The Housebuying process
Working out your budget
The first step is to see a mortgage broker who will give you an idea of achievable mortgage products, an idea of costs and most importantly will help to guide you through the whole process.
Making your Offer
Subject to survey and contract
- When you find a property that you want to buy
The price that you agree on with the vendor is your offer. However, if you make an offer in writing it is advisable to head your letter ‘subject to survey and contract’, which means you are not obliged to proceed until you have had the property surveyed and the contracts for the sale are signed and exchanged.
At this point you should establish what is included in the sale price, for example, carpets and curtains.
Establish if you will need to pay a holding charge, particularly if you’re buying a brand new property.
- What happens if someone else wants the same property?
In England and Wales, the seller can accept other offers up to the point that contracts are exchanged, so even when your offer has been accepted, someone else can still make a higher offer than you and the seller can accept it – this means that you have been gazumped.
- If the seller accepts another offer, you could make a higher offer or match the offer of the other buyer.
- If the seller then decides to accept both offers, the property will usually be sold to the first buyer ready to sign the contract (a contract race).
- In Scotland gazumping is not permitted.
Surveying your options
What is right for you?
Before you agree to buy a property, it’s usually prudent to arrange for either a home-buyer’s survey and valuation or a building survey to be carried out on your behalf if appropriate. A survey is optional but it will provide you with peace of mind and details of any problems with or work that needs to be carried out on your property.
Types of survey available
 Home-buyer’s survey and valuation
Will give you an appraisal of the property’s general state of repair
Carried out by a member of the Royal Institution of Chartered Surveyors (RICS)
 Less comprehensive than a building survey
The surveyor will not inspect inaccessible parts of the property or areas which are not already exposed
Building survey
 Extremely detailed report
The surveyor will cover all accessible parts
Will provide comprehensive information about the construction, any defects and what repairs are needed
Carried out by a RICS member
Newly built homes
 Most new homes have a National House Building Council (NHBC) Certificate, Zurich Municipal Certificate or Premier Guarantee
 These warranties cover major defects in new properties which ensure that it is fit to live in and structurally sound
 They cover problems such as collapse or serious distortion of floor joists or the roof
Specialist reports
A specialist report will identify specific problems for example, woodworm or dry rot.
Appointing a solicitor
What a solicitor does
The legal term for buying and selling property is conveyancing and a solicitor or a conveyancer will need to be appointed to do this work.
As well as acting for their client, a solicitor will:
 Carry out all the legal work required, including checking the contract and dealing with the local authority and Land Registry
 Usually deal with the lender’s legal work, such as registering their interest in the property.
 Most lenders will use your solicitor as it saves you and them money
 Confirm what’s included in the sale, for example, fixtures and fittings
 Make sure buildings insurance is in place at exchange of contracts
The solicitor will carry out a search of the local area
They will ask about:
 Plans for new roads
 Planning consents
 Anything else that could affect the value of the property
Details of which mains services are connected. The local authority will charge for providing this information and this cost will be included in your solicitor’s bill
The solicitor will ask the vendor questions about the property
This will determine:
 Whether any alterations have been made
 What fixtures and fittings are included in the price
 Who is responsible for the boundaries any other relevant information required
Exchanging contracts
When the contract terms are agreed and your solicitor has received satisfactory replies to their questions, the contracts can be exchanged. Once each party has a contract signed by the other, the contracts are binding.
The signed contract will include a completion date (the date the property will become yours).
If you are selling as well as buying, your solicitor will usually co-ordinate things so that completion of your sale and purchase happen on the same day.
Your deposit has to be paid to the seller through your solicitor at the point of exchange.
You also need buildings insurance and life cover to protect your family from the point that contracts are exchanged.
When you have exchanged contracts
 Land registry
Your solicitor will have been given a copy of the Land Registry Certificate for the property at the start of the process, but to make sure that no new rights have been granted or created by the vendor since that time, your solicitor will do a final check.
 The Transfer Deed
Your solicitor will prepare this before you complete your purchase. This is the document that will be used to record you as the new legal owner at the Land Registry.
Completion
When your solicitor has completed the Transfer Deed, it will be sent to the vendor’s solicitor. On the day of completion it will be produced, along with the Land Registry Certificate and keys to the property.
Your solicitor will arrange for the Transfer Deed to be stamped. The price of the property will determine how much stamp duty is payable (a Government tax). This will be collected by your solicitor as part of the total legal fees.
After stamping, the Transfer Deed is sent to the Land Registry to record you as the owner and to register the lender’s interest as a ‘mortgagee’. (You are the ‘mortgagor’).
Things to remember
Pre move checklist
Removals
Most professional removal firms are members of the British Association of Removers so they are protected by the Association’s code of practice.
Charges can vary considerably. Ask a few firms to come to your home, assess what will be involved in the move and get a quote – in writing.
Arrange your move as far in advance as possible to ensure you can move when you want to and if you do use a professional removal firm, ask them for packing boxes before you move.
Before you move:
 Arrange for your existing telephone line to be disconnected. Ask for this to happen at a specific time on the day of the move and if possible request to have the telephone number transferred to the new property.
 Redirect your post. For a small charge, the Royal Mail will redirect your post to your new address.
 Settle paper and milk bills.
 Run down your freezer so you can defrost it or, if you don’t want to defrost it, turn it up a couple of days before you move to freeze the contents as deeply as possible.
The day you move:
 Read the meters at your old and new home.
 Don’t pack everything! Keep a few essentials handy – mugs, kettle, and tea, washing up bowl, vacuum cleaner, bin bags and light bulbs.
Check that you have let everyone know your new address
 Accountant/Financial adviser
 Bank
 Building Society
 Catalogue companies
 Clubs and societies
 Credit card and store card companies
 Dentist
 Doctor/clinics
 DVLA (driving licence)
 DVLC (vehicle licence)
 Electoral role and council tax
 Electricity company
 Employer
 Gas company
 Gym/leisure centre
 Inland Revenue
 Insurance/pension companies
 Library
 Loan providers
 Motoring organisation/services
 National Savings
 Optician
 Premium Bonds
 Schools/colleges
 Subscriptions including cable/satellite TV, magazines and Internet provider
 Telephone/mobile phone companies
 Trade Unions and professional bodies
 TV Licensing Authority
 Vet
 Water company
 And don’t forget to tell your family and friends!
To discuss your specific property requirements, please e-mail or contact us to arrange a meeting.
Your property may be repossessed if you do not keep up repayments on your mortgage.
For mortgage advice you can choose how we are paid: pay a fee, usually 0.5% of the loan amount, or we can accept commission from the lender.
Levels and bases of, and reliefs from, taxation are subject to change.
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