Buying a house 2012

killers1

muttley-dps wrote: »

Good thread.

Am in the middle of purchasing (FTB too). We're into 2 week extension on mortgage offer (elapsed due to issues with management company queries, Xmas, solicitor holidays etc) and bank have told us we must close by next Friday as if we have to apply again our affordability index has dropped and we wouldn't qualify for the same amount again. All going to plan sort of at the moment.

Except that our solicitor wants written proof we have loan extension. By the time this will be issued to them then our 2 weeks could have elapsed! I don't see why they need written proof when on the loan pack there is no mention of an expiry date plus the bank have verified extension is in place. I don't understand why they don't just return the loan pack given we've signed it rather than sitting on their hands. There could be a heated conversation with solicitor this evening if I get no satisfaction on them sending in the pack.

Will also qualify for Tax relief but as I'm a cross border worker (work in Derry, live in Donegal) am sure i'm going to have to jump through hoops of tax returns for last 5 years i've been doing this work to prove income. There is a reciprocal tax treaty in place with the UK where I pay my dues to HMRC and don't actually owe anything in the republic but the onus is on me to still fill in tax returns seemingly because I'm resident in the state. So if I want TRS then imagine this is the pain to go through next.

Have you signed contracts for the purchase? If you're loan offer has expired (but you're in the middle of extension period) tell your solicitor to ring the banks completions dept who will be able to confirm that they can still draw down funds up to next Friday, which should satisfy them. Obviously you have an extension if the funds arrive!. If everything is in place from your side and the solicitor is just waiting on the vendors side to get everything organised for closing but binding contracts are in place then just tell your solicitor to drawdown the money before next Friday and hold onto it until other side are ready to close (presuming contracts have been signed by both parties).

In relation to your TRS application do you have an Irish PPS number? If so, then I would suggest just applying online once your mortgage has issued. TRS is a relief on your mortgage interest and has nothing to do with your employment details. Having a PPSN & and paying interest on a mortgage in Rep of Ireland is the pre-requisite...

muttley-dps

Cheers Killers!

We did sign contracts on Wednesday evening and I agree that we should be pursuing getting the funds as a matter of priority and doing exactly as you suggest.

I didn't realise that about the Tax relief. Anything to do with that taxman where you are requesting monies in my experience has been complex. Paying them money is the easiest thing in the world though! I do have an irish PPS though so will be applying once all things are sorted and we've closed.

killers1

muttley-dps wrote: »

Cheers Killers!

We did sign contracts on Wednesday evening and I agree that we should be pursuing getting the funds as a matter of priority and doing exactly as you suggest.

I didn't realise that about the Tax relief. Anything to do with that taxman where you are requesting monies in my experience has been complex. Paying them money is the easiest thing in the world though! I do have an irish PPS though so will be applying once all things are sorted and we've closed.

I can see where your solicitor is coming from in so far as if you have just signed contracts they are reluctant to return them to the vendors solicitor as you are then binded by them and your solicitor is worried that if they then go to request the funds from your bank to be told the offer has expired and you no longer qualify....Did you deal with the bank directly or with a broker? I'd suggest contacting whoever you dealt with and ask them to fax your solicitor confirmation that the offer has been extended. Your solicitor would really need to be returning everything to the bank today/monday at the latest in order for it to be checked off and works it's way through the queues for funds to issue by next Friday. You are taking a calculated risk in so far as if you only signed contracts on Wed the vendor probably hasn't signed them yet. Worst case scenario you instruct your solicitor to draw down the funds now and if the purchase doesn't happen then return the money to the bank and you'll need to cover the interest for the length of time it was with your solicitor. On the other side of the coin there was no point in your solicitor allowing you to sign contracts if they couldn't be organised enough to drawdown by Friday as they know that should you need to reapply you won't get the finance you need. Put the pressure on!!

With the TRS, just apply online and see what happens... I think it'll be fine though.

blueturnip

killers1 wrote: »

AIP - The bank give you an approval in principle and you are free to start bidding on properties. Once you have an offer accepted you pay your booking deposit to the estate agent and give them your solicitors details so the vendors solicitor can arrange for the contracts to be sent to your solicitor.
....

Hi Killers, I have a quick question if you don't mind! How much is the booking deposit that you need to give? Is this the 10% of the house value? e.g. if I am looking at a house for 200,000 and I have a deposit of 20,000, is this what is paid as the booking deposit?

How is this normally paid to the estate agent?

Thanks!

Man007

blueturnip wrote: »

Hi Killers, I have a quick question if you don't mind! How much is the booking deposit that you need to give? Is this the 10% of the house value? e.g. if I am looking at a house for 200,000 and I have a deposit of 20,000, is this what is paid as the booking deposit?

