Talking about a crucial financial investment, buying a home is the top one. It’s not just the financial part you would have to think about but there are tons of other dos and don’ts that come to mind too. Our timeline defines perfectly about the main phases of buying a house and what fees you can expect.
Information you will find in this section
Stage 1 – Finding a property you can afford
Stage 2 – Viewing & Making an offer
Stage 3 – Organise a solicitor and surveyor
Stage 4 – Exchanging contracts
Stage 5 – Completion and final steps
Stage 1 – Look for the Property that Fits into Your Budget
Before you start on with any of the house buying process, make sure you are having a clear idea about the amount you can easily invest for buying a house.
Stage 2- Survey and Present an Offer
When you have found your desire home which you are interested in buying then decide to make an offer you are going to present to agent.
Stage 3- Arrange for a Lawyer and Chartered Surveyor
The lawyer you will hire will handle all the official work there is to do for the property. On the other hand, the chartered surveyor will take a good look of the property and examine if there are any encountering problems which might affect the cost of the home.
Your lawyer will let you know about the cost you should expect and ask you to pay a certain upfront deposit (usually 10%-50% of their fee).
Usual Cost- £1,500 to £2,000
Your lawyer will submit everything to the council of your area to confirm for any local issues or planning that might be responsible for the value of the property.
Usual Cost- £400 to £500
Survey for Valuation
This is the part that the buyer has to conduct to ensure that everything the property has got is worth his investment. You need to conduct this survey to find out if there are any hidden defects in the property that they surveyor might have overlooked in order to avoid future problems.
It’s your property, so it’s in your interest to pay for a decent survey at this stage. It can also help you to renegotiate the price.
For example, if the survey reveals a problem with the home that will need £5,000 to pay for repairs, you could ask the seller to lower the price by that much.
The most vital thing among everything is the structural survey which is a lot detailed than anything else and is appropriate for all kinds of residential property. It is usually best for the residential property that requires repairs. Usual cost- £750
Interact thoroughly if things turn up unexpectedly
In case, you encounter any problems, the key solution is for your lawyer to stay in contact with the seller of the property. Communicating like this often resolves complex situations between both the parties.
Stage 4 – Exchanging contracts
When you have ensured that everything is good then you should proceed with the contract signing and seal the deal.
Go through everything once again with consultation to your lawyer to make sure the details in the agreement are precise and accurate, before you sign. You need to be satisfied with the agreement with the seller and make sure every query you have come up with is answered by the seller.
Here, you and the seller will be proceeding the contract which might require the buyer to pay a holding deposit around £5,000 to £10,000 or the typical 50% deposit of the entire price you are buying the house on.
To cover the structure of the property, you will be needing the insurance plan for the building after exchanging the agreements.
Stage 5- The Final Process
The final process usually requires a deadline of four weeks during the exchange of the agreements and the sale completion. However, the timeframe can be changed according to the mutual agreement of the buyer and seller. Once everything in the sale has been completed then certain charges will be left to pay:
The money for buying the property/house will then be transferred from the lawyer’s account to the seller’s account.
After this you will be paying the lawyer’s bill.
Your lawyer will register the contract at the Land Registryin Wales and England. Whereas, in Scotland it is registered at Registers of Scotland and in Northern Ireland, the contract is registered at Land Registry. You can view the timeline for more information on buying property in Scotland.
When the deal is sealed, the buyer and the seller is supposed to pay the fee on mutual agreement. The fee is usually the percentage of the price of purchase (1% to 10% of the sale price). Along with this, fixed consultancy fee is also required.
The buyers who have purchased the property of £125,000 get 30 days of completion to submit the fee of theStamp Duty. Your lawyer will assist you in this case too.
The Stamp Duty rates are as follows:
- 0% on property value up to £125,000
- 2% on the next £125,000 (portion up to £250,000)
- 5% on the next £675,000 (portion up to £925,000)
- 10% on the next £575,000 (portion up to £1.5m)
- 12% on the remaining amount (portion above £1.5m)
If you are interested in purchasing another buy-to-let property then you will have to pay 3% extra amount on the Stamp Duty, from April 1, 2016.
Once the sale has gone through, you’ll need to start thinking about moving home. If you’re using a removal company consider moving on a weekday which is cheaper. Typical cost: £300-£600+.