INTRODUCTION

When buying a house, it can be a daunting prospect, especially for a first time buyer. The decisions you make along the way could either save or cost you many thousands of pounds.

Our step by step guide property buying guide can be your checklist for all the important and key decisions of buying a house.

DECIDE IF BUYING A HOUSE IS RIGHT FOR YOU

In the UK, 86% of people want to own their own house, but owning your own home isn’t always right for everyone all the time. If you are one of the millions of the UK population curerntly priced out of the market, then the only decision left for you is to rent.

There are a number of things to think about and consider before embarking on your hunt for a new home and top of that list is of course whether you can actually afford it!

What help is available to get you onto the property ladder?

Before you look at what you think you can afford it may be worth exploring the various Government schemes that are available to help you get onto the property ladder. In 2021 there were two new schemes launched; the Mortgage Guarantee Scheme which is designed to help buyers get onto the ladder with just a 5% deposit and also the First Homes Scheme which gives the First Time Buyer between 30 - 50% discount on newly built homes. As well as these new schemes there are also a number of other schemes which have been around for some time, including the Shared Ownership, Help to Buy Equity Loan Scheme and Lifetime ISA.

What are the advantages of buying your own home?

• It will give you freedom and security
• It can save you money
• It can make you money

What are the disadvantages of buying your own home?

• It is a huge financial commitment
• You have to do all your own repairs and pay for them
• You can’t just hand in a notice period and move on elsewhere

DECIDE IF YOU SHOULD SELL FIRST

If you already are a homeowner, you should decide first if you want to sell your property before you buy. In a rising housing market this can be a risky decision, but it comes with advantages. In particular, you will be able to move quickly when you do find your dream property and also be in a better position to negotiate on the price of the property you want to buy as you have no chain and are effectively a cash buyer.

If you do decide to buy and sell at the same time, below, we can give you advice on how to possibly make the process smoother. If you would like some advice from our Russen & Hill team, you can call us on 01603 744359 and we will be happy to assist you.

GET YOUR FINANCES IN PLACE

If you are a First Time Buyer then you should contact our preferred Independant Mortgage Advisors - Broadland Consultants Ltd on 01603 343007 or through their website at www.broadlandconsultants.com who can discuss with you the best options.

Work out how much of a deposit for the mortgage that you need. You may have been saving a ‘deposit’ pot for a number of years or you can tap up the ‘Bank of Mum & Dad’ to see if they can put towards the ‘deposit’ fund. If you have any long term savings going, it is an idea to cash them in to build the pot. You can get a rough idea of how much of a deposit you will need by getting a FREE valuation from Russen & Hill and calculating how much equity you then have in your house to allow you to move.

Decide what sort of mortgage is right for you. Broadland Consultants Ltd can discuss with you the available mortgages deals on the market.

Although Mortgage offers can not be given before you buy a property, you are able to get mortgage in principal, which will allow you a stronger position.

If you are purchasing a new build property, mortgage deals are different and should be discussed with our Independant Mortgage Advisors - Broadland Consultants Ltd.

DECIDE WHERE YOU WANT TO LIVE

Obviously if you love the location you currently live in, there is nothing to think about, just find a property that fits your search in your current location. But a change is as good as anything, branch out, see the world!

If you are looking to move to a different town, county or the other side of the country then choosing an area is a lot more difficult. You may be looking to move closer to family or for a work placement, so ask them for advice, or if you are looking for just a change, then use the internet to scope out an area of interest. Make a list and then book up a hotel or B&B to then spend some time researching and looking at the areas in your shortlist.

Time should be well spent on this area, as this is an important decision and could cost a lot of money if you are unhappy with your chosen area and then need to move again.

CHOOSE A SPECIFIC PROPERTY

Once you have a shortlist of areas you would like to live in, research the properties available in that area thoroughly so you can get to know the market well. For instance if you are looking to move to a town, what is the type of properties like, such as Cambridge have a quaint English feel about them whereas Manchester maybe more of an industrial feel.

Contact the local Estate Agent to the area and get them to forward you any and all properties available within your property criteria so you can get a feel of what is on offer, then broaden your horizons.

If you are looking to buy a new build property, it would be an idea to speak to the developer initially before the property is built to see if you can request certain structural elements to be changed, such as a garage or a utility room.

MAKE AN OFFER AND GET IT ACCEPTED

You’ve found a property and wish to make an offer. Estate Agents by law need to put to their buyer every offer made, regardless whethe it is a low ball cheeky offer or not. Doesn’t hurt to try! But, make sure you give good reasons for your offer such as your position if you are not in a chain, you are a cash buyer or there are obvious problems with the property.

Decide yourself on a maximum that you want to pay should a counter offer comes back or you get in the unfortunate position of a bidding war with another interested party.

