{"id":2794,"date":"2017-11-22T17:19:59","date_gmt":"2017-11-22T17:19:59","guid":{"rendered":"https:\/\/rrpassociates.co.uk\/?p=2794"},"modified":"2018-01-04T16:42:33","modified_gmt":"2018-01-04T16:42:33","slug":"do-i-need-a-solicitor-to-buy-a-house","status":"publish","type":"post","link":"https:\/\/rrpassociates.co.uk\/residential-property\/do-i-need-a-solicitor-to-buy-a-house\/","title":{"rendered":"Do I need a solicitor to buy a house?"},"content":{"rendered":"

Here\u2019s what you need to know<\/h3>\n

For most people, buying a property is the single biggest investment they\u2019ll make in their lives. From young adults looking to lay down roots and start building a family, to those who\u2019ve worked hard for years to make the switch from renting to owning, purchasing a house is something most of us strive toward.<\/p>\n

It usually takes years of hard work to manoeuvre ourselves into a position where we can afford to buy our own home, so it\u2019s important to get it right.\u00a0 Things like survey fees, valuations and contract exchanges can seem extremely daunting, and it can be difficult for new buyers in particular to navigate the many nuances of a mortgage deal and other legal aspects of buying a house<\/a>.\u00a0 Sometimes these things can add additional \u2018hidden\u2019 costs to the whole process, leaving you struggling to stay on course.\u00a0 This guide should hopefully cut through the jargon and leave you with all the information needed to make a well-informed decision.<\/p>\n

Understanding the ins and outs of conveyancing can also be difficult, and each individual property can also come with its own legal regulations that must be adhered to.\u00a0 So what are the key things you need to understand before you commit to buying your new home?<\/p>\n

\"nice<\/p>\n

The potential hidden costs of buying a home<\/h2>\n

When you\u2019ve found the perfect property it might be tempting to dive right in, but it\u2019s worth familiarising yourself with the different fees you\u2019re likely to face throughout the process:<\/p>\n

Mortgage Valuation Fee<\/h3>\n

One of the first fees you\u2019ll be greeted with when applying for a mortgage is a valuation fee<\/strong>. Not to be confused with a survey fee which often comes next, a valuation fee is simply the lender\u2019s way of putting a value on the property you\u2019re looking to buy.\u00a0 Some mortgage lenders cover these costs, but it\u2019s far more likely to be passed onto you as part of your mortgage application.<\/p>\n

Survey Fee<\/h3>\n

Survey fees aren\u2019t required by law. In fact, only 20% of buyers get a professional survey before they purchase a new home[1]. However, a good survey carried out by a qualified surveyor is a great way to find out if there are any faults with the property that may lead you to renegotiate the price. For example, finding out that the property has \u00a310,000 worth of electrical repairs that need to be carried out might lead to you asking for \u00a310,000 off the asking price. This can potentially save you a lot of money in the long run, particularly if it\u2019s an older building. Ensuring your surveyor is registered with the Royal Institute of Chartered Surveyors (RICS) is a good start.<\/p>\n

Stamp Duty Land Tax<\/h3>\n

Stamp duty land tax sounds complicated, but really it\u2019s just the new term for stamp duty – a tax that\u2019s payable on all property purchases. For any property purchase of \u00a340,000 or more, a tax return must be completed by the buyer. Like most tax returns, SDLT comes with time limits and penalties for delays, so it\u2019s worth getting ahead of. Use this Government calculator<\/a> to see how much stamp duty you will need to pay.<\/p>\n

Update 22nd November 2017<\/strong>: Good news for First Time Buyers, there will be no SDLT to be paid for Properties up to \u00a3300,000, or up to \u00a3500,000 in the London area. If you are a first time buyer who is purchasing for more than \u00a3300,000 use the calculator (in the link above) to see what you are entitled to.<\/p>\n

