With everyone so busy, and delays from all angles it seems, it’s more important than ever to ensure that we are as proactive as we can be to keep it running smoothly…
First up… EPCs!
You now need a valid EPC for all term mortgages, residential and commercial.
Some lenders will now give you a discount on rate and/or arrangement fee so it is in your interest to have a new one carried out if you have recently carried out a refurbishment.
So please ensure you have a valid EPC (A-E) to ensure completion is not held up.
Planning and building regulations
The lender’s solicitor will want your solicitor to confirm that all planning and building regulations have been signed off before the completion of term mortgages.
Please ensure that this is the case, and if there are any areas that could present an issue then tell us immediately so we can help resolve them or use a lender who would be happy to use title insurance and avoid the issue!
Engage with your broker early!
It can take a week or so for an AIP, and then another 3 weeks to book a valuation so you need to give yourself enough time.
Rates are also changing so much at the moment, and they are only going one way! So get your application in early to secure your rate.
Don’t instruct your solicitor until you have an AIP from a lender
Most lenders have a small panel of solicitors they will use, and most offer a ‘dual representation’ service where they can use one company to act for you and the lender.
So speak to your broker as they may have a preferred company to use out of the panel.
This will avoid unnecessary costs of searches with the wrong company – and many lenders don’t need searches anyway.
Be prepared for it to take longer than you expect!
We used to comfortably be able to complete it in 8 weeks but it taking at least 12 weeks at the moment.
we can mitigate some of this by starting early, but legal is taking a long time!
Make sure you are factoring in this time with bridging/investor finance, as well as the plans you have for these funds.