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Useful information for home buyers and sellers

Here are some of the most frequently asked questions.

 

How long will it take?

If the property is empty and the buyer does not require a mortgage, a sale or purchase can all be completed in a few days but this is very unusual. It is more likely that a mortgage will be required and there will be a chain of transactions. If that is the case it will usually take 4-6 weeks to exchange contracts and then another 2-4 weeks between exchange of contracts and completion making a total of 6-10 weeks from start to finish. We always do all that we can to progress your transaction as quickly as possible but we cannot offer any guarantee about this and you should not believe anyone else that does!

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How soon do I need to pay any money?

Usually your solicitor will ask you for approximately £30 on a freehold sale and £300.00 on a purchase at the beginning to cover the search fees that will be paid out on your behalf. Please note that some searches may be contained within the Sellers Home Information Pack (if they have one), however, if these searches are "out of date" or not accepted by your Mortgage Lender you may have to carry out new searches or pay for indemnity insurance.

The balance of the price and the solicitors costs etc will be payable shortly before completion unless you are borrowing more than 90% of the purchase price in which case it may be required prior to exchange of contracts (see also "How much deposit will I need"). The costs and agents fees will be paid out from the sale proceeds on completion before any balance is sent to you.

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Do I need a survey?

Please be aware that any Mortgage Valuation is not a Full Structural Survey and there may be defects in the property which are not revealed by the inspection carried out by the lender's valuer and there may be omissions or inaccuracies in the report which do not matter to your lender but which would matter to you. You should not rely on the mortgage valuation report in deciding whether to proceed with the purchase. You should consider obtaining your own more detailed report on the condition and value of the property, based on a fuller inspection, to enable you to decide whether the property is suitable for your purposes.

If the property is quite old or you are particularly concerned about its condition you can obtain a full structural survey report which is even more detailed. Under English Law you buy the property in its existing state so that you are not entitled to any refund or discount from the seller if you find any defects after you buy the property.

Always remember the golden rule is "let the buyer beware" so provided the seller has not misled the buyer then the buyer will be liable for any problems that you discover after exchange of contracts. If you wish we can arrange a survey by our associated company Now Survey.

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How much deposit will I need?

It is normal for a deposit to be paid on exchange of contracts. Although many people think 10% is required that is often incorrect. If you are buying and selling we can usually use your buyers deposit in connection with your purchase so you may not have to find anything. If you are just buying the amount of the deposit will usually depend upon the size of your mortgage (if any). If it is less than 90% then you will usually need to find 10% but if you are borrowing more than this we can often persuade the seller to accept whatever amount you are putting in or even just the amount of our costs and disbursements if you are borrowing 100%.

If you are selling and buying, the deposit which is offered on your sale will be used on your purchase, and so usually no further deposit monies will be needed from you before exchange. However if the deposit offered on your sale is a small percentage of the purchase price of the property you are buying, you could be asked to 'top up' the deposit.

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What searches do you carry out and why?

There are five main types of search that can be carried out and the buyers solicitor will decide which of these are necessary in any particular case:-

Local Authority Search
This reveals details of the planning history for the property and whether the Council are aware of any breaches of planning, also any proposals for new roads or traffic schemes, tree preservation orders, conservation areas and any other matters within the Council's control that may affect the property. If there is a Home Information Pack for the property then this search may be included this. If the search is in a Home Information Pack but the search is 'out of date' or not accepted by your mortgage lender you may have to obtain a new search or pay for indemnity insurance.

Water and Drainage Search
This will show whether or not the surface and/or foul water drains run into a public or private sewer and whether mains water is available. If there is a Home Information Pack for the property then this search may be included this. If the search is in a Home Information Pack but the search is 'out of date' or not accepted by your mortgage lender you may have to obtain a new search or pay for indemnity insurance.

Land Registry Search
This is carried out just before completion in order to find out for example if there are new mortgages registered against the property that have not previously been disclosed. If there are then the buyers solicitor will obviously require confirmation that these will be repaid on completion.

Land Charges Search
If you are obtaining a mortgage the lender will ask your solicitor to carry out a search to make sure that are you are not bankrupt! Quite often this search will show an entry against someone else with a similar name. If so you may be asked to sign a copy of the result to confirm that it does not relate to you.

Environmental Search
It has more recently been recommended that the buyers solicitor should also carry out an environmental search to see if there are any landfill or waste disposal sites in the area, if the property has been built on an old industrial site and whether there are any risks from contaminated land, toxic emissions, flooding, subsidence etc.

Other searches may be appropriate in a particular area, such as a coal mining search or commons registry search.

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Can I exchange contracts before I receive my mortgage offer?

Yes - But, If for any reason the mortgage offer is declined or delayed or it contains any conditions that you cannot comply with the money may not be available when required so it would be extremely dangerous to exchange contracts without it and we would strongly advise you not to do so.

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When do I need to arrange buildings insurance?

Unless the building insurance is being arranged by your lender or it is a leasehold property and the insurance is dealt with by the freeholder you must arrange buildings insurance from exchange of contracts as the property will be at your risk from that time.

The amount of cover should be the estimated cost of re-building the property if it is totally destroyed which is not necessarily the same as the current market value. If you had a survey or you are obtaining a mortgage your surveyor or the lenders valuer will usually have suggested a minimum amount of cover in their report.

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What do we need to know if we are buying in joint names?

Most couples who are married or in a stable relationship purchase as "joint tenants" which means that upon the death of one or other of them that persons half share will automatically pass to the other.

The alternative is to hold the property as "tenants in common" which means that each persons half share is treated as being separate so that upon the death of one or other of them his or her share will not automatically go to the other but to whoever it has been left to in the deceased persons will or, if there is no will, to his or her next of kin.

If you are putting unequal amounts into the property the person who is paying the larger amount can and often should be protected by a "trust deed" which sets out your respective shares so that in the event of any dispute or upon the death of one or other of you in the future your original intentions will be clearly recorded. Once you have considered the above options and/or if you require further advice you should tell your solicitor so that we can make sure that your wishes are carried out. If a Trust Deed is required there will be an additional charge of £150.00 plus VAT.

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What happens with the keys?

These are usually left with the estate agents (if any) and the buyer collects them once the money has been paid over on the day of completion.

If there are no estate agents (or this is not convenient) then the seller will hand them direct to the buyer once the seller has been authorised to do so by their solicitor. Either way it is important that arrangements are made in advance to prevent the possibility of the buyer having to wait outside with the removal van! Although your solicitor will always try to ensure that everything is finalised as early as possible on the day of completion - and usually this is dealt with by mid-day or early afternoon - there can sometimes be a delay if, for example, your solicitor is still waiting for the mortgage monies to arrive or there is a particularly long chain.

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When will I get my money?

If you are just selling or there is a surplus due back to you after the completion of your sale and purchase your solicitor will always try to send this to you on the day of completion. Payment is usually made by cheque but for larger amounts your solicitor can transfer the money direct to your bank if you request this in advance and provide your account details. There may be an additional bank transfer fee for this.

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