At Blunts, we pride ourselves on making it our priority to ensure your property move is as smooth as possible.
When buying a property with a mortgage, it is important to note that the Lender wants to ensure that their interests are represented, and it is the Conveyancer’s job to ensure this is the case. Therefore, in most cases, Blunts would represent both the purchaser and the Lender in a transaction, occasionally though, the Lender will require separate representation. In this case we would act for you, the client, and another firm would act for the Lender.
There are certain requirements that must be met when buying with a mortgage, please see below our guide to some of these:
The main purpose of a Lender’s valuation is to provide a basic guide price for lending purposes as to the property’s value. As such ensuring that the Lender’s interest in the property is protected by confirming it is worth what has been agreed to be paid. The valuation is not a full survey and sometimes Lenders will not even visit the property, instead carrying out a ‘drive by’ valuation. Blunts would therefore always recommend a homebuyers or structural survey in addition to the Lender’s valuation to ensure there are no structural defects which need to be remedied and may prove costly once you have purchased the property.
If you are obtaining mortgage finance to purchase your property, the Lender will require that you have a local and drainage search. As a cash buyer these would be optional, but they are key documents in the Conveyancing process and reveal important information for the buyer and the Conveyancer to ensure the appropriate enquiries are raised. Information contained within the searches includes but isn’t limited to whether the road is adopted, if the property is in a Conservation area, works done previously requiring Building Regulations and planning applications which have been submitted.
When we raise our enquiries with the seller’s solicitors, it is important to note that any material facts which may affect the Lender’s decision to lend MUST be reported to them. This is due to the fact we must act in both the client’s, and the Lender’s best interest.
Examples of facts which need to be reported include gifted deposits, presence of Japanese Knotweed, recent structural work such as underpinning and defects in title such as possessory title. This list is not exhaustive, we do however need to disclose anything which may affect the valuation, even if the valuation has been carried out already. We cannot withhold this information from the Lender, even if it delays completion.
Draw down of funds
Most Lenders ask for 5 working days in order to draw down the funds, therefore we do need to ensure we have plenty of time to request and receive them. We request the advance for the day before completion and whilst this may incur an extra day’s interest charges, it ensures we are in receipt of completion funds in good time for completion and do not need to wait for these to be received on the day. An additional stress which is not needed!
Following completion, the Lender requires that their interest is recorded on the Title Information Document (TID.) We will register this at the same time as registering you as the new owner of the property which will then mean that both yours, and the Lender’s interest in the property are noted on the title and available to anyone who views the entries. The Lender will have the first legal charge, this is a requirement to once again ensure their full interest is protected. Any subsequent charges which are taken out against the property will hold a later ranking.
At Blunts, we do not charge any additional fees when you buy or sell a residential property with a mortgage.
If you have any other questions or would like a quote for conveyancing please call 01625 429131 or e-mail email@example.com
All this information can be found on our website www.bluntssolicitors.co.uk