Buyers Guide – FAQ

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.

Think about costs. Consider how you’ll cope if your financial situation changes, or interest rates rise, and be careful not to overstretch yourself.

Remember, your savings will have to cover not just the deposit, but expenses such as mortgage fees, Stamp Duty Land Tax (SDLT) and solicitors.

It’s never too early for you to start thinking about arranging a mortgage as this can be time-consuming & you can get a mortgage from an Independent Financial Adviser (IFA), mortgage broker or other lender, such as a bank or building society. (We can recommend carefully chosen Mortgage Advisors to help you).

Once you’ve found a mortgage product you like, agree it as a mortgage ‘in principle’, (AIP).

This tells you how much money the lender is likely to offer and the interest rate you’ll pay.

02

Make a list of your preferences and bear in mind that it is unlikely that most homes will meet every one of your requirements. Be flexible and open minded and see beyond furniture and decoration as these can be changed to your liking. Take advice from the agent re COVID restrictions and allow enough time to travel, view the property and ask questions of the agent. Our experience is that accompanied viewings work best as they take away the pressures of dealing directly with the seller and let you really see the property.

03

Once you’ve found a home you want to buy, the next step is to make an offer, usually through an estate agent. Be confident – all offers will be communicated both verbally & in writing/email to the seller.

04

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 + 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. The typical cost of these is £250 – £300 & this payment needs to be made as early as possible as searches can take a few weeks to come through and are often the most common reason for delays.

05

This survey is done by the mortgage lender to make sure the property is worth the price you’re paying and gives financial security to the lender before they can approve the mortgage. It is not an extensive survey and will not identify all the repairs or maintenance that might be needed.

The typical cost of this is £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.

If you are buying an older property, it may well be worth having a more in-depth survey to help you avoid hidden costly problems in the long run. If there are issues, then these can be dealt as part of the purchase negotiations and perhaps result in a reduced purchase price.

There are several types of survey available:

1 – RICS condition report – This is a basic 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. Typical cost is circa £250.

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

3 – 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 is circa £600+.

06

Once the survey is complete you might want to talk to your estate agent about any findings following the survey – It is at this stage in the process that is often most stressful. Delays and problems can arise from either a down-valuation or potential unseen issues with the property. Thankfully, this is a reasonably rare occurrence, but we will advise you on the best action to take.

07

Once all of the above have taken place, then you should receive the contract to sign from your solicitor who will then exchange the contract for purchase. A typical, straightforward transaction normally takes 10-12 weeks to the exchange of contracts and a further 2-4 weeks for completion.

Before signing the contract, go through it with your solicitor to check that all the details are correct and make sure you’re happy with what the sellers have agreed to leave in the property & that all your queries have been answered.

Once exchanged, you and the seller are committed to the sale and you will be required to pay 10% of the purchase price, (or less by negotiation).

08

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 may 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 VAT.

Your solicitor will register the sale with the Land Registry for properties in England and Wales.

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 between 1% to 3% of the sale price plus 20% VAT. (First time buyers do not have Estate agent’s fees to pay)

Buyers of residential/New homes may be liable to pay Stamp Duty. Your solicitor will usually arrange this for you but note that if you are purchasing an additional home or a buy-to-let property, you’ll have to pay extra on top of each Stamp Duty or Land Transaction Tax band.

Once the completion has occurred and all of the monies transferred, the keys can be released to you to move into your new home.

Removals – don’t forget to book your removal company/ van in plenty of time

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