How To Buy Your First Property

The dreaded mortgage has been taken care off. You have scoured the area far and wide. Finally you have found the perfect place in the perfect area. The formative stages of choosing a house are often the most exciting, but now you will have to brace yourself for a more serious process.

{Making your bid known}

Before putting in an offer and start looking for quotes from removal couriers, try to glean as much information from the estate agent as possible. It is important to find out if the property owners want a quick sale or if the house has been on the market for a considerable amount of time. Initially offer below the asking price and be prepared to have this offer rejected. Your first offer will kickstart the negotiation process. But remember, stick to your budget. For any property that falls into the £120,000 to £250,000 bracket, you will have to pay stamp duty costs totalling 1% of the house value.

{If the owners accept your bid}

Ask the estate agent to take the property off the market and then instruct a solicitor. Always look into recommendations from friends a family and ask for a few quotes. You could be stung with additional fees and charges if you do not set a one-off fee in stone with your solicitor. Your solicitor will take over the legal issues and make sure that all the vital checks, including those listed below, are carried out.

Land Registry search

This confirms whether the seller has the right to sell the property and whether there are any outstanding rights over the property (ie, a loan secured against it). The solicitor will then register the transfer of ownership into your name. The price you will have to pay is dependant on the property’s value but will likely be between £50 and £500.

Local authority search

This checks that there are no local plans that may affect the value of the home. You do not want to learn about plans to build a superstore or highway near your place after you have moved in. The flat fee for this service should come to about £170.

{Survey}

There are three main types. The first is a valuation survey, required by your lender to check that the value of the property covers its loan. This normally costs about £200. It is a good idea, however, to get your own survey done. You can either pay for a home buyer’s report, which will cost you about £400, or a full structural survey, which is more expensive.

{Swapping your contracts}

You can begin the exchange process once you and your solicitor are happy with all checks and queries and have agreed the draft contract. This will usually not happen overnight and will take some time. You will sign the contract and pay the deposit. If you pull out now, you will lose your deposit. Only after both party’s exchanging their contracts can the date for the completion of the purchase be finalised. You should now look into removal companies that will help you move out of your current place.

{Finally completed}

You can pick up the keys and wait for the man and van to take your possessions to the new house.