How To Buy A House

Buying a House

Buying a House is an important financial decision you have to make. There are many things you have to consider before you can make your decision. Here are some of the important steps you need to consider before you buy a house. How to buy a house in UK is explained step by step in this short article.

The Location. First of all you and your friend/partner will need to decide where you want to buy property. You should to have clear idea of what sort of amenities you need nearby and what your requirements are from the property.

The Finance. The second step is to add up all the money you have at your disposal to use as a deposit the cost of furnishing the property and relocation. A good financial advisor or mortgage broker can help you in this task. They will help you choose the right mortgage and the best offer you can get. They will help you with your application and you will receive a ‘decision in principle’ on the amount you can borrow to buy a house or flat.

Estate agent and Solicitor: Once you have worked out your ideal location to live and finance available to you, the next step is to be in touch with a good estate agent and a property solicitor to carry out the legal aspects of the house-buying process. This is known as  conveyancing, and  your solicitor must also draw up any agreements if you are buying a house with a friend or partner.

The Choice: With help of Estate agent start looking at properties that fit the bill and are within your budget. Don’t waste time looking at UK properties that don’t meet your basic needs or you can’t afford.  Make an offer to buy the property based on what you have seen but make it subject to survey and contract.  If the person or house-builder accepts your offer and conditions, ask the estate agent (if there is one) to take the property off the market.

The Buying Process:  Instruct your solicitor to act on your behalf and give him the details of the property location, and the vendor’s estate agent.  Your conveyancing solicitor will contact the vendor’s property solicitor requesting title deeds to the property. He will start contractual proceedings. Find a surveyor and ask for a home-buyers report or a survey to be carried out. A full structural survey will give more information, but is not a legal requirement and it is up to you whether you consider it a good use of money. Remember that if you do not have a full structural survey you will have no comeback should asbestos, dry rot or subsidence be found later.

The Exchange of Contracts: The mortgage lender will carry out an independent valuation of the property, and you will be required to pay for a mortgage survey.  Your mortgage lender, on sight of the property valuation and data backing up your application agrees to lend you the money for the property.  You should then send a copy of your survey report to the solicitor. He will give you his view on it and you may want to discuss his findings. You may be able to ask for a slight reduction on the price or some remedial work to be carried out pre-sale.

The solicitor will check the property, carry out his local authority searches – which you may want to add to – and find out if any alterations to the property have been made. This would be the time to negotiate a price for fixtures and fittings. Your solicitor will finalise the details in the contract of sale/purchase with the vendor’s solicitor and confirm mortgage details with your mortgage lender. You then pay a deposit into your solicitor’s account. He holds it there until exchange of contracts.  On the day of exchange of contracts, your solicitor exchanges contracts with the seller’s solicitor and sends your deposit over. A date for completion (when you can accept the key and move in), which will have been proposed before-hand is agreed upon. If you buy a new house, there is no chain and this step of agreeing a date is much easier than when a chain is involved.

The Completion: Your solicitor will liaise with your mortgage lender to ensure the mortgage is available for the completion date.  Your solicitor will prepare the property transfer deed, which is signed by you and the seller and lodged with the seller’s solicitor until completion. The mortgage lender transfers the money into your solicitor’s account ready for completion.

Home Owner:  On completion day, the day you can move in, your solicitor transfers the money to the sellers’ solicitor in return for the transfer deed, Land Registry certificate and the keys. The sale is then completed.  Your solicitor arranges for the transfer deed to be stamped, pays the stamp duty and sends the transfer deed to the Land Registry to record you as the owner. Your solicitor passes the deed to your mortgage lender to act as security for the loan and then he will send you the bill for his services and costs.

 

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