Frequently Asked Questions
- How long will it take?
- How soon do I need to pay any money?
- Do I need a survey?
- How much deposit will I need?
- What searches do you carry out and why?
- When do I need to arrange buildings insurance?
- Joint Tenants
- Tenants in common
- What happens with the keys?
An average transaction, where the purchaser requires a mortgage and there is a chain, will usually take between 4-6 weeks to exchange contracts. Then another 2-4 weeks between exchange of contracts and completion making a total of 6-10 weeks from start to finish. However, this largely depends on the length of the chain, generally the more parties there are in a chain the longer it will take, if only because this increases the chances of potential problems.
We will do everything that we can to progress your transaction as quickly and efficiently as possible but we cannot offer any guarantees regarding timescales - and you should not believe anyone else who claims they can!
How soon do I need to pay any money?
If you are purchasing a property we will ask you for approximately £150.00 at the beginning to cover the initial searches. Credit will then be given for this payment in your final completion statement. The balance of the purchase price and the solicitors costs etc will be payable shortly before completion unless you are borrowing more than 90% of the purchase price in which case it may be required prior to exchange of contracts.
If you are just selling and not purchasing, we will ask you for an initial amount of £50 to cover the cost of obtaining copies of your title documents from H M Land Registry. A credit will then be given for this payment in our final completion statement to you. The costs and agents fees will be paid out from the sale proceeds on completion before any balance is sent to you.
Before committing yourself to buying a property we strongly recommend that you obtain a Survey Report. If you have applied for a Mortgage to assist you in your purchase then your lender will require a Mortgage Valuation Report prior to agreeing to the lend. This is not a detailed report and cannot be relied upon if a problem subsequently arises after you move into the property.
There are three types of report available: -
- A Mortgage Valuation Report
This is the basic report referred to above which a Surveyor carries out for the Mortgage Lender's benefit and simply confirms whether the property will provide adequate security for the Lender.
- The Homebuyer Report
A more detailed report which gives details of all important aspects of a property, listing in conclusion any matters which particularly concern the Surveyor. The fee for this type of report will depend on the price being paid for the property. However, it is money well spent and gives the Buyer peace of mind when buying a home.
- The Building Survey
The most detailed and comprehensive type of report a Buyer can obtain for a property.
It is normal for a deposit to be paid on exchange of contracts. Although many people think 10% is required that is often untrue. If you are buying and selling we can usually negotiate to use the deposit which we receive on your sale in connection with your purchase so you will not have to find anything.
If you are buying and not selling the amount of the deposit will usually depend upon the size of your mortgage (if any). If it is less than 90% of the purchase price then you will need to provide 10% but if you have arranged a mortgage exceeding 90% of the value of the property we can usually negotiate with the seller's solicitor for you to pay the difference between the purchase price and net mortgage advance.
Please note however, that even if a deposit of less than 10% is accepted by your sellers solicitor, the sale contract will provide that the balance of the 10% deposit becomes immediately due upon the completion date. This means that if you fail to complete and walk away from the purchase, not only will you lose the deposit paid, but your seller can sue you for the balance of the 10% deposit which the seller was entitled to in law.
What searches do you carry out and why?
There are six main types of search which we undertake and we will decide which of these are necessary in any particular transaction :-
- Local Authority Search
This is essential and will reveal details of the planning history for the property, whether the Council is aware of any breaches of planning, also any proposals for new roads or traffic schemes, tree preservation orders, conservation areas and any other matters within the Council's control that may affect the property.
If you know of any extensions/alterations to the property since its original construction, whether internal or external, it is helpful if you advise us at the beginning of the transaction in order that we may raise the appropriate enquiries of the Local Authority so ensure that the relevant consents were obtained.
Please note that this search relates only to the property being purchased and not the area. If you have any concerns regarding developments within the vicinity of the property, it may be prudent for us to undertake a PlanSearch (see 6 below).
- Water and Drainage Search
This will confirm whether or not the surface and/or foul water drains run into a public or private sewer. It is often the case that the connection between the property and the publicly maintained sewer does not belong to the Local Authority and that it is privately owned/shared with the owners/users of that private connection accordingly. The search will also confirm whether the property is connected to the mains water supply.
- Land Registry Search
This search is undertaken immediately before completion in order to find out if there are new mortgages registered against the property which have not previously been disclosed. If there are then we will obviously require assurances from the sellers solicitor that these will be repaid.
- Bankruptcy Search
If you are funding the purchase by way of a mortgage we are required to carry out a search to make sure that are you are not bankrupt. Quite often this search will show an entry against a name similar to yours. If this is the case you will be asked to sign a copy of the result to certify that the entry does not relate to you.
- Environmental Search
It has more recently been recommended that we should also carry out an environmental search which provides:
- comprehensive details on the risks to the property from the past and present contamination or pollution.
- An assessment of the risks of subsidence and flooding
- Details of the presence of any nearby toxic or explosive substances
- Information on local industrial and mining activities
- Location details of waste landfill sites
If you would like us to undertake this search please advise us as soon as possible.
- Plan Search
It is possible for us to arrange for a Plan Search to be undertaken which will provide a synopsis of planning applications within a radius of approximately 250 metres from the property.
When do I need to arrange buildings insurance?
Unless the building insurance is being arranged by your lender or it is a leasehold property and the insurance is dealt with by the freeholder you must arrange buildings insurance from exchange of contracts as the sale agreement will normally place the property at your risk from that time.
The amount of cover should be the estimated cost of re-building the property if it burns to the ground which is not necessarily the same as the current market value. If you have a survey or you are obtaining a mortgage your surveyor or the lenders valuer will normally giv e the minimum amount of rebuild cover in the survey report.
What do we need to know if we are buying in joint names?
This is the form which most married couples adopt. It means that rather than holding a distinct share in the property the owners merely co-own the property and on the death of one part the property will automatically revert to the survivor. The property will not, in this instance, form part of the deceased's estate.
This is where each owner has a specific share in the property which, upon his or her death, will devolve either in accordance with the terms of his or her Will or intestacy rules. The size of the share held by each person can be agreed between the parties and need not necessary be a 50/50 split.
If you are putting unequal amounts into the property the person who is paying the larger amount can and often should be protected by a "trust deed" which sets out your respective shares so that in the event of any dispute or upon the death of one or other of you in the future your original intentions will be clearly recorded. Once you have considered the above options and/or if you require further advice you should tell your solicitor so that he or she can make sure that your wishes are carried out.
These are usually left with the estate agents (if any) and the buyer collects them once the money has been paid over on the day of completion. If there are no estate agents (or this is not convenient) then the seller can hand them direct to the buyer or alternative arrangements can be made.