Buying a property is a huge financial commitment and can therefore seem like a daunting prospect. The key steps involved are summarised in the timeline below, however please don’t hesitate to contact us should you require any further information or advice.
- Sell your existing property (if required)
- Calculate your finances
- Obtain a mortgage in principal
- View properties
- Make an offer
- Exchange and complete
Sell your existing property (if required)
If you are unable to purchase another property without selling your existing one then the first step is to put it on the market for sale.
Once you have agreed a sale on your existing property, you will then be in a proceedable position to make an offer on an ongoing purchase.
Calculate your finances
There are numerous other one-off and regular expenses to consider when buying a property and moving, in addition to the cost of the property itself.
Therefore it is key to take into account how you’ll cope should your financial situation changes, or interest rates rise.
Typical moving costs include:
- Mortgage arrangement fees
- Lenders valuation / HomeBuyer Report / Condition Survey
- Conveyancing Fees including searches, Land Registry fees
- Stamp duty – none to be paid on the first £125,000. £125,000 – £250,000 = 2%, £250,000 – £925,000 = 5%, £925,000 – £1.5 million = 10% and 12% above that. A 3% surcharge is applied to all bands for additional properties.
- Removal Fees
- Possible reconnection costs for phone and TV services
- Re-direction of post
Typical monthly costs include:
- Mortgage Payments
- Buildings and contents insurance
- Council tax
- Water, electricity and gas charges
- Ongoing repairs and decoration
Obtain a mortgage in principal
Unless you are a cash buyer, you will need to arrange a mortgage to buy a property.
Based on your income, your mortgage lender can help you work out how much you can afford to spend on a property and the minimum deposit you will need.
A ‘Mortgage In Principle’ is a conditional offer made by a mortgage lender which tells you how much money they are likely to offer and the interest rate you’ll pay.
It’s in your best interest to acquire a mortgage in principal at the earliest opportunity as it’s usually required by the selling agent before being able to put forward an offer on a property.
Once you have worked out how much you can afford the next stage is to start searching for a property.
In order to assist you in finding your ideal property, we find out as much as possible about your requirements so we have a clear understanding of what is important to you.
You can register with us either online, by phone or by visiting our office, details of suitable properties that match your criteria can then be emailed to you.
We will then conduct viewings with you at the properties of your choice where we can answer any immediate questions and will generally contact you shortly after for your thoughts and feedback.
Make an offer
Once you’ve found a suitable property, we will promptly forward your offer to the seller. Our sales negotiators will work hard to facilitate a satisfying outcome that provides the best result for both parties.
Your acceptance offer is still ‘subject to contract’ which means until contracts are signed there are no legal obligations to proceed on either side.
Once an offer has been accepted we will require solicitors details from you and the seller in order to issue a Memorandum of Sale to all parties concerned.
Exchange and complete
The seller’s solicitor will prepare a Contract of Sale and once enquiries, local searches and evidence of title have been satisfied by your solicitor and your mortgage offer has been received, Exchange of Contracts can take place.
The Contract will be signed by both parties and a deposit of around 10% of the purchase price is transferred from your solicitor to the seller’s solicitor. At this point the seller is legally bound to sell the property to you and a completion date can be agreed.
Completion can be on the date of exchange or typically within one to two weeks after, depending on your requirements. On Completion your solicitor will transfer the remainder of the purchase money to the seller’s solicitor and you can then move into your new home!