Land Registry Fee<\/h3>\n

Registering your property with the land registry will usually be completed as part of your conveyancing (more on that soon). The land registry basically records who owns land and property throughout England and Wales. If you purchase a new home but fail to register as the new land\/property owner it can cause a lot of complications further down the line.\u00a0 Registration can cost anywhere from \u00a320 to \u00a31,000 depending on the value of the property and how you apply.<\/p>\n

Mortgage Lender Fees<\/h3>\n

This type of fee comes in all shapes and sizes depending on your circumstances. The most common is perhaps the mortgage arrangement fee<\/strong> which is charged by mortgage companies and can range from \u00a3100 to 1% of the mortgage. Another potential fee is the mortgage indemnity fee<\/strong>, which covers the insurance that lenders take out to protect themselves if you cannot pay the loan. This is mainly for specific cases where your loan is unusually high compared to the value of the property Estate agent fees<\/strong> are usually taken care of by the seller, so if you\u2019re faced with bills from either party do some investigating to make sure it\u2019s legitimate.\u00a0 Some lenders insist you pay fees up front, others add the cost to the mortgage; make sure you weigh up all options when choosing a lender to do what\u2019s best for your situation.<\/p>\n

Here\u2019s a quick tip<\/em><\/strong> \u2013 when you are looking for a mortgage through a broker, make sure they cover whole of the market. Some brokers only deal with a limited amount of mortgage lenders which can limit your options and chance of a great mortgage rate.<\/p>\n

Removal Expenses<\/h3>\n

This is something that can often be forgotten in the noise of applying for a mortgage. If you\u2019ve got some fit and able friends, you can, of course, do this for free, but more often than not a removal company is required to get all furniture moved safely and on time.\u00a0 The cost will depend on the size of your home to who you hire; a man in a van at a few hundred pounds might be all you need, but larger properties might need a professional removals company to provide a specialised truck which can easily run into thousands of pounds.<\/p>\n

These are the main costs home buyers often overlook when they begin proceedings, so if you\u2019re aware of them and expecting them you\u2019re already off to a good start. There are other small things to think about like VAT and taking care of final utility bills, but these are difficult to miss. Once the above steps are taken care of, and both buyer and seller are happy that everything is in order, contracts can then be exchanged. This is when things like moving dates and deadlines are agreed, and is often the biggest source of stress and frustration so it\u2019s important to ensure both parties are comfortable with the agreed dates.<\/p>\n

\"house<\/p>\n

What is conveyancing and why do you need it?<\/h2>\n

Conveyancing sounds complicated but it simply refers to the legal process of transferring ownership of a property from one party to another. Whether you\u2019re buying or selling, it\u2019s a good idea to get a conveyancer or conveyancing solicitor to handle the legalities. Conveyancing fees will be broken down and itemised by your solicitor, but they usually include things like carrying out money laundering checks and acquiring title deeds to the property. A conveyancer will also take care of registration to the land registry and keep you informed of any stamp duty land tax you\u2019ll need to pay as a buyer.<\/p>\n

Unless you are taking out a mortgage, it\u2019s possible to handle the conveyancing yourself, but if like most people you\u2019re short on time or have any reservations about the process, it\u2019s highly recommended that you hire somebody to take care of this for you. A good conveyancing service will handle everything, from the moment your offer on a house is made official, to the second you get the keys to your new home.\u00a0 But where do you start?<\/p>\n

Remember, it\u2019s up to you to find yourself a reputable and affordable conveyancer.\u00a0 You can take recommendations from people, but try to avoid simply going with whatever your estate agent recommends as they\u2019ll usually be on commission and more expensive as a result.\u00a0 Do some research online, and if possible look for online reviews and search in forums before committing to a conveyancer.\u00a0 If you can speak to somebody directly who has used a conveyancer you\u2019re considering, even better.\u00a0 These companies will often talk up their service, but there\u2019s no substitute for real, word of mouth experience from people who have been through what you\u2019re about to embark on.<\/p>\n

