Buying your first home can feel daunting. However, with the support of expert professionals, it doesn’t have to be. Below is a short guide to buying your first property and the key stages involved in the conveyancing process.
Costs
Buying a property is a significant investment. Typically, a buyer will pay a 10% cash deposit towards a property. Most buyers will then require a mortgage to cover the remainder of the purchase price. It is important to remember that there are other costs involved in purchasing a property in addition to the cost of the property itself, including Stamp Duty Land Tax, Land Registry registration fees, legal fees, survey and search fees, and costs of repair work.
Instructing a solicitor
Once you have made an offer on a property which has been accepted, you will need to instruct a solicitor who will carry out all the legal work involved in buying your property. Your solicitor will review all the documentation provided by the seller in detail and will identify and advise you on any legal issues with the property.
Searches
Your solicitor will instruct the standard searches such as the local authority search, environmental search, water and drainage search, and chancel search. They will also advise on whether any additional searches may be required.
Survey
It is highly advisable that you have a survey of the property carried out. This involves a surveyor carrying out a detailed inspection of the property. They will identify any issues with the property and will highlight any points that your solicitor should raise with the seller. Your surveyor will also advise you on any minor or major maintenance works required to the property. In some cases, your surveyor might advise that you instruct a specialist to visit the property to further assess certain issues identified, for example a damp specialist.
Enquiries
Your solicitor will raise enquires with the seller’s solicitor which includes any queries that your solicitor may have after reviewing all the documentation relating to the property. This is an important part of the transaction as it allows you to ask the seller any relevant questions about the property. You should therefore think about whether there is anything that you would like your solicitor to raise with the seller on your behalf.
Report on title
Once the seller has replied to all the enquires raised by your solicitor, your solicitor will provide you with their report on title. This is a detailed report which outlines your solicitor’s findings in relation to the property. It is important that you review this document carefully and let your solicitor know if you have any further queries following your review of the report.
Exchange
Exchange is when you and the seller exchange contracts and the transaction becomes legally binding. This is when you will pay the deposit (usually 10%) and contractually confirm the completion date. It is important to note that if you withdraw from the transaction after exchange of contracts, you risk losing your deposit and you may have to pay compensation to the seller for any other losses. Similarly, if the seller withdraws after exchange, they may be liable for your costs.
Completion
Completion is when you will be required to transfer the balance of the purchase price to the seller and you take ownership of the property. The estate agent will arrange for collection of the keys, at which point you can move in.
Post-completion
Your solicitor will register the change of ownership at the Land Registry and will pay any Stamp Duty Land Tax that is due.
If you are looking to buy your first home and require assistance, please contact residential property lawyer Mariel Cruz.