Asking Questions

If you’re looking to buy a new property, my advice would be to Do Your Research!

Ask questions, ask questions, and then ask more questions. 

Recently, during what I thought was a standard mortgage application process, we discovered that a freehold property has a management company involved. 

In another example, recently we discovered that the conveyancer involved in the original purchase had added (as a measure to try and reduce the possibility of mortgage fraud and property fraud in the future) a restriction on the property’s title.  This restriction meant that enhanced ID checks were needed to be carried out by the re-mortgage conveyancer. 

Neither of these discoveries necessarily affected the mortgage, but it meant in both cases, the conveyancing costs were a few hundred pounds higher than had been initially anticipated. 

In addition, a few extra days were added onto the legal process.

In the case of the re-mortgage this resulted in another unanticipated additional cost to the client.  They were ALREADY on the current lender’s standard variable rate of interest (paying a higher interest rate than they should have been) and needed to complete onto the new fixed interest rate as soon as possible. 

So, what kind of questions should you ask?

You’re entitled to ask ANYTHING!

In the first instance I mentioned earlier, the sale was a private sale rather than through an estate agent. 

It’s possible this situation may have been avoided* if the property was being sold through an agency as the agent will ask several questions of the vendor about the property which may have brought this to light.

In the 2^nd instance, the property owner wasn’t aware of the restriction on the title because either they hadn’t remembered it, or perhaps the reason behind the restriction hadn’t been explained to them properly in the first instance. 

*Please note: in both of these situations, the additional costs couldn’t have been avoided.  However, knowing about and anticipating the additional costs up front would have avoided both clients the stress and hassle of having to find the extra money less than 2 weeks before completion.

If you’re looking at a leasehold property:

• How long is remaining on the lease (a low lease may mean the property will be more difficult to mortgage)
• How much will you pay in ground rent and service charges?
• If the property price seems low – go back to point one.  Is it being sold cheaply because it’s difficult to mortgage?

If it’s a new build or relatively new build:

• Is there a free holder?
• Are there any annual charges you need to be aware of?
• If there is a freeholder, what are the implications?
• Does the property have a valid NHBC or Zurich certificate (building guarantee)

If the property’s obviously been extended:

• Was planning permission granted?
• Does the extension comply with relevant building regulations?

If the property’s terraced with back gardens:

• What rights of access do the middle properties have over the properties on the end?

If you’re buying a buy to let:

• What is the rental income you can expect to achieve?
• Is there an Energy Performance Certificate?
• Is there a tenant in situ already?

If the property’s been on the market for a while:

• Does the agent know why?
• Have they had any previous offers?
• If so, what happened?

This is likely to be the biggest investment of your life, to date.

Do as much research as you would if you were buying a new phone or getting a new car.

A mortgage adviser will help you identify some of the questions you may like to ask, explain any complexities and help guide you through the buying and mortgage process.

If you need any help, please get in touch for a no obligation consultation with either myself or Suzi.

Heide x

For a no-obligation initial review of your mortgage, why not get in touch?

Tel: 01525 309300

Mobile: 07903 302895

Website : www.heideswiftfinancialplanning.co.uk

Email: heide.swift@sjpp.co.uk

Your home or other property may be repossessed if you do not keep up the repayments on your mortgage.

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We offer a comprehensive range of first charge mortgages from across the market that are made available to mortgage intermediaries for which we are paid a procuration fee by the lender.