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

Aelun

SpencerJC wrote: »

UB finally drew down for us today, getting the keys tomorrow, exciting times!

First off congrats!....UB didn't look for the payslips then? I heard some people are being asked to sign a form stating their income hasn't changed. Did you get this?

Pablo_Flox

SpencerJC wrote: »

UB finally drew down for us today, getting the keys tomorrow, exciting times!

Congratulations! I am in the same situation, drew down from UB yesterday and will be getting the keys tomorrow. 13 weeks process for me with some stressful moments along the way. Had a long think about what to do once covid hit and decided to go full steam ahead. I did manage to renegotiate a a modest decrease, but would have gone ahead anyway as it is somewhere I plan on staying for at least the next 10 - 15 years, the mortgage for the house (4 bed) is less than what I'm paying for a 1 bed apartment now, and if I was to wait and the economy did take as big a hit as some pessimists are wishing for I would be well into my 40s before I was in a position buy again.

Best of luck to everyone that is in the process. Its a lot of work and stress, but ultimately its worth it!

hometruths

sorry, wrong thread!

Tazium

stayback wrote: »

I’m trying to get my head around this.. how could the solicitor confirm the house is finished . How has the title passed to you. How will the solicitor fulfill his undertaking to the bank.

I hope for everyone’s sake the builder doesn’t go bust or there is a major delay in getting the keys cause there will be a lot of questions to answer. Your paying for a house that you don’t have possession of. Very risky move ..

Within the process of mortgage draw-down there's no requirement for the property to be finished. It's expected and likely assumed but the bank don't talk to the builders to make sure they're done. The Bank will send a valuer and they did, the valuer made an accurate report to the value of the house and satisfied the banks interest.

I'm paying a mortgage for a house that's not yet finished. That's our risk and it's fine. We're treating it as starting early and finishing sooner. The house will be ready in about 8 weeks give or take. If the builder doesn't finish or goes boom, we'll lose our deposit only but even that would be a huge loss. The mortgage money is with the solicitor and can be repaid immediately.

The upside to drawing down early is less worry about bank's scrutiny of our finances as the country moves into reduced lending and tighter criteria. We are lucky to be able to satisfy both an existing mortgage and the brand new one comfortably. For us, this worked and it's eased stresses. Also enables us to deal with the builder for priority completion given there's no delays in getting the finance in place.

stayback

Tazium wrote: »

Within the process of mortgage draw-down there's no requirement for the property to be finished. It's expected and likely assumed but the bank don't talk to the builders to make sure they're done. The Bank will send a valuer and they did, the valuer made an accurate report to the value of the house and satisfied the banks interest.

I'm paying a mortgage for a house that's not yet finished. That's our risk and it's fine. We're treating it as starting early and finishing sooner. The house will be ready in about 8 weeks give or take. If the builder doesn't finish or goes boom, we'll lose our deposit only but even that would be a huge loss. The mortgage money is with the solicitor and can be repaid immediately.

The upside to drawing down early is less worry about bank's scrutiny of our finances as the country moves into reduced lending and tighter criteria. We are lucky to be able to satisfy both an existing mortgage and the brand new one comfortably. For us, this worked and it's eased stresses. Also enables us to deal with the builder for priority completion given there's no delays in getting the finance in place.

It’s still very risky .. your solicitor is not in possession of the title. If the bank asks your solicitor to fulfil his undertaking he won’t be able too. Title has not passed to you yet. Yet the bank are relying on a property that you do not own. There are a lot of variables that could go against you but i wish ye the best of luck..

dowhatyoulove

Aelun wrote: »

First off congrats!....UB didn't look for the payslips then? I heard some people are being asked to sign a form stating their income hasn't changed. Did you get this?

Hi Aelun - we got asked to sign a form and provide last 3 months payslips from UB even tho our finances haven’t changed.

Told the solicitor to start the drawdown process on Tuesday - anyone know how many days it takes UB at the moment?

masterboy123

Our new house will be ready in about 4 weeks time.

Our mortgage approval was expired in March 2020, so PTSB asked for updated 2x payslips and extended it for another 6 months, until September 2020.

I continue to work in Healthcare settings.

Is there a possiblity that PTSB will cause issues when it's time for draw down, given how economy is these days?

Also how many days does it take to get mortgage amount transferred to the builder via solicitor?

Thank you

lfen

dowhatyoulove wrote: »

Hi Aelun - we got asked to sign a form and provide last 3 months payslips from UB even tho our finances haven’t changed.

Told the solicitor to start the drawdown process on Tuesday - anyone know how many days it takes UB at the moment?

They are painfully slow. We applied end of Jan and are still waiting drawdown. House is ready to go. If they request 1 document for review it honestly takes them 7-9 business days to get back!

JL555

lfen wrote: »

They are painfully slow. We applied end of Jan and are still waiting drawdown. House is ready to go. If they request 1 document for review it honestly takes them 7-9 business days to get back!

