Croftons Conveyancing

To discover just how friendly and supportive our team can be in your home buying requirements, call 0845 838 7013, use the online form or request a free callback

Download your free Croftons Buying a Home.

1. Deciding on your Budget

Firstly decide how much you can afford. Consider your savings and how much you can borrow.

Various financial institutions, including banks and building societies offer loans to people buying a property.

Buying a house has a lot of costs in addition to the mortgage. These include:-

• Survey fees
• Valuation fees
• Stamp Duty Land Tax
• Land Registry fee
• Searches
• Fees charged by the mortgage lender or the mortgage broker
• Solicitors’ costs
• VAT
• Removal expenses
• Any final bills, for example, gas and electricity, from your present home which will have to be paid when you move.

2. Finding your Ideal Home

There are a number of ways which are helpful to finding a property:-

• Estate Agents
• Property pages in local newspapers
• Contacting house building companies for details of new properties
• The internet

3. The Energy Performance Certificate

The seller has to provide an Energy Performance Certificate (EPC) which highlights the energy efficiency of the property (how ‘green’ it is) and the potential of what it could be.

4. Making an Offer

When you find the property you want to buy you do not necessarily have to pay the seller’s asking price. For example you can offer less if you think there are repairs to be done that will cost you money, or simply if you think the property price is too high. Websites such as houseprices.co.uk or zoopla can help with deciding an appropriate offer.

If the property is being sold through an estate agent, tell the agent what you are prepared to pay and this offer will be put to the seller.

If you make a written offer, this should be made subject to contract; therefore you will not be committed to buying the property yet.

Remember that an oral offer is not legally binding..

5. Having Your Offer Accepted

Congratulations, your offer has been accepted. There are now various steps you must take:-

Arranging a mortgage

Deciding if a Survey is necessary

Instructing a solicitor

6. Arranging a mortgage

If you have not already begun to arrange a mortgage, you should do this now. It should take approximately 3 weeks from the application for the mortgage to the formal offer being made by the lender. This time scale may vary.

The mortgage lender will want to have the property valued. The valuation will be carried out by a surveyor on behalf of the lender but you will have to pay for this valuation, usually in advance.

7. Deciding if a Survey is necessary

The valuation which is carried out for the mortgage lender is not a survey. Therefore, we recommend that you have an independent survey carried out. Always remember the golden rule is “buyer beware” so you will be liable for any problems that you discover after exchange of contracts.

8. Instructing a solicitor

There are a number of legal steps to buying property and this is often called ‘conveyancing’ and is usually handled by a solicitor. Choosing a solicitor can seem like a minefield, but it is a very important part of the property buying process.

The solicitor will look into all the legal aspects and carry out enquiries called ‘searches’ about the surrounding area e.g. are there any old landfills nearby, that may affect the value or stability of the property.

When choosing a solicitor, look carefully at the list of services, the qualifications, the experience and recommendations of the lawyer who will be looking after your interests. Mistakes in the legal process of property purchasing are easy to make and hard to rectify!

It is important that you understand the costs involved and check whether the figure quoted is a fixed fee or if it depends on how much work is involved.

The process can be made easier on you if you have a solicitor with whom you have a good rapport, one who you can contact whenever you need and one who you can rely on to keep you updated and in the picture.

Croftons offer full conveyancing services. You can telephone us on 0845 838 7013 and speak to one of our property lawyers who will take you through the conveyancing procedure and you will have the opportunity to give any specific instructions , for example preferred completion dates. Alternatively, you could email us at homelegal@croftons.co.uk

9. How long will it take?

This varies from case to case and depends on a number of factors. A standard transaction, without complications, usually takes six to ten weeks. You can expect six to eight weeks to get to exchange of contracts and then another two to four weeks to completion.

At Croftons we will try and move your sale or purchase along as quickly as we can, but there are some factors which are outside our control, such as your mortgage offer, delays on the part of the person you are buying from or selling to or delays up or down the chain. Be reassured though we will do all we can to keep the process as smooth and hassle free as possible.

10. Stamp Duty Land Tax

SDLT is the tax you pay when you buy property, the rate of SDLT you pay depends on the purchase price, as follows:-

Purchase price/lease premium or transfer value	SDLT rate	SDLT rate for first-time buyers
£0 to £125,000.00	0%	0%
£250,001.00 – £500,000.00	1%	0%
£0 to £125,000.00	3%	3%
£500,000 to £1 million	4%	4%
Over £1 million	5%	5%

Once you are in a particular price band, you unfortunately have to pay the percentage shown on the whole of the purchase price.

Stamp Duty Land Tax for First Time Buyers

A two year holiday period from Stamp Duty Tax Land (SDLT) has been introduced until 25 March 2012 on house purchases under £250,000.00.
SDLT relief will apply where:-

• An individual or individuals jointly purchase a major interest in land which is wholly residential.
• The consideration is more than £125,000.00 but not more than £250,000.00.
• That individual (or all of them) intends to occupy the property as his/her or their only or main residence.
• The individual or individuals has or have not previously purchased an interest in a property in the UK or elsewhere in the World.
• The date of the transaction is on or after 25 March 2010 and before 25 March 2012.

11. Arranging to Pay the Deposit

Whilst your solicitor is making enquires of the seller’s solicitors and ordering the searches, you should take this opportunity to arrange how you will pay the deposit that has to be made when contracts are exchanged.

This deposit is usually 10% of the purchase price but it can vary.

If you are also selling a property, it is usually possible to put the deposit on your property being sold toward the deposit on the property you are buying.

If raising the deposit is a problem, then you could consider borrowing the money for the deposit from relatives or you could try to get a bridging loan from a bank. Discuss your options with your solicitor.

12. Insuring the Property

You should make sure that buildings insurance is arranged from the date of exchange, because once contracts have been exchanged you are responsible for the property. Discuss the buildings insurance requirements with your solicitor.

13. Exchange of Contracts

You and the seller each have a copy of the final contract which you must sign.

These contracts will be exchanged on a date agreed by you and the seller when:-

• Your solicitor is satisfied with the final outcome of the enquiries and search results.
• Any surveyor’s report has been received and any necessary action taken.
• The formal mortgage offer has been received.
• Arrangements about the payment of the  deposit have been made.
• The date of completion has been agreed.

Once contracts have been exchanged, both you and the seller are legally bound and the sale must go ahead. If you drop out, you are likely to lose your deposit.

At this stage you should make arrangements for the supply of gas, electricity and telephone service and make sure that the seller is arranging for a final meter reading to be made.

You can now also finalise your removal arrangements as a moving date has been set.

14. Completion

On the day agreed for completion:-

• The mortgage lender releases the money to your solicitor.
• The deeds to the property are handed over to your solicitor.
• The seller hands over the keys and leaves the property.

15. When and how do I get the keys?

It is usual for the estate agents to have the keys and if you are buying a house you will be able to pick them up from the estate agents on the day of completion (once the money has reached the seller’s solicitors’ account).

To find out more you call 0845 838 7013, use the online form or request a free callback and speak with our friendly professional team.