First Time Buyer Guide: Buying Your First Property
Buying a property is a major undertaking for anyone, especially for someone who is new to it. That’s why we’ve put together this first time buyer guide which helps map out the processes so there are no hidden surprises, putting you in the best position to purchase your first home. We’ll outline:
- The importance of a specialist first time buyer property solicitor
- Appointing a surveyor
- Contractual documentation
- The searches needed when you plan to buy a property
- The exchange of contracts and completion process
Reports suggest that whilst people are now buying their first property at an older age, typically in their mid 30’s, the market in London and the South East is showing signs of cooling off. Prices are still high compared to other parts of the country, but there could be some relative bargains appearing on the market.
Many people move into the property market buying with a partner, friend or even a relative. Mortgage companies are used to these arrangements and can provide good advice however, it is worth considering a cohabitation agreement if a couple is not married. In all cases this is likely to be a good time to draft a will.
Whilst there are a range of mortgage options available, typically a significant deposit is required. Having a bigger deposit can open up lower mortgage costs so it is well worth looking at all the options that are available. Deposit levels in the London and the South East are relatively high compared to the rest of the country, with ‘the bank of mum and dad’ sometimes helping with this.
Having looked at the affordability of a purchase, what happens next?
Appoint a Specialist First Time Buyer Property Solicitor
Talking to a specialist property solicitor at an early stage is advisable. The legal process when buying your first home can be very confusing for first time buyers and specialist solicitors can provide a wealth of experience and knowledge about the process.
There is some information gathering to be done and some compulsory ID checks, that can take a little while to pull together, so it is best to start this at the early stages of any purchase.
It is important to look at all the costs associated with a move. Stamp duty is a major consideration.
Appointing a surveyor
Given the size of most property acquisitions, we recommend that a survey is performed by a suitably qualified individual.
The survey results will give you an idea of the state of repair of the property and any remedial work that will be required, possibly as a condition of the mortgage.
There are various types of survey ranging from basic valuations through to a full structural survey and the mortgage company might require a specific survey to be completed. This will be another costs you should be aware of.
Purchase Contractual Documentation
The solicitors acting for the seller of the property you are buying will draft a contract and will compile a range of supporting documentation such as title deeds, plans, protocol forms, and leasehold information if applicable.
Your solicitor will review this and guide you through the details and raise any concerns with you.
Your mortgage provider will then send on your mortgage offer to your solicitor for you to sign. This will need to be signed before you can ‘exchange contracts.’
Searches When Buying a Property
A range of searches are needed in relation to the property you plan to buy.
These searches typically include the following:
Local Authority Searches
This will identify any planning permissions granted, whether the property is in a conservation area, any tree preservation orders on the land etc.
Environmental
This will help identify any flood risk, any issues with the local ground stability, infrastructure, and any possible contamination.
Water & drainage
This check helps ensure that the property is properly connected to water and sewerage and if not, what arrangements are in place.
Land registry
This search will confirm that the seller is the legal owner of the property.
Once the solicitor has the results of these searches, they will prepare a report for you and if you are happy with the findings, you can commence the process of moving towards a date for exchange of contracts and the potential date for the completion of the sale.
Sometimes it can feel like the process is running slowly. This can be down to a variety of issues ranging from other bodies being slow to respond, or perhaps the sellers’ solicitors are looking at something from their side. Also be aware that your sellers may well have a ‘chain’ above them.
Property App.
The buying process can feel a little confusing and communication can be key to a clients’ understanding.
Bird & Lovibond have therefore created an app to ease the flow of documentation and aid communication through the purchase process.
There is no obligation to use the app but clients do find it beneficial to use when tracking where they are in the purchase process.
Exchange of Contracts and Completion
Once everyone in a property chain is ready to proceed you will be required to exchange contracts and provide a deposit, typically 10% of the purchase price of the property you are buying.
This deposit is not refundable and at this stage you will not be able to cancel the purchase without incurring the loss of the deposit.
After contracts have been exchanged a completion date will be agreed. This is often a week or two after the exchange of contracts to give all concerned time to plan funds transfer and the final stages of the sale and purchase process.
On the day of completion, all the funds will be moved across from buyer to seller through the chain and the solicitor will register the property in your name.
Can Conveyancing be done Quickly?
As you can see from the above the purchase of property is a relatively complex and a financially and legally significant process. Not all aspects of the process are under the control of your solicitor.
Property transactions can proceed at a good pace but there are many component parts that would have to come together to make this happen.
Contact Our Team of Specialist Property Solicitors
If you would like support with a property purchase, please contact our team of property specialists and we will be delighted to advise you and act on your behalf.