Buying Tips
Buying a home can be a daunting experience even if you have done it before. It is stressful but also one of the most exciting and memorable events in life. So how can you get the most out of your property purchase?
1. Your budget - assess how much you can afford
2. Your needs - look at the practicalities, buy for the right reasons
3. Arrange viewings - research on the web, shortlist and view
4. Make an offer - understand how to put forward an offer
5. Offer accepted - make sure you are ready to move forward
6. Surveys - these are normally tied to mortgages
7. Legal work - choose your solicitor carefully
8. Exchange - the really stessful part, the chain comes on
9. Completion - ready to move?
First Time Buyers
You could be forgiven for thinking it's all doom and gloom for today's first-time buyers. But there are ways to make it more affordable, such as buying with a partner or friends.
The obvious advantage of buying with someone else is that it allows you to buy a bigger and possibly better home in the area of your choice. However, it's always advisable to rent together first for at least six months first; if there are too many disagreements, it's much easier to walk away from a tenancy agreement than a joint mortgage.
Viewing properties
It's important that the estate agents regard you as a serious applicant. Show willing and be eager to view, and you'll be top of the list when something new comes on the books. Call them regularly - they'll think of you first when a property comes on the market.
Here are some useful tips to keep in mind when looking for the house of your dreams:
- View the properties as soon as possible. Leave it too long and you could lose the house.
- If two of you are buying and you have children, decide which one of you will be the chief viewer, whose job it is to weed out all but the strongest candidates.
- If you're tempted to buy a run-down property to renovate and sell on, check how long it's been on the market. If it's been there a long time, it suggests there isn't a lot of profit to be made.
Offers and Chains
It's human nature to try to strike a deal, but if you find your ideal home and it seems to be priced correctly, consider offering the full asking price. This means you'll be taken seriously, there won't be any time-wasting and it will lessen the possibility of another party stepping in (see Gazumping, below).
Most house are sold as links in a chain but, unfortunately, one in three property chains fall apart. This can happen for numerous reasons, from one party not having their finances in order, to an unpleasant surprise in the survey.
The best way to ensure a chain progresses smoothly is through good communication. Stay in regular contact with your solicitor and estate agent to make sure everything possible is being done to speed things along.
Gazumping
Gazumping - outbidding rivals at the last minute - is a horror estate agents are powerless to stop (even if they wanted to!). Under the Estate Agency Act, they're obliged to pass on all offers they receive.
- Offer the full asking price and request the property be removed from the market.
- Be flexible with the vendor and don't quibble over minor points.
- Make it clear you're willing to complete on their timescale, not yours.
- Be nice to the vendor - if you've established some kind of relationship with them, it should be harder for them to let you down.
Stamp duty
If the purchase price is over £125,000 the Transfer Deed will have to be submitted to the Inland Revenue and Stamp Duty paid at:
1% of the purchase price up to £250,000,
3% for over £250,000 and up to £500,000 and
4% for over £500,000.
This is payable on completion of your purchase. Please note the percentages are based on the whole amount.
Freehold / Leasehold
If you are a leaseholder, you own the lease to your home, but the freeholder is the legal owner of the land on which the building is situated. The lease gives you the right to live in your home for a certain amount of time. The length of a lease can vary but usually starts at 99 years and can be as much as 999 years. The time left will reduce as the years go by and will eventually run out. For example, you may have 75 years left on a 99 year lease.Leaseholders normally have to pay charges to the freeholder, or to a property company acting on her/his behalf (a managing agent).
The freeholder owns the land on which your home is built and has the right to collect ground rent and service charges from any leaseholders in the building. The freeholder could be an individual, a private company, a council, or a housing association.
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