When you buy a home, you are buying so much more than walls, furniture and a roof over your head.
You are buying a future for you and your family.
Given the importance of this decision, it can be an emotionally charged process with hundreds of questions both big and small. For young people, it is often the first large independent decision they have ever make.
Knowing how to research the market and what to look for in a neighbourhood and in a property are key.
Before looking around at properties to buy, establish how much you can afford to spend on a property. Most buyers require a mortgage to help fund their purchase therefore, it is a good idea to speak to a mortgage advisor or broker to find out how much you can afford to borrow and, even better, get a decision in principle from a mortgage lender. This is written confirmation from the mortgage lender advising how much they are prepared to lend to you. If you already have a decision in principle when making an offer on a property, this demonstrates to the property seller, your ability to fund the purchase.
Your mortgage lender will undertake an affordability assessment which will take into account your income and your current outgoings, and will consider any changes that might affect whether you would be able to afford repayments (for example if interest rates change or if you were made redundant).
The Government also offers a number of schemes to help people to buy a home. These include:
It is important to note that buying the property will not be the only expense you will need to consider. Other typical costs of buying a property include:
Our local viewing specialists live and breathe residential property real estate. They can share insights into the local market conditions and current buyer activity and are aware of properties that are on, off and coming onto the market.
Location is a home buyer’s most important consideration. You can always renovate or improve a home, but you cannot change its location. But what actually makes a great location? In essence, a great location is one that allows you to live the lifestyle you want for you and your family.
It is the mix of physical location, the character of the area and its proximity to desirable amenities.
Keeping an open mind as to where you want to live can help you find your property sooner.
Due diligence can help safeguard you from buying a property with issues that may end up costing you at a later date. It is very important that you commission a full survey as this will identify issues not visible to the naked eye. Whilst no property is perfect, knowing if there are any serious issues with the property can help you make smarter buying decisions.
Walking around neighbourhoods and going to open houses gives you good insights that cannot be garnered from a computer. Not only does this help give you clarity about what is available, what you like and dislike, it also helps expand your knowledge of local markets.
Making an offer is a big step and is the start of the negotiation process. You should only make an offer if you are serious about buying the property. Pulling out of a purchase once your offer has been accepted will cause delays and expenses for both yourself and the seller.
If your offer is accepted, you will then need to proceed to instruct your legal advisor to act on your behalf and make a full mortgage application. If you have not already done so, you should also arrange your survey of the property.
Buying a property is a legal process, so ensuring you have experts helping you navigate the transaction is important. They will review the contract, carry out searches, raise any necessary enquiries and negotiate changes to ensure you receive satisfactory legal title to the property upon the legal transfer of ownership to you on completion.
Buying a property is a legal transaction and, therefore, a Contract of Sale is required to protect both the buyer and the seller. This document contains all the relevant information related to the sale of the property, including names and addresses of the buyer and the seller, conditions of the sale, and the completion date.
Exchange is when the buyer and seller exchange their contracts, and is the point at which the transaction becomes legally binding.
Your legal advisor will recommend that you inspect the property immediately prior to exchange to ensure that the property is still in the same condition as when you last inspected it, and to make sure there are no unexpected occupiers.
You will be required to pay the deposit on exchange of contracts. This is usually 10% of the purchase price.
Exchanging contracts is an official legal commitment. If you withdraw from the agreement after exchange you may lose your deposit and have to pay compensation to the seller for other losses.
You will also be responsible for insuring the property from exchange of contracts.
Once contracts have been exchanged you should book a removal company if you intend to use one, contact your utilities providers and make arrangements to pay any balance of completion funds required to your legal advisor.
Your legal advisor will request the drawdown of your mortgage funds from the Lender.
On completion day, your legal advisor will ensure all conditions of the contract have been fulfilled. They will arrange for the purchase price, less any deposit already paid on exchange, to be paid to the Seller’s solicitors.
Once the Seller’s solicitors confirm receipt of the funds, completion will take place and you will be advised to collect the keys to your new property.
Your legal advisor will arrange for the payment of any Stamp Duty Land Tax due on the transaction and deal with an application to HM Land Registry to register your ownership of the property.
Stamp Duty is a compulsory tax and is the biggest additional expense for home buyers. The percentage rate of stamp duty you will have to pay depends on a number of factors, however your legal advisor will be able to advise you fully in this respect prior to exchange and completion.