That is really slow, would drive me around the bend.

dowhatyoulove

lfen wrote: »

They are painfully slow. We applied end of Jan and are still waiting drawdown. House is ready to go. If they request 1 document for review it honestly takes them 7-9 business days to get back!

Our mortgage advisor is usually very quick to get back to us with everything, usually within a day or two?
Disappointing news - usually I hear it’s quicker

lfen

JL555 wrote: »

That is really slow, would drive me around the bend.

It’s excruciating! And generally they come back asking for something else. Got AIP in March. Madness.

lfen

dowhatyoulove wrote: »

Our mortgage advisor is usually very quick to get back to us with everything, usually within a day or two?
Disappointing news - usually I hear it’s quicker

Really? Maybe we got unlucky with our particular branch. We’ve honestly never heard back sooner than 5 working days on anything. The line we get is ‘we’ve quite a backlog as our rates are so good’.

19233974

anyone know what the minimum amount you can sell a house. As in parent selling main property to my sister, but does it have to be a certain percentage of current market value?

mcbert

19233974 wrote: »

anyone know what the minimum amount you can sell a house. As in parent selling main property to my sister, but does it have to be a certain percentage of current market value?

I think you can sell for whatever you want, but if tax is involved, that might be on market value: I dont know - gift tax perhaps, not sure what else.

19233974

mcbert wrote: »

I think you can sell for whatever you want, but if tax is involved, that might be on market value: I dont know - gift tax perhaps, not sure what else.

So technically we could sell it for €5, but the only issue is Gift and Inheritance Tax (Capital Acquisitions Tax – CAT). But since the property is valued at 200k its below the threshold for that?

does anyone have experience of same and could advise?

Claw Hammer

19233974 wrote: »

So technically we could sell it for €5, but the only issue is Gift and Inheritance Tax (Capital Acquisitions Tax – CAT). But since the property is valued at 200k its below the threshold for that?

does anyone have experience of same and could advise?

If you sell below market value, the balance is deemed to be a gift. the thresholds are lifetime so there may be no tax due at the time of the gift but a later gift or inheritance could be affected since some or all of the tax free allowance has been used up.

dowhatyoulove

lfen wrote: »

Really? Maybe we got unlucky with our particular branch. We’ve honestly never heard back sooner than 5 working days on anything. The line we get is ‘we’ve quite a backlog as our rates are so good’.

Perhaps - we went from applying back in December to fullly approved in I think 5 weeks as it was over Christmas and we got an exception. It’s been very quick. Only thing slowed us down so far was the Covid restrictions on construction.

dowhatyoulove

lfen wrote: »

Really? Maybe we got unlucky with our particular branch. We’ve honestly never heard back sooner than 5 working days on anything. The line we get is ‘we’ve quite a backlog as our rates are so good’.

Perhaps - we went from applying back in December to fullly approved in I think 5 weeks as it was over Christmas and we got an exception. It’s been very quick. Only thing slowed us down so far was the Covid restrictions on construction.

JL555

Our contracts have been exchanged and are now legally binding, drawdown set for about 10 days time. However, we have been informed today that the vendors had a query if we have been in the house recently as they noticed some discrepancy there. We know that the house has been vacant since late last year and the last time we have been in the house was 3 months ago, this is very annoying, not only have they been dragging their heels with having their paperwork in order which caused a lot of delays on the process, it seems now that they have not even been near the property at all for quite some time leaving it unsecured and not tended too.

Nijmegen

Sigh. After citing lockdown as reasons to delay but not cancel the sale (“really keen to go ahead” they told the EA more than once) - PRA not open so searches couldn’t occur, couldn’t get movers etc - our buyers pulled out today. Understandable on one level given the market uncertainty but feels like we’ve been strung along by them over the past couple of weeks - proof it’s not just vendors who play games. Sellers of the place we want to buy back advertising and laying the pressure on. Gamey few weeks ahead now to see how it all pans out.

Marcusm

stayback wrote: »

It’s still very risky .. your solicitor is not in possession of the title. If the bank asks your solicitor to fulfil his undertaking he won’t be able too. Title has not passed to you yet. Yet the bank are relying on a property that you do not own. There are a lot of variables that could go against you but i wish ye the best of luck..

The bank is relying on the solicitor’s undertaking to retain the funds in its segregated client account until the property sale can be completed.

Marcusm

19233974 wrote: »

So technically we could sell it for €5, but the only issue is Gift and Inheritance Tax (Capital Acquisitions Tax – CAT). But since the property is valued at 200k its below the threshold for that?

does anyone have experience of same and could advise?

You can sell it for a bean so long as the parties are happy that it is valuable and sufficient consideration. Is it your parents’ PPR? If not, market value will be used to calculate any capital gain(taxes at 33%) plus valuation of the gift for CAT purposes. There is a cross credit to avoid double taxation. Stamp duty will likewise require market value to be used. Get some advice!

fifth

About to sign contracts next week and just noticed the contract lists the purchase price as 6% lower than the price I went sale agreed on. It says inclusive of VAT so I'm not sure what is going on there, probably an error. Hopefully does not delay things much further as I've been waiting weeks to sign.

masterboy123

I think that's the price after you have paid 5% initial deposit.

fifth wrote: »

About to sign contracts next week and just noticed the contract lists the purchase price as 6% lower than the price I went sale agreed on. It says inclusive of VAT so I'm not sure what is going on there, probably an error. Hopefully does not delay things much further as I've been waiting weeks to sign.

fifth

masterboy123 wrote: »

I think that's the price after you have paid 5% initial deposit.

