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The Solicitor
The Mortgage Adviser
I’m buying a house that has double glazing but the current owner doesn’t have a Fenestration Self-Assessment Scheme (FENSA) certificate. Should the seller arrange for a certificate or should I get indemnity insurance? Ideally, the seller should arrange for a certificate, as that provides a guarantee that the windows have been installed correctly and in compliance with building regulations. Insurance is the second-best option as it provides a means of claiming compensation if the installation wasn’t done properly and enforcement action is taken by the local authority. I’ve agreed a sale on my property. I’m worried that, due to the buyers’ constant delays, they are going to pull out. Can they do this and will I be liable for costs? Yes, the buyer can pull out without being liable for compensation or penalty up to the point of exchange of contracts, as can you, the seller, if you change your mind or your situation changes. This is one of the main drawbacks of the English system of conveyancing. There have been many attempts over the years to change this or to protect the parties in some way but none have stuck as the changes themselves usually come with their own disadvantages. These questions were answered by Tim Jordan of Forshaws Davies Ridgway solicitors. For further advice, call Tim on 01925 230 000
I’ve seen lots of houses for sale offering cashback on completion. How does this affect getting a mortgage? A builder on a new-build property normally offers this benefit. The main reason for this is that they will be looking to pay the 5% deposit or a contribution to the deposit to help the buyer to get a mortgage and complete the sale. This is a common occurrence and most lenders are happy with this arrangement, provided that they do not exceed the standard 5%. This can help greatly, as the bigger the deposit, the more competitive the mortgage rate. The reason for this is that, due to the current climate, we need to be mindful that the purchase price is realistic for valuation purposes. I’ve decided to rent my own home out and move to a new property. Do I need to change my mortgage? Each person has a different situation but, strictly speaking, you need to inform your mortgage lender, as this will affect your application for a new mortgage on your new property. The reason for this is that most lenders use affordability calculators but if you have a buy-to-let mortgage the tenant is technically paying the mortgage and they’ll accept this. If you decided to keep the mortgage as it is this could affect the affordability calculator, as you will have to prove to the new lender that you can afford to pay both mortgages. The estate agent for a property that I’m interested in buying asked for a ‘mortgage promise’ to ‘qualify’ my offer – what does this mean and how can I get one? ‘Qualify’ means that a Financial Adviser has submitted your details, with your permission, to a lender to ensure that you have the capacity to purchase the property. Once this has been done, then you have been qualified as a potential mortgage borrower. This doesn’t guarantee that you have the mortgage though, as there will be other checks and a satisfactory valuation of the property to be done. These questions were answered by Andrew Mason, Financial Adviser with Kidd & Co. (IFA) Ltd. For further guidance on these questions or on any other matters that you may have, call Andrew on 07793 202 306 or 01925 212 077, or send an email to andrewmason@kiddandco.co.uk Your property may be repossessed if you do not keep up repayments on your mortgage or other loans secured on it
Kidd & Co. (IFA) Ltd Independent Financial Advisers
July–August 2009 | Issue 3
29