Currently buying/selling a house? How is it going? READ MOD NOTE POST #1

SpencerJC

I just got word today that Ulster Bank would continue with our loan approval so we are going to push ahead with the purchase. The contract is currently in the post. Once we sign the contracts I assume this is the final stage before getting the keys or am I missing something?

givyjoe

baldshin wrote: »

Went sale agreed at the start of February and everything was going well. Decided not to lower our offer as we felt the house matched all we needed for the medium term future. Just got the engineer's report back though and it's not good reading, lots of hidden gremlins in the house and structural work which needs repair or replacement. Possibly talking €30k worth, almost 15% of the value of the house. Really disappointing but I guess we have some decisions to make.

What happens in a case like this? Presuming you can pull out but will obviously have had to pay the valuer.. are there any other unrecoverable costs at this point?

First time buyer myself (AIP since March) but haven't been able to view any houses since then.

Aelun

Does anyone know what the current situation is with Ulster Bank and drawdowns. The girlfriend and myself had contracts signed (we got an exception) one a new build a couple of weeks before the lockdown, with the view to getting the keys early next month. We're both in full-time employment, but my company have just availed of the wage subsidy scheme, with them topping us up to the 100%.

Fearing that UB will hold off now as a result of this..

Any advice would be greatly appreciated.

Captainsatnav

givyjoe wrote: »

What happens in a case like this? Presuming you can pull out but will obviously have had to pay the valuer.. are there any other unrecoverable costs at this point?

First time buyer myself (AIP since March) but haven't been able to view any houses since then.

You have 3 options:
1. Walk away, get booking deposit back but you'll lose a few hundred in engineer / surveyor fee. Worth it IMO.
2. Show engineer / surveyor report to vendor and ask them to knock €30k off the price. Anyone else who went sale agreed would have to face same costs to repair so if the vendor tells you to take a hike, the next person to go sale agreed will come looking for the same when they get their respective report. The vendor won't do better.
3. Go through with sale at agreed price

PommieBast

givyjoe wrote: »

What happens in a case like this? Presuming you can pull out but will obviously have had to pay the valuer.. are there any other unrecoverable costs at this point?

Booking deposit should be returned in its entirety but EAs are known to drag their heels on this. Actual cost is basically whatever professional services you have used - in my case I had spent about a grand having the building surveyor and asbestos check done before I pulled out.

Solicitor fees is a grey area. Mine did not charge anything for the aborted sale, but reading between the lines of the advice they gave me, it was clear they thought I should run for the hills.

awec

I think solicitor fees would depend on how much, and what work they have done before you pull out.

zapper55

baldshin wrote: »

Went sale agreed at the start of February and everything was going well. Decided not to lower our offer as we felt the house matched all we needed for the medium term future. Just got the engineer's report back though and it's not good reading, lots of hidden gremlins in the house and structural work which needs repair or replacement. Possibly talking €30k worth, almost 15% of the value of the house. Really disappointing but I guess we have some decisions to make.

There was no structural work required on my house, just cosmetic (new floors, external doors paint etc), and replace the boiler and it's close to 15k.

I'd say an estimate of 30k for structural work and gods knows what else is on the low side. At the very least I would do what someone suggested about putting in a lower offer. With the current climate they might be grateful to sell.

mcbert

FYI, when i pulled out of a sale a few weeks ago, solicitor 'charged' us for work done which was few hundred, but then that would come off the next house we switched to, so no loss overall. In practice they'll simply change us when second sale closes, as if first house never happened. Never got bill for first house.

SpencerJC

Aelun wrote: »

Does anyone know what the current situation is with Ulster Bank and drawdowns. The girlfriend and myself had contracts signed (we got an exception) one a new build a couple of weeks before the lockdown, with the view to getting the keys early next month. We're both in full-time employment, but my company have just availed of the wage subsidy scheme, with them topping us up to the 100%.

Fearing that UB will hold off now as a result of this..

Any advice would be greatly appreciated.

Hey, I was in the same boat with Ulster Bank the last couple of weeks and just got news yesterday that the loan offer would be processed today, so good news. The only thing is we did not require any exception so I don't know if this would impact you. Basically, their loans are sitting with underwriters atm and all new loans now need to include a 'COVID clause'. Some loans may be subject to a further valuation given the current circumstances, the banks are really just trying to protect themselves. I think for the most part they will honor the approvals they have already made.

Aelun

SpencerJC wrote: »

Hey, I was in the same boat with Ulster Bank the last couple of weeks and just got news yesterday that the loan offer would be processed today, so good news. The only thing is we did not require any exception so I don't know if this would impact you. Basically, their loans are sitting with underwriters atm and all new loans now need to include a 'COVID clause'. Some loans may be subject to a further valuation given the current circumstances, the banks are really just trying to protect themselves. I think for the most part they will honor the approvals they have already made.

Thanks SpencerJC, appreciate the reply. Did they ask for a updated payslip? I'm led to believe that payslips show the wage subsidy scheme, maybe i'm wrong. Did they ask you were there any change in your circumstances and did you contact them first or did they contact you. Sorry for all the questions...

Gavin "shels"

Aelun wrote: »

Thanks SpencerJC, appreciate the reply. Did they ask for a updated payslip? I'm led to believe that payslips show the wage subsidy scheme, maybe i'm wrong. Did they ask you were there any change in your circumstances and did you contact them first or did they contact you. Sorry for all the questions...

Myself and my fiancee are currently approved with UB including an exception, hoping to put a bid in soon but like yourself her employer has gone with the Government top up so we've had to submit her latest payslip to our Broker this week. Just to note, it does state on her payslip the amount the Government are paying of her salary. Once I hear from my Broker I'll post, if you hear something you might post also.

Aelun

Gavin shels wrote: »

Myself and my fiancee are currently approved with UB including an exception, hoping to put a bid in soon but like yourself her employer has gone with the Government top up so we've had to submit her latest payslip to our Broker this week. Just to note, it does state on her payslip the amount the Government are paying of her salary. Once I hear from my Broker I'll post, if you hear something you might post also.

Will defo do, cheeers.

SpencerJC

Aelun wrote: »

Thanks SpencerJC, appreciate the reply. Did they ask for a updated payslip? I'm led to believe that payslips show the wage subsidy scheme, maybe i'm wrong. Did they ask you were there any change in your circumstances and did you contact them first or did they contact you. Sorry for all the questions...

They didn't ask for payslips from us even though we were kind of expecting them to. My girlfriend did have to go on that scheme but her boss didn't think it would be mentioned on the payslip itself, however, this could vary depending on who processes the payslips. I would expect payslips will be asked for from some people, it seems like they are approaching it on a case to case basis but I can't be sure.

cunnifferous

My AIP with PTSB lapsed today. Had an exemption for approx. 4X LTI. Have previously gotten exemption with UB also for 4.2X LTI but it also lapsed.

Broker told me currently no banks are offering any new exemptions but PTSB would extend AIP but at 3.5X LTI only.

I'm public sector, my partner is in a 'safe' job, no debt no kids and first time buyer. Approx 18% deposit saved. I wonder how I would fare if I found a house and needed even a small exemption.

D'Agger

podgeandrodge wrote: »

In my view, it's probably down to whether you intend to live there long term. No point in always wondering about property fluctuations, if you find the house you want, ignore the price fluctuations after and enjoy the house.

In Dublin anyway there is still probably still a shortage of supply to an extent so hopefully prices won't go too far down. The last crash was different circumstances.

Maybe ask yourself, if you get the house and it then drops 10%, will that weigh on you continually or will you be able to just ignore it and enjoy your purchase!

True, felt I was overpaying a tad and have since had the price knocked down 10k to the initial asking price. Tempted to push for another 5k off, trying to weigh up if that's feasible. Was told 10k off was all the vendor selling the house would go for so pushing for more may end things. If I got the 5k more off I'd sign on the dotted line no problem, the reason I want to push is because there's some minor work to be done on the house and 5k would go a long way towards that, plus would have a good effect on my monthly mortgage repayments across the 35 year term as I'd have to borrow less.