How is this normally paid to the estate agent?

Thanks!

Our booking deposit was €10k and I think it's a set amount no matter the value of the house it is to secure the booking and is fully refundable until contracts are signed.

It is paid via cheque made out to the agent and not the vendor

NIMAN

@ Muttley

I don't think tax returns are necessary for you.

I also live in Donegal since 2000 and work in NI, and have never had to do a tax return.

DMG1983

Verte11 wrote: »

Hi there,
I thought I'd set up a thread so that anyone who is buying a house this year or has done so recently enough could share information.
I'll start it off with a question. Once my mortgage goes through I'll be applying for interest relief as I'm a first time buyer. Has anyone gone through the process of doing this online? You can't apply until after your first mortgage payment has gone through. Just wondering what info they need and if there's anything I could get sorted now in advance.
Even if you can't answer my question just let me know if you're interested in joining this little group of 2012 buyers.

Hey great idea for a thread!! I was on the phone to the bank today to get the ball rolling with my mortgage application I am very excited:D
As I am at the very start of the process it's great (and scary!!) to have some idea of what's ahead of me...
Do people think a fixed term mortgage is the best option to go for??
How much are people paying for solicitors fees? I have heard that some have fixed rates and others charge whatever they want, I want a rough idea so I can budget for it!!
Killers your a star for sharing all your knowledge it is greatly appreciated;)

killers1

blueturnip wrote: »

Hi Killers, I have a quick question if you don't mind! How much is the booking deposit that you need to give? Is this the 10% of the house value? e.g. if I am looking at a house for 200,000 and I have a deposit of 20,000, is this what is paid as the booking deposit?

How is this normally paid to the estate agent?

Thanks!

hi blueturnip,

The booking deposit is not dependent on the purchase price and is not a set amount. Generally it can be anywhere between 3k to 10k. The booking deposit is fully refundable and is paid by cheque/bank draft made payable to the estate agent. The estate agent will tell you how much of a booking deposit it required. By paying the booking deposit the estate agent marks the property as Sale Agreed on their website and doesn't show the property to any other prospective buyers. On signing of your contracts you generally pay the balance of 10% of the purchase price. So for example you are buying a house for €200,000. You pay the estate agent a €6k booking deposit. When you go to sign your contracts you need to have paid 10% so that would be €20k less the €6k (paid to EA) so you would get a bank draft for €14k payable to the Vendors solicitor (your solicitor will tell you who that is). The only exception to a 10% deposit being paid in total on signing the contracts is where you are borrowing 92% of the purchase price. In this case your solicitor will contact the Vendors solicitor to see if they will accept a deposit of 8% in total (including booking deposit paid) on signing the contracts as opposed to 10% seeing as the mortgage is making up the balance i.e 92%. 99 times out of 100 the vendors solicitor will be happy to agree to this.... hope this clarifies!

killers1

DMG1983 wrote: »

Hey great idea for a thread!! I was on the phone to the bank today to get the ball rolling with my mortgage application I am very excited:D
As I am at the very start of the process it's great (and scary!!) to have some idea of what's ahead of me...
Do people think a fixed term mortgage is the best option to go for??
How much are people paying for solicitors fees? I have heard that some have fixed rates and others charge whatever they want, I want a rough idea so I can budget for it!!
Killers your a star for sharing all your knowledge it is greatly appreciated;)

No problem at all. A couple of things for you to think about re fixed V variable rates. Do not think that you (or I) pick a fixed or variable rate because we are economic geniuses and we know what is going to happen to rates over the coming years. By opting for a fixed rate you are buying peace of mind - that's all. Fixed rates are generally more expensive than variable rates because you pay a premium for the peace of mind that goes with them. If knowing exactly what your repayment will be for X number of years is important to you & you are comfortable with the repayments than fixed may be the way to go. If on the other hand you can afford some flexibility in your repayments i.e if it goes up by €50.00, €100, €150 etc would that really be an issue to your finances and could you live with those changes. Remember you start paying the higher fixed rate from day 1 whereas the variable is something that may or may not change during the period. There is no right or wrong answer as to which one you should opt for but the mindset needs to be that you are buying peace of mind and are willing to pay a higher rate than the current variable repayment for this peace of mind. Because there is no right or wrong answer I can't tell you what to do but I can tell you that I personally will never fix my mortgage repayment and don't mind the odd fluctuation. I don't think the premium you pay for current fixed rates is value for money as the gap between the variable & fixed rates is too large - but again that's just my personal opinion (not a professional one!). The simple question for you is 'how important is it that your repayment doesn't change at all for a set length of time and are you happy to pay for that privilege?' The debate as to whether you should have gone fixed or variable is only answerable at the end of the fixed term when you can compare what has happened to the variable rates during that time. Only then can you know if you 'won!'

