Our in-depth guide to buying a property will take you through the buying process step by step, with plenty of useful information and advice to help you with your journey. For more information on buying property across Lewisham, Catford, Bromley and surrounding areas, please don't hesitate to get in touch here or call 020 8852 4441.
Acquire Finances First
To make sure you get your home journey the best start, we recommend that you arrange your finances before you start your property search. Whether this means finding a suitable lender and agreeing a mortgage in principle, or making independent funds available for a property purchase, establishing your financial situation beforehand will give you a realistic budget to work with and ultimately determine your property search.
In the event that you haven’t arranged finance or you are looking for mortgage deal comparisons let us know and we will be able to arrange one of our independent mortgage brokers to give you a call.
Obtaining The Best Mortgage
Speak to your bank, mortgage company or financial adviser to get an idea of how much you may be able to borrow. It will be wise to go through a pre-application with your preferred lender as they will carry out the necessary financial checks which will help speed up the process later on.
Whilst majority of buyers would use their current bank ho they have a relationship with, it would also be a good idea to speak to an independent mortgage advisor who can offer rates from various lenders and may be able to shop around the ebay deal for you
Using a broker can save a great deal of time, money and hassle in getting a mortgage, however, do check if they charge a fee for their services.
Other Purchasing Costs to Consider?
In addition to the property price, there are a number of additional purchasing costs that you need to take into account when budgeting for your next purchase.
Typically, these will include the following expenditures:
- Legal fees including conveyancing fees, local authority search fees, land registry fees and bank transfer fees
- Stamp Duty Land Tax (SDLT). Find out more about this here.
- Survey and Mortgage Valuation fees. Your lender will require a Mortgage Valuation Survey to be conducted as a risk assessment to satisfy their lending criteria. In addition, buyers are advised to have an independent home survey carried out to assess the condition of the property.
- Mortgage arrangement fees (if applicable)
- Service charge and ground rent (if leasehold)
Relevant consideration
Up to £250,000 - 0%
The next £675,000 (the portion from £250,001 to £925,000) - 5%
The next £575,000 (the portion from £925,001 to £1.5 million) - 10%
The remaining amount (the portion above £1.5 million) - 12%
For the purchase of a second home, an additional 3% is due on the total amount of the purchase price. There is also a 2% SDLT surcharge payable for international buyers.
Different SDLT rules and rate calculations apply for corporate bodies, companies and trusts buying residential property, and multiple purchases or transfers.
Searching for your property
Once you have a clear budget to work with, it’s time to start doing your homework. Draw up a list of requirements that the right property should provide, and match these to the available budget. This can be a delicate task that will involve asking many important questions, such as:
- How many bedrooms will you need?
- Do you favour new-builds, modern homes or period properties?
- Do you have (or are planning to have) any children or pets?
- How important is private outdoor spaces such as a patio or garden?
- How much of a priority is private or on-road car parking?
- Will you be commuting to work by foot, bike, car or public transport?
- How important are local shops, bars and restaurants?
Make the most of viewing a property?
Depending on the market, we recommend that you view as many properties as you can within your price range to get the best overview of values in your chosen area. In a buoyant market, stock can go quickly which requires quick decision making and often with minimal choice.
We also recommend that you check out the location of the property at different times of the day and night. This allows you to know exactly what the neighbourhood is like and can avoid a potentially expensive mistake investing in a property in a location that doesn’t suit your lifestyle.
How do you make an offer on a property for sale?
Once you have found a property that you would like to make an offer on, contact our office by phone or email and we will submit the offer on your behalf. It is a good idea to ensure that you also include an offer by reiterating the positive points that position you as a strong buyer including:
- Your proposed timescale
- Whether you have a mortgage offer in principle, and
- If you have an agreed sale for your current home.
- We will inform the seller of your offer, both verbally and in writing.
Any offer you make on a property will be subject to contract and will not be legally binding for either party until contracts are exchanged. Make sure you have a good solicitor to act on your behalf throughout the conveyancing process, as this can make all the difference to achieve a smooth transaction. If you need advice on instructing a solicitor, just let us know.