_ZeeK_ wrote: »

Has anybody who went Sale Agreed before the lockdown was introduced managed to re-negotiate the price?

Concerned that going ahead with a sale at old market prices would be like those who bought in the dying days of The Tiger.

Don't think my situation is as comparable tbh, tiger prices were bananas but understand the worry to an extent. As above, got down to asking price and trying to figure out if I should push for more. Same property type in the estate sold for the asking price on 20/3 according to the property price register.

Zenify

cunnifferous wrote: »

My AIP with PTSB lapsed today. Had an exemption for approx. 4X LTI. Have previously gotten exemption with UB also for 4.2X LTI but it also lapsed.

Broker told me currently no banks are offering any new exemptions but PTSB would extend AIP but at 3.5X LTI only.

I'm public sector, my partner is in a 'safe' job, no debt no kids and first time buyer. Approx 18% deposit saved. I wonder how I would fare if I found a house and needed even a small exemption.

House that was 4X your income may soon be less than 3.5X your income. Same house and a smaller mortgage. This is a good thing.

hotpoker

Hi all. I posted this in anotger thread so apologies if you've seen before.

So I got the wheels in motion on buying a house at Christmas following a hard few years saving for a deposit. Got the mortgage approved and then viewed and placed an offer on an a 3 bed apartment. The apartment is on the edge of Galway city. It's in a prime location, built in 2003 and on the face of it is pretty solid. The offer I put on it is 205k which was standard for this type of house in the area. Offer accepted and booking deposit paid.

My goal for it is as a starter home, where instead of paying rent I can actually make a small sum off it by renting out the spare rooms. My plan is to save this money and the money I save on rent to put towards building my own home in the next 5-7 years. I'm 27 now. I was due to have an engineer do a report on the structure the Tuesday after Leo announced restrictions. Therefore it is in limbo.

What's people's opinions. Should I cancel the deal and hold out for a price crash or continue? This is a very different recession to last. We are undersupplied on houses in Galway and nationally but with people inevitably losing their jobs permanently the demand may also drop. Buy or hold out?

Queasy Tadpole

You're in a position to buy, you're going to stay there for 5-7 years... I'd plug the trigger and go ahead.

I was in a position to buy a year ago and I regret it now everyday that I didn't go through with it. No telling how long it's gonna take us to sell our house and find another we like.

Experience_day

hotpoker wrote: »

Hi all. I posted this in anotger thread so apologies if you've seen before.

So I got the wheels in motion on buying a house at Christmas following a hard few years saving for a deposit. Got the mortgage approved and then viewed and placed an offer on an a 3 bed apartment. The apartment is on the edge of Galway city. It's in a prime location, built in 2003 and on the face of it is pretty solid. The offer I put on it is 205k which was standard for this type of house in the area. Offer accepted and booking deposit paid.

My goal for it is as a starter home, where instead of paying rent I can actually make a small sum off it by renting out the spare rooms. My plan is to save this money and the money I save on rent to put towards building my own home in the next 5-7 years. I'm 27 now. I was due to have an engineer do a report on the structure the Tuesday after Leo announced restrictions. Therefore it is in limbo.

What's people's opinions. Should I cancel the deal and hold out for a price crash or continue? This is a very different recession to last. We are undersupplied on houses in Galway and nationally but with people inevitably losing their jobs permanently the demand may also drop. Buy or hold out?

I don't know about Galway, but if the house is only 205k.......then a 10% drop is 184.5k......so would you be unhappy at paying potentially 20.5k more? What would you save on rent in the meantime?



Basically how long is a piece of string, but 205k is relatively small change. Even a 20% drop is 40k.......so essentially no new BMW for you! A three bedroom apartment on the edge of Galway city for 164k would be pretty nice..



The downside is that you might be tied into an area......

cunnifferous

Zenify wrote: »

House that was 4X your income may soon be less than 3.5X your income. Same house and a smaller mortgage. This is a good thing.

