How to Guide: Dealing with Solicitors and ensuring your Property Purchase is dealt with in a timely manner

Over the years we have discussed putting in the ground work to ensure that your credit is up to par and you have the right processes in place to save more than you spend.

We then went on to discuss the Mortgage Application process, affordability and the difference between a Mortgage Broker and going straight to a High Street Bank.

In the midst of the above we discussed the valuation process, covenants and the enemy of progress that is known as Japanese knot weed.

We’ve briefly touched on making an Offer on a property and ways in which you can justify offering 5 to 10 thousand pounds less than the asking price.

Today we are going to focus on the last leg of the property acquisition process – Solicitors!

It is so easy to get tangled up in a tumbleweed of legal jargon and be scared away by the legal process, but it is quite simple, especially with Residential purchases.

Below are my top 3 tips to dealing with solicitors and ensuring your case is dealt with in a timely manner.

  1. Fill out all questionnaires and property packs following the instructions of your solicitors to a T. If it says to use block capitals and black ink, do it! If for whatever reason the solicitors forget to do something later on down the line, they can turn that delay back around on you and claim that they were waiting for “correctly filled out forms”.

2. Reply to all emails in a timely manner responding to ALL questions. If you need to do a little bit of research, do it. Don’t reply to an email in parts. Respond answering all questions in one go. Be very specific and over share if you think any detail will help. Delays often occur when solicitors have a response to question 1 & 3, but are waiting for a response to question 2. This may come weeks later and get lost within the email thread.

3. Searches. These need to be done promptly as some can take up to 6 weeks to come back. Some solicitors require some sort of payment before carrying out any searches as these are non-refundable and will need to be paid for whether the transaction goes ahead or not. Pay the fee and get the ball rolling from day 1.

There are so many other details we can dive in to, but the top 3 have sometimes been the difference between someone completing on their purchase in 7 weeks and someone completing in 7 months.

Mortgage Payment Holidays: What happens after the 3 months are up…

Mortgage Payment Holidays – You do not get to miss 3 months worth of Mortgage Payments and then continue with your usual payments there after. 

The Mortgage payments that you miss during the holiday period are added to the overall balance of your Mortgage. 

Once the holiday period is over, your new monthly Mortgage payments are higher as your Mortgage balance would have increased due to the 3 months of missed payments being added. 

Your new monthly payments will increase by £10 – £100 or so. This is dependent on your current monthly payment amounts, current interest rate and overall outstanding mortgage balance. 

Find out the facts. Know how much your monthly payments will increase by before committing to a Mortgage payment Holiday… 

The 3 month break is great, especially if you’ve lost your job, have been placed on furlough or are going through financial difficulty, however once that time has passed, your monthly outgoings will increase and won’t be what they once were. 

Some people have panicked and taken a Mortgage holiday because the option is there, it was all over the news and they thought, “why not?”. However in 3 months time, these people will be less pleased when their monthly payments increase by £80 and disrupt their monthly outgoings. 

During the holiday period, save as much as you can so that you are prepared for any further rainy days.

Alternatively, if you can, plough on, cut back a little and avoid the payment holiday all together.