What happens after the property sale is agreed?
Once your offer has been accepted by the seller, the agreed sale terms will be confirmed in writing to all parties as a Memorandum of Sale. You will also be asked to provide proof of ID and proof of address to comply with HMRC Anti Money Laundering requirements.
You now need to instruct your legal representative to start the conveyancing process, while your mortgage adviser/lender needs to move your mortgage application (if applicable) on to the next level.
For your own peace of mind, you are strongly advised not to rely on the Mortgage Valuation Survey but to have an independent property survey carried out.
The legal process for buying property
The seller’s solicitor, having obtained the property’s title deeds and any other relevant documentation, will prepare a draft Contract of Sale and a property information pack. Your solicitor will then go through all the papers received by the seller’s solicitor and raise any queries that need answering.
What does ‘exchanging contracts’ mean?
Under English law, exchange of contracts is the point at which a property transaction becomes legally binding. Before exchange, both the seller and the buyer are free to withdraw from the transaction at any time without penalty.
Once contracts are exchanged, however, both parties are contractually obliged to complete the purchase/sale. The deposit payment is transferred, a date for completion is set and confirmation is provided that all the legal paperwork is either already in place or is guaranteed to be in place before completion. Should either party choose to pull out after contracts have been exchanged, there would be financial penalties.
What happens after contracts are exchanged?
After the Contracts of Sale have been signed and formally exchanged, and the deposit transferred, the countdown to moving home begins in earnest. If you are selling and buying a property at the same time, this will involve a considerable amount of organisation. We recommend that you start making arrangements in good time. Key points you should be addressing now include:
- Booking a removal firm
- Transferring utility accounts to the new address
- Notifying all important contacts of your change of address
- Redirecting postal deliveries
- Arranging home insurance at the new property from the date of exchange
- Obtaining parking permits etc for the new address
- What happens on the day of completion?
- Once the seller has vacated the property and the seller’s solicitor confirms that the remaining monies have been received, completion can take place. This is normally around lunchtime, but exact times can vary.
You may be feeling concerned, nervous or excited about the prospect of finally moving into your new home – after all, it has been a long journey to finally get to this point.
Completion is the final legal step in your property transaction. It is the day on which the buyer gets the keys to their new home and takes possession.
Our Advice & Tips
We understand that buying a property can be a daunting experience and may be a rather stressful process. Whether you are a first-time buyer, moving up the property ladder, investing in buy-to-let or downsizing your home, our guide to buying a house or flat in London shares some useful tips to help you make the journey a little bit easier.
Set a realistic budget
Buying a property is a major investment that requires careful analysis. In addition to getting a mortgage arranged, you will need to have funds available for the 10% deposit, stamp duty, legal and surveyor fees, estate agent fees (if you are selling a property) and removal costs. Ensure that you leave yourself plenty of financial headroom for unexpected expenditures.
Sell before you buy
Don’t be tempted to put in an offer to buy a property unless you have a sale agreed on your current home. Ideally, your buyer should have a completed chain or be chain free. Sellers will favour buyers who are in a good position to proceed, so make sure you are in the strongest possible position to maximise your chances of purchasing your dream home.
Secure a mortgage in principle
Unless you are able to proceed as a cash buyer, we strongly advise that you have a mortgage in principle agreed by your lender at the earliest opportunity. Making an offer with a mortgage in place will make you a pre-qualified buyer, meaning that you will be more likely to be favoured over a buyer who has yet to get their finances in place.
View the property several times
We highly recommend that you visit your preferred property at least twice. Take your partner or a friend with you for that all-important second pair of eyes, and take photos or videos (ask permission first) of the property to remind yourself of the details later. It is a good idea to revisit at different times of day to check the light, the neighbours, the noise etc.
Keep communicating
Do what you can to facilitate communication to keep your purchase on track until the transaction has completed. Keep all lines of communication open between your solicitor, your agent and yourself to increase the chances of the purchase progressing smoothly and without any hiccups