Buying FAQs

If I have a property to sell, do I sell or find first?

Sell first. It is common that we get more than one interested party offer on a property. Sellers naturally want property sales to begin as quickly as possible, and so the deciding factor between two competing parties often comes down to their position. A buyer who can proceed immediately is far more appealing than a buyer who still needs to sell, potentially delaying the transaction by weeks or even months. If a buyer likes your property enough, they will wait for you to find, and having that buyer waiting will put you in the best possible position to ensure your offer is accepted when you do.

How much can I borrow?

The amount you will be able to borrow will be based on your income and how much you have for your deposit. The best thing to do would be to speak to a mortgage advisor and ideally get an agreement in principle from a lender before you start viewing, as this can help speed up the process. To get an idea on the amount you could potentially borrow, we would suggest speaking to our recommended mortgage brokers; Chambers (link).

How do I make an offer on a property?

Once you have viewed a property that you like, you will need to contact the estate agent, who will take your offer subject to contract and request proof of how you will be financing the potential purchase – as an example, requesting to see your mortgage agreement in principle. Once the agent has this, they will contact the seller and discuss the offer, taking various factors into consideration alongside the price, such as your ability to proceed and the length of a potential chain. Once the seller has decided, the agent will let you know if the offer has been accepted, rejected, or if the seller has a counteroffer. The agent will then liaise between the two parties until a decision is made, confirming all offers in writing to both buyer and seller.

What items must the seller leave at the property?

Almost all items in a property can be removed, including carpets and light fittings. Before contracts are signed, the seller will provide a fixtures and fittings list that will confirm what they intend to take away and what they will leave, sometimes proposing to sell these items to the buyer if they want them. Offers on a property can also be agreed with the condition to leave certain items, for example the oven. Any item that the seller has agreed to leave, either as a condition of the offer or as stated on the fixtures and fittings list, must not be removed upon completion.

What happens when an offer is accepted?

Once you have been notified by your agent that your offer has been accepted, you should formally instruct your solicitor to begin the conveyancing process and submit money for the searches. Your solicitor will keep this money on account and will only apply for searches once they have received the draft contract from the seller’s solicitor. If you have already been given an agreement in principle by a lender, you should get in contact with them to start the process of formally submitting an application for the required amount.

Is an accepted offer legally binding?

This offer is made subject to contract and therefore is only legally binding once the contracts have been exchanged. Either party can pull out of the sale at any time up until that point without being penalised.

Do I need a solicitor?

You will need a solicitor to act on your behalf throughout the purchase. The conveyancing process in England can be complicated at times and it is important that you have a solicitor liaising with the other solicitors involved in the chain, ensuring everything is carried out correctly and you are protected.

What are searches?

Searches of the Land Registry and Local Authority information will be applied for by your solicitor and will be checking for planning history, as well as any potential developments around roads, drainage and mining near the property.

What is an Energy Performance Certificate (EPC)?

Energy performance certificates were introduced in 2008 due to a European directive to assist the government in reducing the CO2 pollution from residential property. In order to sell a property, it must have a valid EPC.

An EPC lasts for 10 years unless substantial alterations have been made to the property, for instance a new gas boiler. If the EPC for the property you are buying is getting close to its expiration date, your solicitor may request a new one. The energy rating runs from A – G and there are no current rules regarding the minimum rating that is acceptable to sell. However, certain mortgage lenders are requiring low EPC ratings to be increased before a mortgage offer will be released. Within the certificate are recommended improvements which, if undertaken, show the potential score the property can achieve.

All properties with an EPC are logged on the national EPC register. This can be accessed by anyone online as it is a public document. The EPC graph must be displayed on all marketing material for the property. The only person who can carry out an EPC is a government approved energy assessor.

If you are buying as an investor, the property must have an EPC rating of A – E; this is so that a tenant can occupy the property.

How long will it take to complete the purchase?

We usually advise that a transaction can be expected to take around 12 weeks to complete, however, there are any number of factors that can affect this. If there is a chain of several properties involved, you can usually expect a transaction to take longer than if there is only one property being sold. The more parties involved, the more issues and delays that can arise. Your agent will monitor the progress of your purchase and any related chain and try to help push things along when necessary.

What other costs do I need to be aware of?

Solicitor's fees – You should always ask for a quote before instructing a solicitor as these fees can vary quite widely. These quotes should include a breakdown as to exactly what is included in the price. For more information on the solicitors that we recommend, please contact us.

Mortgage costs - When applying for a mortgage, the costs will typically include an arrangement fee based on the amount you borrow, as well as a valuation fee. For more information on the mortgage brokers we recommend, please visit their website here (link to Chambers).

Stamp duty Land Tax – This is a tax paid on all property sales over £125,000. Please use our Stamp Duty Calculator (https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro) for an accurate figure.

Is a survey required?

It is not a legal requirement to have a survey; however, it is always advisable to have one carried out. There are three different types:

A mortgage valuation – The lender will insist on carrying out a formal valuation to reassure them that the property is sufficient security against the loan.

A homebuyer report – This is a detailed, visual inspection of the property. It can only be conducted by a qualified chartered surveyor and will highlight any issues that may require further investigation.

A structural survey – This is required for older properties, or those that have undergone major structural changes or have been constructed from unusual materials.

When do I need to arrange insurance?

You will need the property insurance to begin from the date the exchange of contract takes place. We would recommend arranging home and contents insurance shortly before you sign the contract.

What is exchange of contracts?

Both the seller and the buyer sign identical contracts, and then these are exchanged between the solicitors for each party. You may be asked to sign this contract as early as possible during the conveyancing process. However, the exchange of these contracts will only happen once all the enquiries have been satisfied, all parties involved are in agreement that everything is in order and a completion date has been confirmed. Then you will pay the deposit, typically 10% of the purchase price, which your solicitor will hold. At this point the sale becomes legally binding.

What happens at completion?

The monies for the purchase - your deposit and the lender's sum - will be transferred to the seller's solicitor; it is only at this point that the sale is complete. After completion your solicitor will register your purchase with the land registry and confirm your lenders security on your title.

When do I get the keys?

The keys are released at completion of the sale. Once your agent has been notified by the seller’s solicitor that they have the monies for the sale on account, they will inform you when and where the keys are to be collected from.