One the biggest advantages of using a conveyancer are what are known as property searches<\/strong>. There are things you may not be able to find out about a property by simply viewing it or looking it up on Google. A detailed property search will look at everything from flood risk to potential future developments.\u00a0 Moving in only to find that a motorway is about to run through your garden or the land nearby is contaminated can be a nasty shock. It can also severely impact the value of the property, regardless of what you paid for it.<\/p>\n

Getting started and getting on top of the various legal aspects<\/h2>\n

No two properties are the same when it comes to buying, selling and the process of conveyancing.\u00a0 Even experienced buyers can still get tripped up or face unexpected costs if they\u2019re dealing with a new property in a new area.\u00a0 Whether you\u2019re a first-time buyer, looking to remortgage, or even thinking about shared ownership or buy-to-let, you need someone on your side that can cover off all the legal aspects and make your investment a safe one.<\/p>\n

If you\u2019re buying a home for the first time, here\u2019s a step by step breakdown of what you need to do:<\/em><\/p>\n

    \n
  1. Work out how much you can afford<\/strong><\/li>\n
  2. Get a mortgage agreement in principle<\/strong><\/li>\n
  3. Choose your home<\/strong><\/li>\n
  4. Hire a solicitor<\/strong><\/li>\n
  5. Make an offer<\/strong><\/li>\n
  6. Have a survey and valuation done<\/strong><\/li>\n
  7. Do any necessary legal work<\/strong><\/li>\n
  8. Consider arranging life cover<\/strong><\/li>\n
  9. Finalise your mortgage<\/strong><\/li>\n
  10. Exchange contracts<\/strong><\/li>\n
  11. Organise your move<\/strong><\/li>\n
  12. Complete the purchase<\/strong><\/li>\n
  13. Move in!<\/strong><\/li>\n<\/ol>\n

    A reliable and trustworthy conveyancer will be able to help you with most of the steps above. If you\u2019re a new buyer, you want professional input and guidance throughout the entire process to make sure everything is taken care of.<\/p>\n

    If you\u2019re looking at re-mortgaging there\u2019s even more to think about.\u00a0 Usually, the sole purpose of re-mortgaging is to free up capital or reduce your monthly payments. It can be a complex process but when handled in the right way you could end up with a much better deal whilst also improving your financial situation dramatically.\u00a0 A conveyancer will be able to advise you on the best courses of action, and then take care of the legalities such as dealing with the title deeds.<\/p>\n

    Other avenues of buying a home like buy-to-let and shared ownership can seem simple on the surface, but these are often dependent on multiple parties agreeing and seeing things through. Having the benefit of a conveyancer in your corner to assess the legal aspects can give you the peace of mind you need to go ahead with the move and enjoy life in your new home.<\/p>\n

    Final thoughts<\/h2>\n

    In simple terms, the process of purchasing your own home – whether you take out a mortgage, shared ownership, buy-to-let or something different – is likely to be one of the most important financial processes of your life. The effects of getting something wrong or missing a minor detail can be far reaching and have long-lasting consequences, so it\u2019s important to get it right the first time.\u00a0 For this reason, it\u2019s always a good idea to enlist the help of a professional conveyancer who can take the stresses and strains away, leaving you to focus on what colour you\u2019re going to paint the kid\u2019s bedroom or where the sofa\u2019s going to go.<\/p>\n

    Of course, it\u2019s still a good idea to be aware of potential pitfalls and use a checklist of things that need to get done, but if you\u2019re working full-time or have children to look after (or both) it\u2019s almost impossible to stay on top of everything on your own. Look for support, ask around and hire a conveyancer to take care of the legal aspects – you\u2019ll be glad you did in the long run.<\/p>\n

    [1] \u00a0https:\/\/www.moneyadviceservice.org.uk\/en\/articles\/estimate-your-overall-buying-and-moving-costs<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    Here\u2019s what you need to know For most people, buying a property is the single biggest investment they\u2019ll make in their lives. From young adults looking to lay down roots and start building a family, to those who\u2019ve worked hard for years to make the switch from renting to owning, purchasing a house is something…<\/p>\n","protected":false},"author":2,"featured_media":1366,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2,44],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n