Well that's the hope obviously but although it's early days I'm not seeing much movement from estate agents or sellers yet. Time will tell I guess

Plumbthedepths

Son put an offer on a house 2 months ago few issues had to be sorted. Payslips and allowances had to be updated again and a gift from his mum and me had to accounted for. He got word yesterday that he has to sign for the mortgage drawdown . Happy chap. Loan is with UB. Single buyer.

Gavin "shels"

Aelun wrote: »

Will defo do, cheeers.

Just reading on a Facebook group I'm in, a couple were refused drawdown with PTSB as their partner is on the Covid-19 subsidy but they were still receiving 100% of their salary and submitted a letter from their employer stating their job was not effected by Covid-19... not good Thursday afternoon reading

Bargain_Hound

Gavin shels wrote: »

Just reading on a Facebook group I'm in, a couple were refused drawdown with **** as their partner is on the Covid-19 subsidy but they were still receiving 100% of their salary and submitted a letter from their employer stating their job was not effected by Covid-19... not good Thursday afternoon reading

That's me!

Not sure what we are going to do now. Such an awful position we are in. Currently living with In laws with our 6 year old son and looks like we are going to be stuck here now for sometime.

Currently in receipt of 105% the stated income on the original loan application, but this isn't being considered at all. Nightmare.

Gavin "shels"

Bargain_Hound wrote: »

That's me!

Not sure what we are going to do now. Such an awful position we are in. Currently living with In laws with our 6 year old son and looks like we are going to be stuck here now for sometime.

Currently in receipt of 105% the stated income on the original loan application, but this isn't being considered at all. Nightmare.

Myself and fiancee in a crappy position too, living with my parents and we were hoping to be out this year by September (before our 2 year "tenancy" arrives in October)....

TomTanks

Bargain_Hound wrote: »

That's me!

Not sure what we are going to do now. Such an awful position we are in. Currently living with In laws with our 6 year old son and looks like we are going to be stuck here now for sometime.

Currently in receipt of 105% the stated income on the original loan application, but this isn't being considered at all. Nightmare.

I'm in the same boat with PTSB about to sign contracts, I'll assume they will refuse to drawdown. Have the given any alternative at all or just refused altogether?

Bargain_Hound

TomTanks wrote: »

I'm in the same boat with PTSB about to sign contracts, I'll assume they will refuse to drawdown. Have the given any alternative at all or just refused altogether?

Refused altogether unfortunately.
They only issued loan offer 2 weeks ago so no idea why they would push it this far and then refuse.

ELM327

We have AIP for 3.5x with PTSB, extended over the phone for 6 months the other week. She advised that drawing down wouldn't be an issue as we were already underwritten for the full amount.

I don't think we'll be moving any time soon, we've kinda put it on the back burner as we're both in high risk groups and have been self isolating since the beginning of this in March

Bargain_Hound

ELM327 wrote: »

We have AIP for 3.5x with PTSB, extended over the phone for 6 months the other week. She advised that drawing down wouldn't be an issue as we were already underwritten for the full amount.

I don't think we'll be moving any time soon, we've kinda put it on the back burner as we're both in high risk groups and have been self isolating since the beginning of this in March

Just to reiterate what is mentioned a lot on these forums. I don't think any underwritten loan offer is safe until the cash lands in your solicitors account. Our case being an example. We were due to drawdown Today/Tuesday with all loan conditions checked off.

stayback

I’ve been watching this thread for a while now. I want to give you my view.

I don’t want to be negative but an AIP isn’t worth the paper it’s written on. If you read the t&c’s attached to it, there are so many loopholes for the banks not to honour it.

If banks get a sniff of an issue with income valuation etc they will pull the mortgage approval regardless of whatever stage you are at.

Banks will protect their money at all costs. Especially now when they are forced to offer another 3 months moratorium.

A bit of perspective I was an underwriter for 15 years for one of the big banks not anymore thank god. Not in financial services anymore .

Zenify

Bargain_Hound wrote: »

Refused altogether unfortunately.
They only issued loan offer 2 weeks ago so no idea why they would push it this far and then refuse.

Just to clarify, did you get a loan offer on the condition of Covid-19 and then they did not honour it at drawdown? Or did your circumstances change after the loan offer?