killers1

meant to say you shouldn't be paying more than €1,600 (all in) for a good solicitor.... When comparing quotes from solicitors the thing to look out for is their 'Professional Fee' as the outlays will be the same irrespective of the solicitor you use. Always get a breakdown of any quotes you get so that you can accurately compare them. Remember though cheapest isn't always the best and always use a solicitor that has been recommended to you or someone you know has used them before. Some people think all a solicitor does is sign a few forms (and there is a certain amount of truth to this) but a bad solicitor could result in big problems further down the road..

NIMAN

I also think a few hundred for a structural survey (if its a 2nd hand house) is worth it too.

blueturnip

Thanks Killers and Man007, that certainly clarifies the issue for me! I'm sure I will have more questions as the process moves along!

killers1

NIMAN wrote: »

I also think a few hundred for a structural survey (if its a 2nd hand house) is worth it too.

ALWAYS GET A SURVEY DONE! irrespective or new or second hand or homebond or any other sort of guarantee... There can be problems further down the road on a new build if the developer goes bust and fails to keep up the homebond indemnity... You are spending a couple of hundred grand... a €300 survey is not going to break the bank...

Citygirl1

killers1 wrote: »

hi blueturnip,

The booking deposit is not dependent on the purchase price and is not a set amount. Generally it can be anywhere between 3k to 10k. The booking deposit is fully refundable and is paid by cheque/bank draft made payable to the estate agent. The estate agent will tell you how much of a booking deposit it required. By paying the booking deposit the estate agent marks the property as Sale Agreed on their website and doesn't show the property to any other prospective buyers. On signing of your contracts you generally pay the balance of 10% of the purchase price. So for example you are buying a house for €200,000. You pay the estate agent a €6k booking deposit. When you go to sign your contracts you need to have paid 10% so that would be €20k less the €6k (paid to EA) so you would get a bank draft for €14k payable to the Vendors solicitor (your solicitor will tell you who that is). The only exception to a 10% deposit being paid in total on signing the contracts is where you are borrowing 92% of the purchase price. In this case your solicitor will contact the Vendors solicitor to see if they will accept a deposit of 8% in total (including booking deposit paid) on signing the contracts as opposed to 10% seeing as the mortgage is making up the balance i.e 92%. 99 times out of 100 the vendors solicitor will be happy to agree to this.... hope this clarifies!

Hi - just to clarify one point there. From what I've seen (from my own property purchase, and a relative going through the process), some estate agents don't seem to mark the property sale agreed until the sale has actually gone through, ie. contracts signed, which may be around 3 months after they receive the booking deposit.

I guess they do this to keep the interest up, in case the sale falls through, or to try and generate business for their other properties. However, it can lead to suspicion that they are still showing the property.

I've also had experience of the estate agent taking a further bid, after I had paid my booking deposit, which apparently is legal. :mad: So, be very wary....

killers1

Citygirl1 wrote: »

Hi - just to clarify one point there. From what I've seen (from my own property purchase, and a relative going through the process), some estate agents don't seem to mark the property sale agreed until the sale has actually gone through, ie. contracts signed, which may be around 3 months after they receive the booking deposit.

I guess they do this to keep the interest up, in case the sale falls through, or to try and generate business for their other properties. However, it can lead to suspicion that they are still showing the property.

I've also had experience of the estate agent taking a further bid, after I had paid my booking deposit, which apparently is legal. :mad: So, be very wary....

Citygirl1 you are right in what you say... I would only add that once your offer is accepted and you pay your booking deposit keep hounding the estate agent until you can see on their website that the property is sale agreed & threaten to withdraw your offer if it is not amended .... As for whether they can still take a higher offer further down the road - of course they can, nothing is binding until both the buyer and the vendor have exchanged contracts. Once it's advertised as 'Sale Agreed' you've taken a step in the right direction...

nemo32

I'm in!!!! I put my booking deposit down on the 14th of Feb but no sign of the contracts yet. Any idea how long this normally takes?
Letter of offer has been sent to solicitor, so do I just need to sit and wait now?

killers1

nemo32 wrote: »

I'm in!!!! I put my booking deposit down on the 14th of Feb but no sign of the contracts yet. Any idea how long this normally takes?
Letter of offer has been sent to solicitor, so do I just need to sit and wait now?

The length of time it will take for the contracts to arrive with your solicitor will depend on how organised the seller was. Some people put their property on the market and only when they accept an offer will they contact their solicitor to say I've sold my house and I need you to organise the contracts. At that stage their solicitor writes to them to sign an authority for the solicitor to request the Title Deeds from the owners lender. This can take some time and even more so if the bank can't find them or they are held off-site or with another solicitor from a previous transaction... Where the seller is organised and has already engaged their solicitor to get the deeds and have contracts ready to go once an offer is accepted they generally arrive within a week or two... Sorry but there's no definitive answer here.. Main thing is you have your loan offer with the solicitor. All you can worry about is your end and let your solicitor continue to chase up the vendors solicitor for the contracts...If you read back a few posts on this thread I gave an outline of the things you need to have in place for your mortgage to issue so these are the items you should be dealing with now. With regard to the contracts all you can do is sit and wait...

nemo32

killers1 wrote: »

The length of time it will take for the contracts to arrive with your solicitor will depend on how organised the seller was. Some people put their property on the market and only when they accept an offer will they contact their solicitor to say I've sold my house and I need you to organise the contracts. At that stage their solicitor writes to them to sign an authority for the solicitor to request the Title Deeds from the owners lender. This can take some time and even more so if the bank can't find them or they are held off-site or with another solicitor from a previous transaction... Where the seller is organised and has already engaged their solicitor to get the deeds and have contracts ready to go once an offer is accepted they generally arrive within a week or two... Sorry but there's no definitive answer here.. Main thing is you have your loan offer with the solicitor. All you can worry about is your end and let your solicitor continue to chase up the vendors solicitor for the contracts...If you read back a few posts on this thread I gave an outline of the things you need to have in place for your mortgage to issue so these are the items you should be dealing with now. With regard to the contracts all you can do is sit and wait...

Tks Killers1
The seller was a bank in actual fact so I thought they would be a little more organised but maybe not. Yes I have been looking into life and home insurance in the meantime so all ready for that now I think. Need to get the gas/electricty turned back on so that I can get the survey done but solicitor said to wait for the contracts before I do that so it's a waiting game for now. Not that I am too pushed.. gives me more time to save and plan

killers1

nemo32 wrote: »

Tks Killers1
The seller was a bank in actual fact so I thought they would be a little more organised but maybe not. Yes I have been looking into life and home insurance in the meantime so all ready for that now I think. Need to get the gas/electricty turned back on so that I can get the survey done but solicitor said to wait for the contracts before I do that so it's a waiting game for now. Not that I am too pushed.. gives me more time to save and plan

You'd think that because it's a bank sale they would be a little more organised with the title deeds etc but on the other hand it can be slowed down by receivers, paperwork, legal charges with other lenders, the list is endless... Sounds like you are well prepared and have everything in hand so don't worry about the things you have no control over. Your solicitor can check at any stage with the vendors solicitor to see what's holding up the contracts being sent out and get an idea of when they might be received... best of luck!

liliq

We just bought out house last year so have gone through the whole process fairly recently.

It can be so slow and drawn out- I'd advise anyone to start shopping around for life assurance straight away once you apply for a mortgage! We got some good initial quites but when it came down to it not so great prices due to my partner having diabetes. Seems to be a blanket loading for certain medical conditions.

We also payed our booking deposit through our solicitor to the estate agent, more out of over caution than anything else.

Afehogan

Starting this process at the moment. Have a property in mind but haven't made any offer as need to go to the bank to look for approval in principle first! Is it necessary to have all the pay slips, Salary cert , statements etc for the approval in principle? Or is that just when you are applying for the mortgage?

blueturnip

Afehogan wrote: »

Starting this process at the moment. Have a property in mind but haven't made any offer as need to go to the bank to look for approval in principle first! Is it necessary to have all the pay slips, Salary cert , statements etc for the approval in principle? Or is that just when you are applying for the mortgage?

I am in the process of getting the MIP. You need ALL the bits and pieces! I think I have printed out close to a full tree trying to get it together

I have:
Salary Certs
Payslips
CC Statements
Savings Accounts Statments
Proof of EU Citizenship
Proof of Rental payment

No bank statements etc as we are going with AIB where all our current accounts etc are.

And I am sure I am missing something...

Afehogan

blueturnip wrote: »

Afehogan wrote: »

Starting this process at the moment. Have a property in mind but haven't made any offer as need to go to the bank to look for approval in principle first! Is it necessary to have all the pay slips, Salary cert , statements etc for the approval in principle? Or is that just when you are applying for the mortgage?

