You've probably been looking forward to buying your own home for a while, yet you find the prospect nevertheless daunting. It may be the first time you have dealt with solicitors and will almost certainly be the first time you have dealt with mortgage companies. There are a number of elements to keep track of and several ‘parties' to manage in the process. However, plenty of people have done it before you, so there's no reason why you shouldn't be able to do it too.
We think it's best to be armed with some information about the process and of who is expected to do what. Here is our guide:
The main participants in the process are you (the purchaser), the property seller (the vendor), the estate agent, the solicitor, the mortgage broker and lender and finally the surveyor.
Conveyancing Solicitor : You may have friends or family who can recommend a solicitor to carry out your conveyancing for you. Telephone a few in your area and ask them how they structure their charges, whether it's a fixed fee or a percentage, and what the likely costs might be. If communicating via email is most convenient for you, then you might want to make sure they use email. Ask what the searches cover, using this information with the home information pack (if there is one) to see if there is any other information you think you need about the area around your new home.
Estate Agent : All the estate agents you contact will be helpful and keen to sell you a property. If there aren't many typical first time buyer properties on the market, you will need to maintain a good relationship with them so they call you first when one comes on the market. However, don't waste time visiting properties you know you would never buy or simply can't afford. They can be a good link to the property seller so stay in contact with them. Estate Agent's costs are paid by the vendor when the property is sold.
Mortgage Broker, Advisor and Lender : It is possible to liaise directly with a mortgage lender and choose one of their first time buyer mortgages. However, the beauty of consulting with a mortgage broker or advisor is that you will have access to a much greater range of mortgages with the added benefit of their expertise of the different charges, offers, rates and mortgages.
Surveyor: T here are different levels of detail available in the surveys and you need to decide which is appropriate to your needs. A full structural survey will tell you if the building is falling down whereas a home condition report will be a lot more superficial. You can find a building surveyor in the phonebook or on-line.
The solicitor you appoint to carry out the legal aspects of the purchase, the ‘conveyancing' will lead the contractual aspects of the process and will be a great help to you, but you might need to ‘hassle' them from time to time.
This is what happens when and who does what.
- When you think the time is right to purchase a home, you, or you and your friend/partner will need to decide where you want to buy, what sort of amenities you need nearby and what your property requirements are
- Get together any money you have at your disposal for use as a deposit and to pay house-purchasing and setting up home costs
- Contact a good mortgage broker or advisor, they will help you choose the right mortgage for you. They will help you with your application and in time you will receive a ‘decision in principle' on the amount you can borrow
- Register with estate agents in the area you want to live, also search on - line on the property websites
- Find a solicitor to carry out the conveyancing and to draw up a co-buying agreement if you are buying with a friend
- Start looking at properties that fit the bill and that you can afford
- Make an offer to buy the property based on what you have seen and information in the home information pack
- If the vendor accepts your offer and conditions, ask the estate agent to stop marketing the property
- Instruct the solicitor you have chosen to act on your behalf and give him the details of the property address, and the vendor's estate agent
- Your solicitor will contact the vendor's solicitor requesting title deeds to the property. He will initiate contractual proceedings
- Appoint a surveyor and ask for a home-buyers report or a survey to be carried out. We think it's best to have a full structural survey
- The mortgage lender will carry out its own valuation of the property
- The mortgage lender, on sight of the property valuation and data backing up your application agrees to lend you the money for the property
- Send a copy of your survey report to your conveyancing solicitor. He will send you his view on it and you may want to discuss any remedial work you want to request as a result
- The solicitor will check the property, carry out local authority searches – which you may want to supplement to find out more – and find out if any alterations have been made. This would be the time to negotiate fixtures and fittings which can save you some money in the long run
- The solicitor will finalise the details in the contract with the seller's solicitor and confirms mortgage details with your mortgage lender
- You pay a deposit into your solicitor's account. He holds it there until exchange of contracts
- On the day of exchange of contracts, your solicitor exchanges contracts with the seller's solicitor and sends/wires the deposit money over. A completion date (when you can accept the key s and move in), which will have been proposed before-hand is agreed upon
- Your solicitor will liaise with your lender to ensure the mortgage is available on the completion date
- Your solicitor will prepare the property transfer deed, which is signed by you and the seller and it is then filed with the seller's solicitor until completion
- The mortgage lender transfers the money into your solicitor's account ready for completion
- On completion day, your solicitor transfers the money to the sellers' solicitor in return for the transfer deed, Land Registry certificate and the keys. The sale is completed
- Your solicitor arranges for the transfer deed to be stamped, pays the stamp duty and sends the transfer deed to the Land Registry to record you as the new owner
- Your solicitor passes the deed to your mortgage lender as security for the loan and then he will send you the bill for his services and costs including stamp duty
Useful Websites: