A Guide to Buying a Residential Property

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    CHOOSING A MORTGAGE

    When it comes to selecting a mortgage, you have a few options. Seek assistance from an Independent Financial Adviser, a broker, or directly approach a lender. To begin, you can obtain an ‘agreement in principle’, which outlines the potential loan amount and the interest rate. This preliminary agreement can be finalised after finding a property and completing a valuation by the lender.

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    MAKING AN OFFER

    Once you’ve found a property you’re interested in, it’s time to make an offer. If the seller is working with an estate agent, you will need to submit your offer through them. It’s advisable to conduct some research before making an offer. Explore similar properties’ sale prices on popular property websites and examine local house price trends to gain insights into value fluctuations.

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    FINDING A RELIABLE PROPERTY SOLICITOR

    Early on in the buying process, it’s crucial to find a competent Property Solicitor who will act on your behalf throughout the transaction. Opt for a Property Solicitor you trust rather than solely considering the cheapest option. Working with a reliable professional will help minimise stress and avoid unnecessary delays.

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    SURVEYS AND SEARCHES

    Arrange for a surveyor to inspect the property for any potential issues. Keep in mind that the valuation report conducted by the lender’s surveyor is basic and not necessarily comprehensive. Consider either a Home Buyers Report or a full structural survey for a more detailed assessment. Your Property Solicitor will also submit searches to identify any planning or local issues that might impact the property’s value.

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    LENDER’S VALUATION

    The lender will arrange for a valuation to ensure the property’s value aligns with the requested mortgage amount. It’s important to note that this valuation primarily serves the lender’s interests, not necessarily yours as the buyer.

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    ENERGY PERFORMANCE CERTIFICATE (EPC)

    Review the property’s Energy Performance Certificate (EPC), which should be available through the estate agent. A low rating indicates potentially high heating costs. Improving the property’s energy efficiency might require substantial investments, such as a new boiler, loft insulation, or wall insulation.

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    FINALISING THE OFFER AND MORTGAGE

    Once you have received the lender’s valuation, EPC information, and survey findings, it’s time to finalise the offer and mortgage terms. The results from these reports may influence your decision to renegotiate the price. If a lower price is agreed upon, inform the lender so that a new offer can be provided.

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    MENTION SPECIFIC REQUIREMENTS

    Communicate any specific property requirements to your Property Solicitor. This could include intended use, planned extensions, or any other unique considerations. Your Property Solicitor will verify whether there are any restrictions or issues that might hinder your plans.

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    REVIEW CONTRACTS AND TITLE ISSUES

    Your Property Solicitor will raise enquiries based on the searches, contract, and title documentation provided by the seller’s Property Solicitor. They will report their findings to you, addressing any concerns and ensuring you have a clear understanding of the contractual obligations. Review the contract thoroughly and verify that all details are accurate. Pay attention to the fixtures and fittings that the sellers have agreed to leave in the property.

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    EXCHANGE OF CONTRACTS

    Once you and the seller have exchanged contracts, both parties are legally obligated to proceed with the transaction. At this point, you will typically pay a deposit (usually 10% of the purchase price). Withdrawal from the purchase without valid reasons can result in the loss of your deposit and potential legal consequences. If the seller backs out, your deposit will be returned, and you may have.

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    OBTAINING BUILDING INSURANCE

    Obtain buildings insurance that complies with the lender’s requirements and consider additional insurance to protect your new home.

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    COMPLETION AND FINAL STEPS

    Your Property Solicitor receives the mortgage funds, transfers purchase funds to the seller’s conveyancer, and facilitates the transfer of property ownership. Keys are usually handed over via the estate agent. Your conveyancer will handle the Stamp Duty Land Tax (SDLT) return and registration with the Land Registry. Ensure these final steps are completed, and enjoy your new home!

    Congratulations on your new home!

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