Before buying a property it is important to know exactly what is involved. The following step by step guide to buying a property in England should help you understand the process and the things you can do to make the process go as smooth as possible. Please feel free to contact Property World should you require any additional information.
Step one.Work out your budget
Step 1: Work out your budget
Before you can begin to search for your ideal property, you need to work out exactly what you can afford. Begin by speaking to a mortgage lender or financial advisor who will be able to confirm what you can borrow. This figure added with your deposit is your budget – the amount you can afford to spend on a particular property. Don't forget to factor in the other costs associated with buying a property, such as stamp duty, survey costs, solicitor fees etc.
Step 2: Arrange your mortgage
Once you have found out exactly what you can afford, it is time to pick the particular mortgage that best suits you. There are thousands of mortgage available so make sure you speak to a financial advisor as well as some mortgage lenders so that you get the best advice possible and can compare a range of different mortgage products. Questions you will need to consider include: interest only versus repayment mortgages, fixed term rates versus trackers, redemption fees etc. Take your time as this is a very important decision.
Once you have made your choice, now is a good time to set yourself up with an Agreement in Principle (AIP) from your preferred lender. This will show vendors and agents how serious you are and may give you an advantage over other buyers. It should also save your time once you have actually found a property you want to buy.
Step 3: Identify your search criteria
You will no doubt be desperate to start viewing properties at this stage but before you do, it is advisable that you draw up a short list of the things that you are actually looking for and are most important to you. For example, preferred locations, number of bedrooms, age of properties you will consider, freehold versus leasehold, whether you want a garden, off street parking etc. Spending a little really thinking about the things you want will save you a lot of time in the long run and mean you get the most from an estate agent.
Step 4: Start looking!
Now the fun can really begin. Register your details (being as specific as you can ) with all the agents in the area you want to live in, sign onto the property portals (so you get alerts when new properties are marketed) , book some viewings and find that property! Make sure you find out all the information you can about properties you are interested in, i.e. how long has it been on the market, why is the vendor selling, how much are the service charges (if leasehold) etc. The estate agent has a duty to answers your questions.
You may be lucky and fall in love with one of the first properties you view – if so well done but more likely, the process of finding the right place can be a slow and drawn out affair. Don't lose heart, as you WILL find a property that you want to buy.
Step 5: Make an offer
Once you have found a property you want to buy, you will need to agree a sale price with the vendor. This is typically done through your estate agent. Remember that if you like the property others may also, so act quickly so that you don't miss out. Put your offer to the agent who will present it to the vendor and confirm your offer in writing. This first offer may not be accepted by the seller so you may have to increase it in order to agree a sale price. Once successful, the estate agent will confirm in writing that your offer has been accepted by his vendor and that the property has been taken off the market.
Step 6: Instruct a solicitor and apply for your mortgage
So you have found a property to buy and negotiated a sale price. The next step is to formally apply for your mortgage and instruct a solicitor.
The mortgage application will involve providing your lender with the full details of the property you want to buy plus personal information so the underwriters can confirm your credit history, financial situation etc. Picking a solicitor (particularly if you haven't used one before) can be a difficult business. Try and get a recommendation from friends, family or your estate agent so you can be confident of their professionalism and expertise. Solicitors play an important role in the purchasing process so picking the right one is vital.
Step 7: Surveys and convenyancing
Once your mortgage application has been accepted, the mortgage lender will arrange a basic valuation of the property. The aim is to confirm that the property you wish to buy is worth what you have agreed to pay for it. You can also choose to commission a more detailed survey of the property to ensure there are no structural, damp or other problems with the property that you should be aware of. If any problems are raised you then have to make a decision about how serious you consider they are and how you wish to proceed i.e. whether you wish to re-negotiate the sale price or ask the vendor to remedy some of the problems. The two surveys you can commission are a Full Structural Survey (the most detailed and most expensive) or Home Buyers Report (less expensive but still a comprehensive examination of the property). Take advice from friends, family or colleagues if this is your first purchase as to which best suits your needs.
At the same time, your solicitor should have begun the legal work on your behalf. Their role is to ensure there are no legal problems with the property you wish to buy. They should check and provide the following: evidence of title, copy of the lease (if applicable), water and drainage searches, energy performance certificate, land charge searches. Your solicitor will also raise enquiries with the seller's solicitors when they feel more information is required. This whole process can take up to ten weeks (sometimes longer) and is often considered the most stressful l and frustrating part of buying a property. The best solution is to remain in constant contact with your solicitor so you are always aware of what stage they are at and to stay patient.
Step 8: Mortgage offer
If the survey conducted by your lender is successful, they will issue a formal mortgage offer. This is a vital stage because it confirms the lender will lend the amount you wish to borrow for the property you are buying. Ultimately, it is only now that you truly say you have the funds to successfully purchase the property.
Step 9: Exchange of contracts
Once your solicitor has approved the contract and all the relevant documentation is in place, you will meet with them to sign the contract and pay your deposit. The deposit is typically 10% of the purchase price though it can be more or less than this. Once both parties have signed, then the solicitors are able to formally exchange contracts and after instruction from their clients, confirm the completion date.
Step 10: Completion & move in
On the date of completion, your mortgage lender will release the necessary funds to complete the purchase. On receipt of these funds, your purchase will be complete and the agent will be instructed to release the keys to your new home. Congratulations! You are the now the legal owner and able to move in.