etc) to cover themselves.

Most surveys do pay for themselves though. Ask you letting agent for a their approved tradesmen - you might find they are ok - at least for a quote.

Other tips: set up a file now. Copy every email to the file (just in case). I've found word of mouth very useful, but have avoided the Estate Agents own mortgage advisor and surveyor - too many referral fees.

Read up on Chancel insurance and make your own decision.

Good searches will bring back local planning, etc on quite a wide area along with flood, crime, etc, but you can have some fun doing many of these as well.

Think through inventory and things you would like left (or negotiated on being left)

Find a good solicitor; personally I'd find a local family firm rather than one of these big bank owned/lawyer own factories that do conveyancing. You might pay 10-20% more but can be easier to chase, and they take more of an interest.

Be prepared for paperwork.

As a guide my mortgage took 6 working days from offer in principle, bank survey to full offer - they really aren't busy at the moment! Your mileage may vary...

[MikeyT]

Sounds nice. It's over your budget though so can you afford it or was your budget too low (be honest)

Any pics of the garage?

[hornetrider]

You say 15% deposit but have you included expenses and moving costs (fees, stamp duty etc) in that? Or are you closer to 10%? Will lenders lend 4.5 times joint income with only 10% deposit?

[danyeates]

hornetrider said:

You say 15% deposit but have you included expenses and moving costs (fees, stamp duty etc) in that? Or are you closer to 10%? Will lenders lend 4.5 times joint income with only 10% deposit?

We should be ok to fund a 15% deposit, including fees and solicitors costs etc. There will be no stamp duty as we're a first time buyer buying a property less than £250,000.

The house is up for £230,000, subject to talking to a mortgage advisor, we think our max is going to be c. £210,000.

We have around £33,000 saved to cover the deposit and fees, but each week we're adding to this. I've just redone the sums, the loan will be just under 4x our joint income.

Edited by danyeates on Wednesday 3rd August 08:48

[danyeates]

zaphod42 said:

Sort of. The bank survey will be from their company to satisfy their criteria - i.e. can they sell it to realise the value of their loan (price - 15%) and nothing else. Many modern house only are given a drive by or very light survey. Choose the cheapest the bank will allow, typically around £300

Eitehr way the bank survey doesn't do what you need it to - to highlight the areas of weakness and risk that will allow you get things rectified ahead of completion, or to negotiate the final price...
A good surveyor will for a structural survey will be £700-£800 inc VAT for a 3-4hr prod of the house. You can also brief him on any areas that are of concern.

Be aware that many surveys, to us non-surveyors will imply the house is about to fall down; the trick seems to be in the language - MUST be done / SHOULD be done / CONSIDER, etc. All surveyors will also then say "a specialist roofer/plumber/electrician should be appointed to gain estimates, research more etc) to cover themselves.

Most surveys do pay for themselves though. Ask you letting agent for a their approved tradesmen - you might find they are ok - at least for a quote.

Other tips: set up a file now. Copy every email to the file (just in case). I've found word of mouth very useful, but have avoided the Estate Agents own mortgage advisor and surveyor - too many referral fees.

Read up on Chancel insurance and make your own decision.

Good searches will bring back local planning, etc on quite a wide area along with flood, crime, etc, but you can have some fun doing many of these as well.

Think through inventory and things you would like left (or negotiated on being left)

Find a good solicitor; personally I'd find a local family firm rather than one of these big bank owned/lawyer own factories that do conveyancing. You might pay 10-20% more but can be easier to chase, and they take more of an interest.

Be prepared for paperwork.

As a guide my mortgage took 6 working days from offer in principle, bank survey to full offer - they really aren't busy at the moment! Your mileage may vary...

Thank you for this. Very useful and interesting.

[danyeates]

MikeyT said:

Sounds nice. It's over your budget though so can you afford it or was your budget too low (be honest)

Any pics of the garage?

See my post above. No photos of the garage, but it has a 20x10' extra high garage attached to the house (for his Landrover Defender) and another usual garage in a block opposite.

[louiebaby]

My only advice after doing it a couple of years ago is "Keep your chin up."

I hate all the paperwork and to-ing and fro-ing that goes with buying a house, and all the jumping through hoops you need to do. Ours was more of a ball ache because we were doing 90% LTV when no-one was lending to anyone.

It took us a couple of months of rubbish, but we have a nice place now, and since the market has rebounded a bit, we're in profit, and currently re-mortgaging on 75% LTV.

You'll get pissed of, and wonder why you bothered, but will forget all that when you move in to YOUR house. (Or one you own 20% of and rent the rest from the bank )

[danyeates]

louiebaby said:

My only advice after doing it a couple of years ago is "Keep your chin up."

I hate all the paperwork and to-ing and fro-ing that goes with buying a house, and all the jumping through hoops you need to do. Ours was more of a ball ache because we were doing 90% LTV when no-one was lending to anyone.

It took us a couple of months of rubbish, but we have a nice place now, and since the market has rebounded a bit, we're in profit, and currently re-mortgaging on 75% LTV.

You'll get pissed of, and wonder why you bothered, but will forget all that when you move in to YOUR house. (Or one you own 20% of and rent the rest from the bank )

Thanks. Made me smile!

[danyeates]

Been to see the mortgage broker today and she's going to get a mortgage agreed in principle this afternoon for us!

Once I know there are companies out there that will lend this much to us, I will feel much more confident putting an offer in.

EDIT: She's just dropped in an agreement in principle.

Edited by danyeates on Thursday 4th August 16:14