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New build

New build

How to go ahead with financing modular homes

02/02/2017

Modular homes are homes that are built offsite and are physically fitted together on site of your choice. Often called as prefabricated home, their popularity is on the rise because they are cheaper, faster and customised. While they may not be built from ground up with foundation, they can be constructed to withstand high weather impacts.

In financial terms, they have similar rates of home loans, insurance premiums and taxes as site-built homes. And conveyancing of these home are performed similar to regularly built properties. As modular homes can be highly customised as per your need, there is much consideration you have to make. Financing your modular home is one of the first step in the process. These steps will help financing modular homes.

Prequalification Estimate

The first step is to calculate how much money you are going to spend on your modular home. These estimates are required to get approval from the bank for the loans. They will assess your calculations and let you how much they can lend you with the interest rates for the amount.

Comparing rates

As you are financing your home, it is recommended to check a few banks to see what their interest rates are like. You will need to search for a bank with interest rate you are comfortable with. The small difference in the rates can amount to huge sums of savings in mortgage payments.

Apply for Loan

After you have chosen the land where your home is going to be built and a particular modular home plan. You will need to apply for the loan with the bank of your choice. Several verification checks are done to check the cover for the fees like credit check, proposed contract of the modular home of your choice, recent loan statements and other details.

Approval

If the application process goes smoothly, you will be sent a letter of commitment from the bank. You can now show the letter to the modular home manufacturer or the landowner to let you buy the property and home. The commitment letter will contain conditions and restrictions you need to comply with. You may need to provide blueprints, and costs estimate before the loan can be closed.

Scheduling Disbursement

As your mortgage loan is approved, you need to schedule the amount you have to pay during the construction of your home. These include clearing of the land, the building of the foundation, the arrival of the modules to the site, and finishing the construction. As every milestone completes successfully, you have to make sure the vendors are paid. If everything checks out, the bank issues a check which you can use to pay the contractor.

Closing the Mortgage Loan

You will now show the disbursement schedule and clear other concerns from the bank like building permits. This will conclude the bank to sign the final documents approving your mortgage loan. You will need to pay for the closing costs involving lawyer fees and title fees. You will need to pay Construction loan payments and then permanent mortgage loan payments after the construction completes.

Construction of your modular home

Finally, with all documents settled, the manufacturer can start building your modular home. For every milestone reached, you will need to pay out vendors as per the disbursement schedule. You will also have to start making payments to the bank for the amount which has been disbursed. So the fees will increase as it progresses. If the construction time is condensed to 2-3 months, you will minimise the construction loan payments to the bank.

Transfer of Construction Loan to a Permanent Mortgage

When the construction completes, the bank assesses the house. After satisfactory inspection, the loan is turned into a permanent mortgage. As per your mortgage agreement, you will have to continue paying the payment for the interest and principal. You will need to pay transfer fees during the process.

This is how financing modular homes is done in the United Kingdom. You will have your perfect home for your family in the shortest time possible without the long wait and mess you have to deal with on-site home builds.

The process of buying a new build property

04/01/2017

The process of buying a new build property is slightly different from conveyancing of a fully built property. Conveyance of a new build property starts before the property is fully built. This means that the duration of conveyance cannot be stated as a fact. Most sellers usually give the completion date to be ten days after completion of a structure. The duration of the finalisation of the structure remains variable. The similarity between conveyances for newly built properties and that of other properties include involvement of solicitors, adherence to laws regulating soliciting, and exchange of ownership documents at the completion of conveyance.

There are four basic steps in conveyancing new build properties. These include reservation, actual conveyance, and exchange of contracts and completion of the sale. These stages of conveyance do not rigidly progress from one to the other. Some of the steps follow each other while others overlap. For example, a buyer can hire a solicitor during the reservation stage. Reservation fees can also be paid during conveyance. The stages of exchange of contracts and completion of sale are relatively fixed and rarely overlap with others.

Sale of property under construction begins with reservation. Newly built properties are usually placed in the market for sellers to see. A seller identifies a suitable property and contacts its owner. This occurs when the property is still being constructed. He can find out about the owner by calling a listed number or finding out the address of the owner of the construction company.