I am in the process of getting the MIP. You need ALL the bits and pieces! I think I have printed out close to a full tree trying to get it together

I have:
Salary Certs
Payslips
CC Statements
Savings Accounts Statments
Proof of EU Citizenship
Proof of Rental payment

No bank statements etc as we are going with AIB where all our current accounts etc are.

And I am sure I am missing something...

Proof of eu citizenship? How on
Earth do I get that? Is it enough to just show rent on the statements do you think?

blueturnip

Afehogan wrote: »

Proof of eu citizenship? How on
Earth do I get that? Is it enough to just show rent on the statements do you think?

I have just used our passports. Otherwise I would be stuck

I have read posts from people who have just used statements where the description is 'Rent' and that was enough... But I don't know if that would still be the case.

killers1

blueturnip wrote: »

Afehogan wrote: »

Proof of eu citizenship? How on
Earth do I get that? Is it enough to just show rent on the statements do you think?

I have just used our passports. Otherwise I would be stuck

I have read posts from people who have just used statements where the description is 'Rent' and that was enough... But I don't know if that would still be the case.

Rent evidenced in your bank statements will do.

A passport from an EU country will suffice as proof of EU citizenship. People from some countries require a Stamp 4 Visa to live & work in Ireland so if your from outside of the EU the banks will look for this and your passport.

Verte11

There's an asbestos flat roofed extension on the property I'm buying. Bank are asking for quotes for it to be removed and replaced. Fair enough. Regardless of what the bank thinks, I wasn't going to be replacing it straight away. My friends have an asbestos roof on their lean-to. My parents also have asbestos in garage. As far as I'm aware it's okay unless I stand on the roof and break it or if it's damaged in parts.
If I can prove to the Banks I have the funds I'm ok but out of curiosity anyone out there living with an asbestos roof and still alive? My valuer thinks I should renegotiate price of house but I don't want to jeprodize sale and lose house. I can cope with having to spend a bit of money down the line. I don't think I need this replaced straight away.What do you think?

feelpablo

Verte11 wrote: »

There's an asbestos flat roofed extension on the property I'm buying. Bank are asking for quotes for it to be removed and replaced. Fair enough. Regardless of what the bank thinks, I wasn't going to be replacing it straight away. My friends have an asbestos roof on their lean-to. My parents also have asbestos in garage. As far as I'm aware it's okay unless I stand on the roof and break it or if it's damaged in parts.
If I can prove to the Banks I have the funds I'm ok but out of curiosity anyone out there living with an asbestos roof and still alive? My valuer thinks I should renegotiate price of house but I don't want to jeprodize sale and lose house. I can cope with having to spend a bit of money down the line. I don't think I need this replaced straight away.What do you think?

Get a quote to replace it and go back to the estate agent with a copy. get him to contact the seller re the price and tell him the bank has instructed you to do so.

Wont do anyharm as all the seller can say is no!

killers1

Verte11 wrote: »

There's an asbestos flat roofed extension on the property I'm buying. Bank are asking for quotes for it to be removed and replaced. Fair enough. Regardless of what the bank thinks, I wasn't going to be replacing it straight away. My friends have an asbestos roof on their lean-to. My parents also have asbestos in garage. As far as I'm aware it's okay unless I stand on the roof and break it or if it's damaged in parts.
If I can prove to the Banks I have the funds I'm ok but out of curiosity anyone out there living with an asbestos roof and still alive? My valuer thinks I should renegotiate price of house but I don't want to jeprodize sale and lose house. I can cope with having to spend a bit of money down the line. I don't think I need this replaced straight away.What do you think?

Was this something highlighted on the valuation report or the structural survey?

Verte11

Heya. It was highlighted on Valuation not structural survey but I had to show the bank both as house over 100 years old.

killers1

Verte11 wrote: »

Heya. It was highlighted on Valuation not structural survey but I had to show the bank both as house over 100 years old.

I was just curious if you had sent a copy of the structural survey to the bank when there was no need to but as the property is over 100 yrs old they would have looked for it in any case. If you don't want to try to renegotiate the purchase price I'd suggest contacting your structural surveyor (not the Valuer) to see how much of an issue this really is. If he can write you a letter to confirm that a large number of properties consist of asbestos building materials as it was commonly used and shouldn't be an issue for the bank this may suffice. He'll also be able to provide an idea of how much it would cost to replace. I'd certainly recommend raising it either with the estate agent or via your solicitor to raise with the other side's solicitor to see if they would be willing to renegotiate the purchase price based on the cost of getting it replaced. I don't think it will be a deal breaker for the bank if you want to proceed as is at the agreed price though if your surveyor can give the bank some comfort around it.