Biggest causes of delays in buying process for investors and how to avoid them
Delays in closing on property transactions can be annoying at best, and very expensive at worst. It’s important to try and avoid them if at all possible. So before you pop the champagne cork to celebrate your investment, it’s worth checking that all of the following have been ticked off. Otherwise the bubbly might go flat long before you are able to drink it.
Management companies being slow returning information
If you’re buying a leasehold property then it is often more complicated than if you’re buying a freehold. This is because you are effectively leasing the property for a specific period, rather than owning it. Your solicitor will need to obtain the relevant information from the management company or persons who hold the lease. This includes any relevant costs such as ground rent and service charges, as well as proof of buildings insurance and accounts. Management companies are notoriously slow at returning this information and it can often be the cause of a hold up.
Make it clear from the outset that this is a leasehold so that your solicitor can start the necessary processes.
Third party delays
Your solicitor will go through all the paperwork from the sellers and raise any queries with their solicitor. These could be to do with problems exposed by the survey or discrepancy with the deeds. This often means third parties are involved and this can cause hold ups. Keep in regular contact with your solicitor and be patient, as there is often very little you can do about it.
Local authority searches
These are carried out to uncover any potential problems that could affect your investment. This could be a nearby development of preservation orders. Flood risks and water searches are also carried out. These usually only take a few days but can also take weeks in some circumstances. Make sure you pay the fees for any relevant searches as soon as possible, and keep in touch with your solicitor to make sure they are going through.
Sometimes solicitors are working on many sales at the same time, which often sees yours going to the bottom of the pile. Be polite but try and stress how important it is that your purchase goes through as quickly as possible.
As a rule, these things take time but if you stay on top of everything and apply some gentle pressure at the right time then it can all be fine.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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