How Long After Authority To Exchange (And why)?

Exact Answer: 28 days

Authority to Exchange or ATE is a part of the Help to Buy scheme of mortgage loan providers that aids home seekers find financing for their dream homes. This equity loan scheme allows buyers to borrow up to 20% of their property purchase price.

After consulting one’s financial advisor, an individual can apply for the loan if he matches the eligibility criteria. This step is followed by an Authority to Proceed order from the Help to Buy office. An ATE follows within 5 days of Form one being processed. ATE stands for the authorization to exchange contracts with the buyer and sellers as the loan has been sanctioned.

How Long After Authority To Exchange?

Securing a home mortgage is a lengthy process. They are several bureaucratic procedures that need to be completed before one can acquire the lease to one’s dream home. However, in the United Kingdom, the Help to Buy equity scheme is one of the most streamlined and preferred methods of acquiring a home loan.

Usually, there is a waiting time for the applicant after he or she has filed Form one under the Authority to Proceed mandate. This time period for most individuals will be around 28 days. Sometimes it may be a little more than this ballpark period, but one can be certain that it will fall within 35 days.

In some cases, when the solicitor of the client is unable to finalize the contract and file the requisite papers, he or she will lose this ATE status. In such a scenario, the individual will have to begin the process of applying for the loan from the very beginning. Here, completion of the deal will definitely not happen with 28 days of the Authority to Exchange mandate.

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However, it is always better to contact your solicitor when filing for the loan. It is also prudent to discuss all the details of the contract beforehand so as to complete the procedure with 2 to 3 weeks of ATE. The fixed time span of waiting may also change according to the predicaments of the government employees and the office processing the requests. Thus, always discuss the specifics of your case before you move into filing the request.

In Summary:

Form TypeTime Period of Waiting
Normal  Form28 days
Expired FormMore than 28 days

Why Do You Have To Wait So Long After Authority To Exchange?

Since a bureaucratic organization has to scrutinize all loan requests, it is quite normal that the applicants have to wait for the arrival of their ATE notifications. There are thousands of applications that have to be screened and approved. The entire process becomes lengthy due to the office work that’s involved.

Once arrived, the applicant must move to finalize the deal within 28 days. this time period is more or less a given because if the individual does not want the loan or has for some unforeseen reason backed out from the deal, then the Help to Buy organization can consider another applicant for the amount.

This is done with the rationale of streamlining the process of buying a home. The organization works with a zeal to forward the cause as swiftly as possible. Alternatively, one can face a minor delay in receiving the ATE notification from the organization because of national holidays or oversights. This can also delay the process of ATE completion.

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However, generally, if such errors of oversight have been made by the organization, then one can hope to get the entire 28-day period despite the delay. No extra days will be deducted from his stipulated timeframe for finalizing the contract.

It is best to always call the helpline number stated in the information pamphlet if one feels that his documents are up-to-date and proper but there is an unnecessary delay in ATE arrival. It is always recommended that attention be drawn to the issue as this may be a matter of bureaucratic oversight.

Conclusion

As the home loan markets are becoming increasingly competitive, government and private agencies around the world are simultaneously trying to plan new and ingenious ways of reducing interests and making equity borrowings more egalitarian for the debtors.

ATE is a provision that allows the borrower to file the final contract for the loan under the Help to Buy scheme in the UK. It grants the applicant’s solicitor a period of 28 days from the issuing date of ATE to file the sacrosanct papers. If this period is over without the solicitor filing the papers then the entire process has to be restarted.

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References

  1. https://www.ucl.ac.uk/bartlett/construction/sites/bartlett/files/affhoupaper_carozzi-hilber-yu.pdf
  2. http://eprints.lse.ac.uk/75739/