You may be asked to pay a small deposit such as £500 or £1k to show the seller that you are serious about the deal and this will be repaid to you if the sale was to fall through and adjusted in the price if the sale completes.

State your case clearly, don’t rush back into making an offer immeditley after you’ve viewed it, make the other end sweat and then go in with the deal, talk it up and hopefully your offer will be accepted.

ARRANGE A MORTGAGE

Ideally you should have your finances in place as much as possible before you make an offer, such as getting a mortgage in principle. If you have, then you just need to get back in touch with your mortgage provider with your agreed offer and complete the process.

If you don’t have your finances in place, then you now need to get a shift on and get the ball moving as quickly as possible before the seller loses patience and in the worst case scenario pulls the deal.

Before exchanging contracts, you will need to get the lender to make you a formal offer. Mortgage offers usually last for 3 months, so bear this in mind if you find yourself in a property chain as the delay may mean you will need to apply again before contracts are exchanged.

HIRE A SOLICITOR OR CONVEYANCING

Once your offer has been accepted on your house, your first port of call is to instruct a solicitor or a conveyancer to handle the leagl work involved to transfer the ownership of the property to you.

If you are needing a mortgage, the mortgage lender may require you to go with one of their preferred companies. If you are a cash buyer, you are in the position where you can pick and choose the best business to suit you, either cost wise or reputation wise.

A solicitor or conveyancer do all the searches for you, such as Environmental Agency or local Authority to ensure that there are no major problems with the property you are purchasing.

DECIDE IF YOU WANT A SURVEY

If you are needing a mortgage, your mortgage lender will require a valuation by a surveyor to ensure that the property is in sound enough condition to lend against. This will not be a full survey and the surveyor will only look at superficial issues at the property.

You will need to commission your own survey to evaluate the condition of the property and inform you of any potential problems you may face if you proceed. It is always worth getting a survey done, unless you are an experienced property person or you are a cash buyer and looking to make structural changes anyway. Be aware though that even a full survey will only give guidance and unless instructed the surveyor won’t do things like check beam loadage or rot of floor boards etc.

ARRANGE A DEPOSIT

Before you are able to exchange contracts, you will need to arrange a deposit of 10% of the sale price of the property and forward this to your solicitor or conveyancer.

You should either have the 10% deposit payment from the deposit you have arranged for the whole property, or you might raise it from the sale of your existing home.

EXCHANGING CONTRACTS

Exchanging contracts with the seller means that you then become legally committed to purchasing the property. The seller is also then legally committed to selling their property to you.

Should you pull out after exchanging contracts without due reason, your 10% deposit payment will be forfeited.

Exchanging contracts should only be processed after you have received the surveyors report and actioned any neccessary points of concern.

Before you exchange contracts, you will need to agree a completion date with the seller. The usual time frame for a completion date after exchange of contracts is four weeks.

You can only exchange contracts after the solicitor or conveyancer are satisfied with the searches, a formal mortgage offer is in place and arrangements have been made for the 10% deposit.

If you are having a mortgage you will need to ensure that you take out a buildings insurance policy for the property to start from the date of exchange and you are responsible for it from then on.

FINAL ARRANGEMENTS & NEGOTIATIONS

Make arrangements for the supply of gas, electricity, water and telephone services and make sure that the seller of the property has got all the readings on completion of the house sale. It is often quicker to simply change the existing account details to you rather than change suppliers which can then be done at a later date.

Anything not previously negotiated such as buying seller’s appliances can be done before completion date.

Ensure you have a removal company booked in plenty of time as many may be booked a long time in advance.

Your solicitor or conveyancer will inform the land registry that they are in the process of transferring ownership of your property.

Your solicitor or conveyancer should liase with your mortgage company to ensure that the monies are in place on completion day.

COMPLETION OF THE SALE

The completion of the sale is when you pay for teh property and take ownership. This usually takes place at a certain time of the day, often midday.

On completion day, the monies are transferred and the deeds of the property transferred between each parties conveyancers. This is usually the most stressful part of the process!

TAKE POSESSION OF YOUR NEW HOME

The seller of the property has to vacate the property prior to completion, where you should then be able to collect the keys which are normally held at the Estate Agents.

Congratulations, you are now free to move in.

PAY STAMP DUTY & SETTLE UP SOLICITOR OR CONVEYANCING INVOICES

After the property completion, your solicitor or conveyancer will send you an account, detailing their costs and disbursements, as well as the property purchase price and the stamp duty owed.

Your solicitor or conveyancer usually pays the stamp duty for you during the money transfer, and ensure that the change of ownership is registered with the land registry.

There may be a small refund due to you if your solicitor or conveyancer has overestimated their costs, I wouldn’t hold your breath on this one happening though!!!