BUYING & SELLING

Before you start house-hunting, it’s a good idea to work out what you can afford to spend on buying a house or a flat and your monthly mortgage payment.

Firstly, get out there and view some properties. We might just have the thing you’re looking for in our portfolio of available properties. Once you’ve found a home you want to buy, the next step is to make an offer. 

There should never be any financial commitments when making an offer on a property until its accepted. In some cases, and mainly with new build properties you may be asked to pay a reservation fee. The agent will explain the process with this as every situation is different.  

Once your offer is accepted the agent will issue a letter know as sales memorandums this puts both buyers solicitors and vendors solicitors in touch with one another. The solicitor will handle the legal work around the property.

Your solicitor will tell you how much you can expect to pay and might ask for a deposit upfront – this is typically 10% of their fee. Typical cost: £500-£1,500 + 20% VAT

Your solicitor submits searches to the local council to check whether there are any planning or local issues that might affect the property’s value. Typical cost: £250-£300

Valuation survey

This survey is done by the lender to make sure the property is worth the price you’re paying before they approve the mortgage.

It is not an extensive survey and will not identify all the repairs or maintenance that might be needed.

Typical cost: £150-£1,500 depending on the value of property.

Some lenders might not charge you for this, depending on the type of mortgage product you select.

The Property Surveys

Home buyers who didn’t have the right survey faced a £5,750 bill on average after moving in, according to the Royal Institution of Chartered Surveyors (source: RICS). You should commission a survey on the property to help you avoid hidden costly problems in the long run.

It’s your property, so it’s in your interest to pay for a decent survey at this stage. It can also help you to renegotiate the price.

For example, if the survey reveals a problem with the home that will need £5,000 to pay for repairs, you could ask the seller to lower the price by that much.

There are several types of survey available:

RICS condition report – basic ‘traffic light’ survey and the cheapest. It’s most suitable for new-build and conventional homes in good condition. No advice or valuation is provided in this survey. Cost: £250.

RICS homebuyer report – suitable for conventional properties in reasonable condition. This is a much more detailed survey, looking thoroughly inside and outside a property. It also includes a valuation. Typical cost: £400+.

Building or structural survey – the most comprehensive survey and suitable for all residential properties. It’s particularly good for older homes or homes that might need repairs. Typical cost: £600+.

Once the survey is complete and with your mortgage offer accepted and on its way to your solicitor you are just about ready to complete the transaction. 

If there are no problems or delays, then you should receive the contract to sign and complete the sale.

Before signing the contract, go through it with your solicitor to check that all the details are correct.

Make sure you’re happy with what the sellers have agreed to leave in the property and that all your queries have been answered.

At this stage, you and the seller are committed to the sale.

The seller might also ask you to pay a holding deposit – typically £500-£1000 to show intent. Once you’ve exchanged contracts, you’ll need buildings insurance in place to cover the structure of the property.

The remaining money owed to buy the property is now transferred from your solicitor’s account to the seller’s solicitor’s account. Since some of the money comes from the mortgage provider there will be a telegraphic transfer fee. Typical cost: £25-£50.

You might also have to pay a mortgage account fee. The lender charges this fee for setting up, maintaining and closing down your mortgage account. It’s often added to the mortgage, which means you’ll pay interest on it, so consider paying it up front instead. Cost: £100-£300.

You’ll now need to pay your solicitor’s bill (minus the deposit and local searches if you’ve already paid them). Typical cost: £500-£1,500 plus 20% VAT.

Your solicitor will register the sale with the Land Registry for properties in England and Wales. In Northern Ireland it needs to be registered with Land and Property Services and the cost of this will depend on the price of the property.

Sellers will need to pay their estate agent on completion. The fee is agreed at the outset and is typically a percentage of the purchase price, usually 1% to 3% of the sale price plus 20% VAT. Buyers don’t have any estate agent fees.

Buyers of residential homes costing over £500,000 have 14 days from the completion date to pay Stamp Duty in England and Northern Ireland. Your solicitor will usually arrange this for you. In Wales, you will need to pay Land Transaction Tax on properties over £250,000.

If you’re using a removal company, moving on a weekday is cheaper. Typical cost: £300-£600+.

Congratulations on your new home, go and get your keys.

“Live Happily Ever After”