Helpful Tips for
Buyers
On the 4th December 2014, the government introduced changes to how stamp duty is charged on residential property.
Instead of a set percentage dependent upon the total price paid for a property, it will be charged at different rates depending on the portion of the purchase price that falls within each rate band.
Use this online stamp duty calculator to work out exactly how much you will have to pay:
A survey is like an MOT test for homes. It will tell you the condition of the home and point out weak areas. They are not always required, but they can give you the peace of mind of knowing just what you are buying.
Surveys are not to be confused with valuation reports which are commissioned by mortgage lenders to confirm that the property is adequate collateral for the mortgage loan.
There are three types of surveys that you might want done on your new home.
Full Building Survey
This is the most comprehensive of the three types of survey, also called a structural survey. It takes several hours to prepare, with each element of the property inspected to determine its condition. Any necessary repairs will be identified. You will know, at the end of the survey, if the house needs a new roof or a new electrical system. It is recommended for those who need a building to be thoroughly inspected.
RICS Homebuyers Report
While each element of the property is inspected, it is not done to the same degree as a Full Building Survey. The survey is based on a pre-printed form prepared by the Royal Institution of Chartered Surveyors. This type of survey reports on those areas which affect the value of the property.
Defect Report
This survey concentrates on a particular defect specified by the client. For example, if you noticed that the walls had several cracks in them, you may want a surveyor to come in and figure out the cause and risk associated with the problem.
You should commission your survey only by Chartered Building Surveyors. Look for the initials FRICS or MRICS next to their name.
The cost and time to complete your survey will depend upon which type of survey you have commissioned, and the size, condition and location of your home. It is best to get two or three quotes from different surveyors in the area to assess market rate. You may also wish to speak to your us about typical costs in the area.
Conveyancing is the transfer of ownership of property or land from one person to another. It is necessary to ensure that the new owner has proper legal title to the property.
Legally, conveyancing can be undertaken by anyone. However, the process can be time consuming and complicated and most people prefer to employ a professional. In addition, most lenders will insist on a solicitor or licensed conveyancer acting for them if the transaction involves a mortgage.
Whilst “family solicitors” can do the work involved, many people opt to use specialised conveyancers, who are qualified in property matters. In England and Wales, both solicitors and licensed conveyancers can deal with property conveyancing. Licensed conveyancers do not operate in Scotland. The important thing to remember when choosing a conveyancer is to check that the person that you choose to deal with your conveyancing matters is regulated by a governing body.
Your conveyancer should undertake the following…
Receipt of draft contracts
This contract is a legal document that sets out the terms of the sale. It is initially drafted by the seller’s conveyancer. It will contain details about the property, items that are to be included in the sale, the buyer’s and seller’s particulars, how much the property will be sold for, and the transaction date. It has two parts – The Particulars of Sale and The Condition of Sale. The Particulars describe the property and details of the lease or freehold. The Conditions have information about the proposed completion date and any deposit required when contracts are exchanged.
Preliminary work
Before the commencement of work on the contract, your conveyancer will send a list of questions to the seller’s conveyancer, such as:
Property Information form
Your conveyancer will send you a summary of the items that will go into the draft contract, such as fixtures, fittings, boundaries, etc. You should check that it meets your expectations.
Registry search and Land charge
Your conveyancer will check that the seller actually owns the property and is permitted to sell it. They should include any covenants associated with the property. They should obtain the Title Deed and the Land Registry certificate for the property.
Local searches
The local authority will check if new developments are planned (such as new roads or other construction) next to the property. The authority should also check water drainage and planning restrictions on and next to the property. These searches can take anywhere from two to ten weeks to complete, dependent upon your local authority’s backlog of requests.
You can speed up the process by employing a surveyor to do a Personal Search. This means that you pay an additional fee to a local expert who will usually do the same work as the council in a week or less. This surveyor can also expand the search to look at developments happening in the area, not just next to your property.
Draft contract approved
Once the buyer and seller are satisfied with the terms, draft contracts are sent out to both parties for signature.
Formal mortgage offer
The buyer needs to assure the seller that he can pay for the property – through a mortgage in this case – before he will hand over the keys.
Arrange for completion
In an ideal world, you would simultaneously exchange and complete contracts on the same day and pick up the keys, but that doesn’t always work. You may exchange contracts several days or weeks before formally completing the sale and taking possession of the keys.
Seller’s conveyancer
Buyer’s conveyancer
Seller’s conveyancer
Buyer’s conveyancer
Seller’s conveyancer
Buyer’s conveyancer
There are so many things to think about, that it is helpful to have a quick checklist handy to know you’ve done it all.
For any help or advice please contact us.