Step by step guide to buying a property
1. Decide if you should sell first. If you are already a homeowner, it can seem risky to sell first, but there are upsides. In particular, you will be able to pounce quickly when you find the house of your dreams, and won’t be trapped in a chain.
2. Decide on your budget. This might be dependent on how much of a deposit you can get together. Don’t forget the variety of one-off and ongoing hidden costs, these can put an extra 15% on the cost of your home; more if you are doing serious building work.
3. Get your finances in place. Ask your agent for recommendations of financial advisors. A mortgage broker can be particularly helpful if you would like advice and to scan the full range of mortgages, or if you have special circumstances such as being self-employed. Work out how much of a deposit you would have. While you can’t get a mortgage before you buy, you can get a mortgage in principle, which will put you in a stronger position.
4. Choose a specific property. Research the area, and make yourselves familiar to ourselves and other estate agents. Visit as many properties as possible, ask questions, and make sure you understand whether the property is freehold or leasehold.
5. Make an offer – and get it accepted. Make sure you’re in the strongest possible position as previously mentioned. Decide how much you want to pay, make your offer, and it will be referred to the vendor straightaway.
6. Arrange a mortgage. Ideally you have your finances in place – see step 3. If so, you now need to go back to your mortgage company with the agreed offer and complete the process. You will need the lender to make you a formal mortgage offer before you can exchange contracts.
7. Hire a solicitor or conveyancer. They need to handle the legal work to transfer ownership of the property to you. Ask your estate agent for recommendations of reputable local firms, however your lender may require you to go with one that is on their panel. The solicitor or conveyancer will do the searches, such as with the local authority and Environment Agency, to ensure there are no major problems with the property. Please note that local searches are taking some time at present, and does not happen overnight.
8. Decide if you want a survey. Your mortgage lender will require a valuation by a surveyor. This is a simple survey. You can get the valuation upgraded to a full survey, or commission your own. Unless you are very experienced with property, it is worth getting a survey done.
9. Exchange contracts. When you exchange, you become legally committed to buying the property – and the sellers are legally committed to selling it to you. You can only exchange contracts after the solicitor/conveyancer is satisfied with the searches, a formal mortgage offer has been received (unless it is a cash purchase), and arrangements made for the deposit. You need to ensure you take out buildings insurance from the date of exchange, as you are responsible for it from then on.
10. Complete the sale. This is when you pay for the property and take ownership of it. It normally happens between 12pm – 2pm. The money is transferred and the deeds of the property are transferred, between each side’s conveyancer.
11. Pay stamp duty and solicitor/conveyancer. After completion, your solicitor will send you an account, covering all their costs, as well as the purchase price of the house and stamp duty. They will normally pay the stamp duty for you, and ensure that the change of ownership is registered with the land registry.
2. Decide on your budget. This might be dependent on how much of a deposit you can get together. Don’t forget the variety of one-off and ongoing hidden costs, these can put an extra 15% on the cost of your home; more if you are doing serious building work.
3. Get your finances in place. Ask your agent for recommendations of financial advisors. A mortgage broker can be particularly helpful if you would like advice and to scan the full range of mortgages, or if you have special circumstances such as being self-employed. Work out how much of a deposit you would have. While you can’t get a mortgage before you buy, you can get a mortgage in principle, which will put you in a stronger position.
4. Choose a specific property. Research the area, and make yourselves familiar to ourselves and other estate agents. Visit as many properties as possible, ask questions, and make sure you understand whether the property is freehold or leasehold.
5. Make an offer – and get it accepted. Make sure you’re in the strongest possible position as previously mentioned. Decide how much you want to pay, make your offer, and it will be referred to the vendor straightaway.
6. Arrange a mortgage. Ideally you have your finances in place – see step 3. If so, you now need to go back to your mortgage company with the agreed offer and complete the process. You will need the lender to make you a formal mortgage offer before you can exchange contracts.
7. Hire a solicitor or conveyancer. They need to handle the legal work to transfer ownership of the property to you. Ask your estate agent for recommendations of reputable local firms, however your lender may require you to go with one that is on their panel. The solicitor or conveyancer will do the searches, such as with the local authority and Environment Agency, to ensure there are no major problems with the property. Please note that local searches are taking some time at present, and does not happen overnight.
8. Decide if you want a survey. Your mortgage lender will require a valuation by a surveyor. This is a simple survey. You can get the valuation upgraded to a full survey, or commission your own. Unless you are very experienced with property, it is worth getting a survey done.
9. Exchange contracts. When you exchange, you become legally committed to buying the property – and the sellers are legally committed to selling it to you. You can only exchange contracts after the solicitor/conveyancer is satisfied with the searches, a formal mortgage offer has been received (unless it is a cash purchase), and arrangements made for the deposit. You need to ensure you take out buildings insurance from the date of exchange, as you are responsible for it from then on.
10. Complete the sale. This is when you pay for the property and take ownership of it. It normally happens between 12pm – 2pm. The money is transferred and the deeds of the property are transferred, between each side’s conveyancer.
11. Pay stamp duty and solicitor/conveyancer. After completion, your solicitor will send you an account, covering all their costs, as well as the purchase price of the house and stamp duty. They will normally pay the stamp duty for you, and ensure that the change of ownership is registered with the land registry.
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