Hmmm. Just checked and the figures still don't add up that way.

Edit: Actually, there is a separate document that outlines what appears to be some kind of a provision for the purchase of land the property is built on which accounts for the 6%. So everything adds up. I'll double check with my solicitor.

Queenio

Hi all. First poster here. Loving this forum. Im in the process of house hunting. We got AIP March and then went into lockdown so it's been almost 3 months now of a clock ticking. I've been to one viewing in person and a few online viewings. For work reasons I'm quite restricted to areas.

We did a virtual viewing I loved the look of and are awaiting a viewing in person but was told it's not possible. The house has now been sale agreed. As FTB we not keen to offer without viewing in person. There have been so few properties in our chosen area and budget. Im also pregnant which I found out after we got AIP so I would love this process to be completed before needing to review. Feeling so disheartened already and haven't even gotten started. Supply is diminishing entirely. Hope some more properties come online June 8th but really not sure

Maz2016

Hi guys. Feeling a bit deflated as well. I’m looking at apartments and duplexes in a certain area. I’m restricted to that area as I want to be close to family. There is a property advertised for 185k, when I rang viewings hadn’t even begun (apart from virtual video on the website) but he already had an offer for 195k in. Second property I was interested in needed a lot of renovations has been sold even though it’s still on daft. I just put together a list of 5 properties I have been following in recent months. It’s a bit disheartening. Is in common that final sales would be 10-15k higher than the listed price?

Property 1
Listed €155k
Sold €165k
May 1st

Property 2
Listed €185k
Sold €200k
Apr 16th

Property 3
Listed €140k
Sold €153k
Apr 6th

Property 4
Listed €190k
Sold 190k
Mar 27th

Property 5
Listed €175k
Sold €190
Mar 18th

Nijmegen

In the old world, yes quite common. You lay an offer on a house that has been sitting on the market and almost magically the EA will come back and say “we just had another offer for €10k more, but I think with €15k they’ll do the deal with you...”

Don’t be too disheartened. EAs haven’t been able to get into new houses to take photos and so on, potential sellers are just as concerned as some are gleeful at the idea of large price drops and are holding back a bit, but if the dip isn’t too big they’ll be on the market. Plus seeing builders go back and get active on new developments tells you there’s still a market and that activity will help spur on others.

Chin up, it’s not a straightforward process but you’ll get there in the end.

Maz2016

Nijmegen wrote: »

In the old world, yes quite common. You lay an offer on a house that has been sitting on the market and almost magically the EA will come back and say “we just had another offer for €10k more, but I think with €15k they’ll do the deal with you...”

Don’t be too disheartened. EAs haven’t been able to get into new houses to take photos and so on, potential sellers are just as concerned as some are gleeful at the idea of large price drops and are holding back a bit, but if the dip isn’t too big they’ll be on the market. Plus seeing builders go back and get active on new developments tells you there’s still a market and that activity will help spur on others.

Chin up, it’s not a straightforward process but you’ll get there in the end.

Thank you, it just gets so annoying at times. Especially as a single applicant. Will see how the next few weeks pan out

whatever76

Maz2016 wrote: »

Hi guys. Feeling a bit deflated as well. I’m looking at apartments and duplexes in a certain area. I’m restricted to that area as I want to be close to family. There is a property advertised for 185k, when I rang viewings hadn’t even begun (apart from virtual video on the website) but he already had an offer for 195k in. Second property I was interested in needed a lot of renovations has been sold even though it’s still on daft. I just put together a list of 5 properties I have been following in recent months. It’s a bit disheartening. Is in common that final sales would be 10-15k higher than the listed price?

Property 1
Listed €155k
Sold €165k
May 1st

Property 2
Listed €185k
Sold €200k
Apr 16th

Property 3
Listed €140k
Sold €153k
Apr 6th

Property 4
Listed €190k
Sold 190k
Mar 27th

Property 5
Listed €175k
Sold €190
Mar 18th

Oh I hear you !! I've been that person for nearly 2 years , single buyer like you and had so many ups and downs .... I could write a book ! Engineering reports telling me walk away to bidding wars , cash buyers landed in , Sellers picking other bidder over me even though i had higher bid , dodgy EA v's Decent EA etc . Compromising etc .. Its tough going I tell you that and I had my moments similar to what you going through grant it I didn't have Covid to battle as well so tougher again - all I an say is keep going ( hopefully viewings will start back up again soon) keep saving , have all your paper work ready to go and it will work out ! Found my place late last year and closed up quickly in end so the cosmic alighned which I really didnt think would happen ,I couldnt believe it - its so worth it ! Best of luck - it will work out for you !!