The buyer and seller then discuss the possibility of exchanging the property. Once they agree on the price of the property, the buyer reserves that property for himself. This involves a completion of a reservation form that states the prices of the property at the date that the buyer and seller will exchange transaction contracts. The buyer must pay a reservation fee. This fee is paid to the new developer. It is usually about £500. Termination of reservation marks the time when the property is officially removed from the market. It identifies the prospective buyer as the sole candidate to purchase the property. Reservation can be annulled if the buyer and seller fail to exchange contracts at the stipulated date. The buyer loses the reservation fee and any deposit that he may have made on the property.

Conveyance process begins after reservation of the property. Both the buyer and seller hire solicitors to help them with the conveyance. The solicitors role include researching and filing of documents related to conveyancing. Any inquiries regarding the property are raised by the solicitors. The buyer may seek financial help from mortgage lenders at this stage.

Exchange of contracts occurs after the buyer and seller have agreed on the terms of sale. The buyer must pay a deposit on the property which is usually 10% of the price of the property. The buyer is now obliged to purchase the property. Both the buyer and the seller exchange a signed agreement detailing the terms of sale. Property transaction ends with the completion of conveyance when the buyer pays the seller full value of the property. This usually happens ten days after completion of construction.

Buying a house – conveyancing to get a new home

30/05/2016

A new house is everyone’s dream and they do not worry about anything else except the decision that you have to make while choosing to buy the house. Firstly, a house can be purchased via various ways. They can be bought over instalments, over mortgage or loan and also by down payment of cash. In fact, buying a house is easy and as you look ahead after you have saved quite the sum of money, it is now important for you to get a guideline on how should you buy your new home. What are the rules and regulations?

For the people living in the UK, they have to follow a certain law while acquiring a property. This law is known as the English property law and this law makes it mandatory for the property buying to be done by the process of conveyancing. Conveyancing is the process through which the ownership of a property is transferred from one party or owner to another. In fact, the process of conveyancing involves all types of property whether it is personal or residential or commercial. In fact, leasehold properties and rental properties is also need to be acquire by conveyancing.

Who can conveyance?

Conveyancing can be done by anyone who has the minimum knowledge of the way the process works. This involves knowing what the necessary documents are and what documents are required, which forms are to be filled first and which are to be filled later. The documents processing require a minimum fee ranging from upwards of fifteen hundred pounds to more than five thousand pounds depending on the type of property that you are purchasing.

Anyone who has passed the licensed conveyancer course becomes a licensed conveyancer and can professionally and legally handle the document processing with no restrictions. However, not everyone are good conveyancers. A good conveyancer is one who has many years of conveyancing experience and has handled many properties over time. In fact, a newly licensed conveyancer might not be the ideal choice but a conveyancer who has been doing it for a long time can be.

Lawyers who conveyance are known as conveyancing solicitors or just solicitors. They are more adept to the ways by which properties are bought or sold and can give professional as well as personal advice that can benefit. They mostly do commercial conveyancing but also do residential conveyancing. Compared to just conveyancers, their service charge is usually higher.

What and how to buy your house?

For residential conveyancing to commence, there are steps that needs to be completed before that. Firstly, you need to do adequate research. Researching is getting the necessary information about what the price includes. The apartment or the villa or the small home that you are planning to buy has a price on it. You need to check if the lighting, fitting of different materials inside the house come under this cost or not.

This is because some property agents offer prices that does not cover such costs but only cover the cost of the house and all. Thus, this is very important indeed. Next, if you are buying a newly built property, it is important to check if the developer has followed the Consumer Code for Home Builders or not.

This code is a guideline that builders and developers need to follow when building a new property. Therefore, if your real estate agent or the developer did not follow this code it is best not to buy property from them. On the other hand, the other things that must be checked includes what does the warranty cover actually cover for your home. In the future, there might be problems regarding your home or any of its fittings. Therefore, doing this research and finding if the cost covers this or not is a must that you should not miss.

In the UK, there are many conveyancing agents who do conveyancing for new and old properties that includes residential conveyancing, house conveyancing and also commercial conveyancing. It is indeed in your best interest to choose an experienced conveyancing solicitor that can help you buy your dream home with zero hassle.