Purchasing a new home is an exciting yet sometimes daunting experience. For the majority of people, a house is the single largest investment they will ever make. Additionally, there are numerous formalities and legal requirements that many people are unaware of. Blackstone solicitors have a wealth of knowledge and will guide buyers through the entire process in a measured and cost-effective manner. Additionally, we are experienced help to buy solicitors if this is your first property purchase under this scheme. We recognise that you may be unfamiliar with the terminology frequently used in the home buying process, and as such, we will proceed at your pace, ensuring that you understand and approve of everything throughout the process of purchasing your new home.
In this article, solicitor when buying a house, we take a look at the steps involved in buying your new home.
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What are the steps involved in buying a house?
- Save for a deposit and apply for a mortgage in principle
Before you begin looking for a home, you must find a mortgage lender and obtain pre-approval for a mortgage – a stage that a mortgage advisor may assist with. When it comes to selecting a mortgage advisor, it’s frequently a good idea to rely on recommendations from colleagues or friends who have had a positive experience.
The broker will evaluate your total financial status and provide advice regarding the best sort of mortgage for you. Once you’ve submitted your information, you’ll be subjected to credit checks before a mortgage lender makes you an offer in principle — a letter indicating the amount of money you can borrow. The offer in principle will both define your budget for your house and is required by a seller to accept an offer. It is worth remembering that mortgage pre-approvals are good for 90 days, so do not apply too much in advance of your house search. If you can’t find a house within this period, keep in touch with your lender and they should be able to extend the offer period.
In terms of a deposit, the down payment required to purchase a home is typically 5% of the total price of the property. For instance, if a house is listed for £200,000, you would need a minimum of £10,000 in savings to qualify for a mortgage. Although 5% is frequently considered the minimum deposit, it would be wise to save as much as possible, as a larger deposit typically results in lower mortgage interest rates.
- Start house hunting
This is the enjoyable part ! You may now begin searching for your ideal property. Rightmove or Zoopla are two popular websites for house hunting, with estate agents regularly publishing new properties on both. Additionally, you should consider registering with an estate agent covering the area you would like to live in. Registering is completely free and will not bind you in any way. Maintaining contact with local estate agents may help you find your ideal house, as agents occasionally contact registered purchasers prior to selling a property online.
Booking house viewings can quickly become daunting, particularly if you wish to view many properties. Despite this, it is critical to view properties in person as well as online. Seeing a house in person can provide a much more accurate representation of it than viewing it on a screen.
- Instruct an experienced conveyancing solicitor
While house hunting, you should seek the advice of a conveyancing solicitor. While their work cannot begin until you submit an offer, knowing who you will deal with and briefing them in advance may accelerate the legal process once you submit an offer. This considerably reduces the risk that your offer will be rejected or you will be gazumped. Gazumping occurs when you have an accepted offer on a house but the seller decides to sell the property to another buyer who has made a higher offer. A conveyancing solicitor’s role is to aid in streamlining the process by performing property searches on behalf of a buyer and providing legal contracts and advice. Because the service they perform is critical, choose your conveyancer carefully and do not simply go with the lowest. Generally, you get what you pay for.
One of the first phases in the property conveyancing process is for your solicitor to study the draught contract and any supporting documentation and to call the seller’s solicitor. You will be expected to check the seller’s documents, including the TA6 form, and to communicate any issues or queries to the solicitor.
You’ll want to verify the tenure of your new property, specifically: is it leasehold or freehold? Leases of fewer than 80 years present difficulties; they can be costly to renew, and you must have owned the property for at least two years to qualify. Less than 60-year leases should be avoided.
There are some things you may not know about the house based on estate agency viewings or even a survey. A conveyancing solicitor will conduct a series of legal property searches as part of the conveyancing process to verify there are no other considerations to be aware of. Certain searches are advised by the solicitor for all acquisitions, while others are required by the mortgage lender to safeguard them against potential liabilities associated with the property.
These property searches include the following:
- Local authority searches: Is there talk of building a road in your new garden? How about radioactive gas?
- Checking the Land Registry’s ‘title register’ and ‘title plan’ — these are the legal documents establishing the seller’s ownership. Both checks are necessary by law in order to sell.
- Flood risk assessment – this can also be done at the Land Registry. If you already have an environmental search, you may not need to purchase this one separately, as the environmental search will have far more detailed flood statistics and maps.
- Water authority searches – ascertain how your water is supplied and whether any public drains on the site may impede extensions or construction work.
- Chancel repair search – to ascertain that there are no lingering mediaeval liabilities on the land that may be used to fund church repairs. However, for just £20, you may opt for Chancel repair insurance. The statutes governing Chancel restoration were amended in October 2013, and the Church is now responsible for establishing and filing liability with the Land Registry.
- Environmental Search – this report, which is produced by either Landmark or Groundsure, is used in the vast majority of transactions. Depending on the product your solicitor often employs, the report will include information regarding polluted land on or near the property, landfill sites, previous and current industries, comprehensive flood estimates, radon gas hazards, and ground stability concerns, among other things.
Optional and area-specific searches — Depending on the location or kind of property, or on the buyer’s unique concerns, further searches may be required or advised. These may include the following:
- Cornwall’s tin mining investigations
- Explorations in various locations of the United Kingdom and Cheshire Brine examinations
- Additional local government concerns include public paths, pipelines, noise abatement zones, and common land.
These property searches are frequently charged as additional expenses, so be careful to figure them into the conveyancing fees.
- Make an offer
Choosing an offer price for a house can be rather difficult. While it is customary to make an offer below the asking price and then negotiate with the seller, if multiple parties are interested, you may need to make a higher offer.
Certain individuals, including the estate agent, may persuade you to make an offer on a home at your absolute maximum. Carry out your own research on the asking prices and also actual sold prices of similar properties in the area. Rightmove will allow you to do this free of charge just by entering a postcode of your desired area.
Once you have decided upon the size of the offer you would like to make, you must contact the estate agent or the private seller and inform them of your willingness to pay for the house. Four the purchase to proceed, there are a number of factors that should be borne in mind:
- That the lender assigns a fair market value to the property in accordance with the seller’s asking price.
- Acceptance of your mortgage application (a pre-approval does not guarantee acceptance).
- That the seller does not withdraw the property from the market due to a change of heart.
- That no other buyer makes a higher offer.
Once your offer has been accepted, contact your mortgage lender as they will want to do their own appraisal of the property. This is to ensure that the residence is worth the price you are offering and that their investment is secure.
- Instruct a surveyor to carry out a survey
Property surveys aid in establishing the state of the structure and identifying structural problems. While surveys are optional, they are frequently advised because it is important to be aware of any defects prior to making an offer and budgeting for any necessary repair work. If the survey finds that extensive repairs are necessary, you may be able to negotiate a reduced purchase price or have the seller remedy any faults. Bear in mind that the appraisal conducted by your mortgage lender is frequently just for the purpose of determining a loan valuation. They are frequently quite superficial and not for your benefit (you cannot rely upon it – only the lender can), and for complete peace of mind, arrange for a survey to be conducted.
- Allow time for the report on title
When you are ready to proceed with the purchase, your conveyancing solicitor will manage the legal procedure of transferring property ownership. As mentioned above, this involves submitting local searches to the appropriate authorities to ascertain whether anything could affect your home’s costs or enjoyment. They’ll also perform additional investigations to establish property boundaries, access rights, and the existence of any pending disputes, correspond with the seller’s solicitor, apply to the Land Registry to document the transfer of ownership, and manage any other legal difficulties that arise.
Read the report on title given to you by your solicitor and discuss anything with them that you are unsure about.
- Exchange contracts
After your offer is accepted and your mortgage application is approved, the next step is exchange of contracts.
Your solicitor will request payment of a portion or all of your deposit (often 10% of the purchase price) near the time contracts are exchanged for the purchase of the property.
You should have property insurance in place at this point so speak to your insurance broker in advance of this. If you choose to go with an online insurance company, or price comparison type arrangement, read their fine print very carefully. It is all very well getting insurance cheaply, but you will discover its true worth when you actually need it.
- Completion
Completion is the final stage of the purchasing process. This is where the seller’s outstanding balance is paid, ownership is transferred, and any remaining taxes (such as Stamp Duty) are paid.
It is at this point that you can move into your new home.
How we can help
We have a proven track-record of helping clients purchase a new home. We are a multidisciplinary firm and have all the expertise inhouse to satisfy the most exacting requirements of our clients. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Residential Property Solicitors
It is important for you to be well informed about the issues and possible implications of buying a residential property. However, expert legal support is crucial in terms of ensuring a positive outcome to your purchase.
To speak to a member of our New Enquiries Team today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
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