Guide to Purchasing a House In the UK
Posted in Uncategorized by: propertyguruIf you are new to the United Kingdom property market, the guidance in this report may prove useful.
A Home Information Pack (HIP)* must always be give by the vendor of a home in England.. The HIP must contain a sale statement, evidence of title, standard searches and an EPC – Energy Performance Certificate.
*Note: on 20th May 2010, it was announced that the new UK coalition government were going to suspend HIPs, so seek further advice.
Normally you would engage a a solicitor to conduct your conveyancing. He or she will approve the draft contract which explains the price and any special terms or conditions of the sale, undertake the Local Authority search, and verify details of freehold or leasehold title. The solicitor will also make sure a satisfactory mortgage offer has been issued, get your signature to the contract, make sure the purchaser is in a position to exchange especially if there is a chain, and set a completion date.
Once a valuation has been obtained, either for your own purposes or for the benefit of the mortgage company, and when the whole “chain” are ready to sell and buy their properties, exchange of contracts occurs. It is at the exchange of contacts stage that a deposit has to be paid. This will normally be between 5% and 10% of the full purchase price of the property and is held by your conveyancer. If there is any problem with your purchase of the property after this date, maybe if your building society fails to provide you with your expected mortgage, the other parties in the chain of purchases can claim against your deposit to cover their costs. After this stage, it would be difficult to withdraw without incurring financial penalties.
Completion is the final stage, when keys and money are handed over. From completion, you become liable for buildings and contents insurance on the property, so you must make sure that proper cover is sorted out. If you are buying a brand new house, the the buyer’s solicitor requests a standard form of contract from the developer then the procedure continues in the same way as we have previously discussed. You should also be aware that some developers, streamline the whole process for the buyer, offer a complete service including financial and legal advice. It is recommendedthat you retain your own solicitor, to avoid any conflict of interest.