Buying a property can be the single most exciting yet daunting thing. 

Here I will outline some tips and tricks provided from the government website regarding how to buy a home. Please note for information purposes it can all be found on the following link. https://www.gov.uk/government/publications/how-to-buy-a-home/how-to-buy#your-mortgage

An important starting point is to work out what exactly you can afford. You can typically borrow a multiple of your household income and this amount will be influenced by your credit score. Adding this sum to your deposit will give you an indication of your budget. The larger your deposit, the more favourable the mortgage deals you are likely to be able to access. There are various government schemes available. 

• Help to buy: equity loan 
• Lifetime ISA 
• Help to buy Wales
• Homebuy Wales

When buying a home you must ensure you have accounted for all additional costs, these may include but are not limited to the following:

• Stamp duty in England and land transaction tax in Wales
• Getting up-to date surveys and reports
• Conveyancing fees
• Search fees
• Building insurance 
• Moving costs
• Home repair and improvements 
• Mortgage costs and life insurance 
• Service charges and ground rent in leasehold properties (if appropriate) 

In preparation for applying for a mortgage you may wish to consider checking your credit score. Mortgage lenders will also consider various factors such as your income and outgoings and will need to consider any changes that may affect whether you would be able to afford the mortgage repayments e.g. increase in interests rates or redundancy. If you have any outstanding debts on credit cards or loans you may wish to try and clear these as these monthly repayments will be factored into the amount you can borrow. 

ID is an important thing to have to hand during your property purchase as estate agents, lawyers and mortgage lenders will all need to carry out anti-money laundering checks to check your identity to comply with the law and prevent fraud. These documents will be needed several times during the process, other documents such as proof of funds will also be required. This may come in various forms from another property, savings, inheritance and financial gifts from friends or family. These are legal requirements which are put in place to safeguard the transaction. 

When making an offer on a property it is important to remember that all asking prices' are negotiable. Before you consider putting forward an offer you may want to consider the following points. Does the property include white goods? What is the average price for similar houses within the are? Is the property leasehold/ is there ground rent and service charge to pay? What is your top budget? Is the seller in a chain? What is your appeal as a buyer, are you a first time buyer or paying with cash? 

After these steps have been taken and your offer has been accepted you will need to instruct a legal representative. Once instructed they will identify any title or planning issues regarding the property being purchased and can advise you on which searches to have carried out. They will also do the transferring of ownership from the seller to yourself. This work can be carried out by solicitors, licensed conveyancers and chartered legal executives and Cilex practitioners. When choosing a legal representative you may want to ask what the full amount that will need to be paid. The quality of service they provide, look into recent reviews. Make sure you know who your main point of contact will be through the process. Once you have chosen and instructed a legal representative you should receive a letter of engagement which outlines their terms and agreements, costs and timescales. 

Once your offer has been accepted and you have instructed a legal representative. You will then need to start sorting your mortgage. You will now have to complete a full mortgage application with a lender, make sure to select a lender who offers you the best deal for your property purchase. In some cases a mortgage interview may be needed, the mortgage company will then carry out a mortgage valuation to see if they are happy to lend against the property. 

Your legal professional will then organise local authority searches on the defined land or property. This will inform you of any restrictions related to the land or property. If you have any concerns you can request a specialist search, searches are something which you typically pay for upfront. It may also be possible to take out an indemnity insurance to protect against issues uncovered by the property searches. Its important to note that searches are only valid for a certain amount of months and may need to be redone. 

What exactly is a survey? 

A survey is a detailed inspection of a properties condition. (Please remember that both a mortgage valuation and EPC are not home surveys). A survey is very useful as it will advise you on any maintenance and major works that need to be done now or in the future. This will need to be carried out by a trained professional, members from: RPSA, RICS and ISVA are all recognised. You might be advised to use a particular surveyor, however it is your choice on who to use. It is important to read through the report once you have received it and speak through it thoroughly with your surveyor. If any significant issues are uncovered by the survey you can ask the seller to pay for them to be fixed before your purchase the property. 

Fraud

When buying a home it involves the transfer of large sums of money and can attract the attention of criminals. It is important to know that it is extremely rare for legal representatives to change their bank details. If you have any worries regarding this, do not transfer any money. Make sure to be cautious when sharing any information on social media regarding the dates that the offer was accepted, moving date and where your property is located. This information can be used for fraudulent purposes.  

Point of exchange 

Exchange is when the buyer and the seller exchange their signed agreements which legally bind them, committing them to the sale transaction. Your solicitor will advise exchange once you are happy with the searches, survey and contract.  

Once your mortgage has been confirmed with your lender, you are able to pay the deposit and all other costs such as stamp duty and removal costs. You must have buildings insurance organised in order to exchange. Once the exchange of contracts has taken place the completion date will be confirmed. This will normally take place 2-4weeks later. However, sometimes this can occur simultaneously. The exchange of contracts is an official legal commitment. If you withdraw from this agreement there may be financial implications such as losing our deposit. Alternatively if the seller withdraws then as the purchaser you may receive some compensation. It may be a good idea to purchase some life insurance before the exchange goes ahead. 

 Moving Belongings

If you are using a professional removal company make sure you give them as much notice as possible. You may want to consider the following things when choosing a removal company: Price, quality of their service and availability, if they are members of a trade association. If they have insurance in place, what are there reviews like. Check the small print for any additional charges, also if the property is hard to gain access to make sure you contact the moving company so they have an opportunity to access the property before the removal date and give you a tailored quote.

Moving preparations 

Between exchange of contracts and completion make sure you confirm your move date with your removal company. Contact utility, water and broadband providers to close or move your old accounts over in preparation. Consider taking out contents insurance to cover your belongings, organise for your post to be re-directed, ask the seller for a visit to measure up prior to the moving in date. Make sure you know where the fuse box, energy metres and stopcock are located. Order any appliances you might need and start packing! 

Completion 

Upon completion your legal representative transfers the remaining funds to the seller's legal representative and you take ownership of the property. The keys are then handed over around lunchtime. Some key things to remember: remember to take metre readings when you leave your current property and when you arrive at your new one. Pack a small box of essentials that you might need for the first day/two days in your new home whilst you unpack. You may also wish to get the locks changed so you can ensure you are the only ones with a set of keys. 

Once you have moved home you may wish to update the following: Local authorities of your new and old property to get your council liability transferred. Electoral roll, utilities and water, GP and dentist, DVLA, bank or building society, insurance company, pension scheme, mobile phone tv and internet packages. 

If you need to make a complaint about any, of the services you have used during the process of buying your home then the first steps is to contact the relevant company complaint procedure. If you are not happy with their final response then you can escalate this to an ombudsman. The ombudsman provide free and independent advice for consumers. They will investigate the claim on your behalf, all estate agents are required to be signed up to a redress scheme. The property ombudsman or the property redress scheme. If you have an unresolved complaint with a legal professional you should contact the legal ombudsman. If you wish to complain about a lender then you must contact the financial services ombudsman. 

This information can also be found on our Instagram page under @jamesperryestateagents

I hope this helps! 

Willow Barden-Phelps