Buying your home

Buying and selling houses can be one of the most stressful experiences in life. However there are certain processes that can greatly reduce this stress and help towards a controlled and successful purchase. We recommend the following:

  1. Organise your finances – Find out exactly how much you can borrow, and what type of borrowing will best suit your circumstances. This can be done on-line or through a financial advisor; often for free. When organizing your funds remember to include provision for:
    • Deposits
    • Surveys
    • Solicitors fees
    • Mortgage fees
    • Removal costs
    • Stamp duties
  2. Requirements: Identify and prioritise your key requirements towards the purchase. These may include location, number of bedrooms, property condition, outlook and elevation, age, parking, room size, proximity to transport links, schools and amenities, etc
  3. Register your interest with estate agents, and maintain sensible, polite contact. Ensure they have your full and correct contact details, and an understanding of your requirements and buying position.
  4. Be Open Minded: Keep an open mind and be prepared to view – You may never find the perfect property, and may have to compromise certain factors on your wish list. Remember, what you lose in one area you may gain in another! Particulars alone don’t provide enough information to make a valued and informed judgment. Only by viewing can you tell if the area and the “feel” are right for you.
  5. Offers – Put your offer forward in writing to the agent. This not only demonstrates your serious intent, but also highlights your organized and attractive buying position.
  6. Solicitors: Choose a recommended firm – it is important that your solicitor maintains good communication with both you and the vendor’s solicitor. Most agents will have a list of solicitors who have successfully dealt with their previous sales.

    7. Types of ownership

    There are four types of ownership:

    1. Freehold: Gives you complete ownership until point of sale.
    2. Leasehold: Gives you part ownership, with a right to live at the dwelling for a fixed period (generally 99-125 years) A landlords freehold to the building doesn’t allow them any access rights though. There can be rents to pay and service charges.
    3. Commonhold: Exists when you buy out the landlord. There can still exist shared areas and services.
    4. Shared Ownership: Generally aimed at low income buyers, providing a ‘part-owned part rented’ scenario. Usually there are opportunities to increase your share.

    Legislation on cash buyers

    The money laundering legislation insists that agents follow certain criteria when dealing with cash buyers. This includes gaining adequate proof of funds and specific identification from buyers. This will be logged, and any suspicions have to be passed on to relevant bodies. Beware if you are falsely claiming to be a cash buyer.

    Stamp duty thresholds

    As a purchaser you will be laible to pay tax on your purchase, dependant upon the value of the home you purchase. The thresholds are as follows:

    1. £0-£125,000 = 0%
    2. £125,000-£250,000 = 1%
    3. £250,000-£500,000 = 3%
    4. £500,000+ = 4%

    It is worth noting, these amounts are payable on the entire value of your purchase. Ie, a purchase at £265000 is liable a 3% levy on the full amount; totaling £7950.

    The agents role to the buyer

    An estate agent works on behalf of and in the interest of the vendor. They do not work for the purchaser, nor can they lead their offers or show favour to them. The agent should act fairly towards purchasers and without bias. The agent cannot, for instance, discount an offer because that purchaser has their property for sale with a separate agent.

    Surveys

    The purpose of the survey is to highlight any work that may be required or deficiencies with the property, and also to let any lender know that the property is worth the agreed price and is re-sellable.

    The three types of survey generally available are:

    1. Valuation – conducted by a specialist surveyor to ascertain the properties value and how secure a loan might be against the property.
    2. Homebuyer – Generally used for properties built within the last 150 years or of reasonable condition. It should detail any problems that might affect the properties value.
    3. Structural – A more detailed report providing information on the construction and condition of a building. This report is particularly useful when buying very old or dilapidated properties, or those that have undergone major alterations.

    Moving cost

    • Deposit
    • Surveys
    • Stamp Duty
    • Searches
    • Solicitors Fees
    • Removal Costs
    • Mortgage arrangement costs
    • Initial Repairs
    • Connecting utilities

    Exchange of contract

    Once you exchange contracts you are legally bound in to that particular property sale, and it can be very costly to pull out of a sale after this point. It is advisable, once all appropriate surveys and searches have been carried out, to move to exchange as soon as is possible to avoid any hold ups.

    Completing the sale

    The sale is complete after all relevant surveys and searches have been carried out, terms are agreed, contracts have been exchanged and funds have been transferred. At this stage you legally own the property and can collect your keys. Congratulations!