It’s your move . . .

INTRODUCTION

For most people, buying their home is the biggest purchase that they will make. Too often happening at a time when there are plenty of other things to cause stress! So naturally you want your purchase to go as smoothly as possible. This is where we come in…

WHAT YOU CAN EXPECT FROM US -

Agreeing the terms and conditions of the deal are now more complex than ever. If something goes wrong, it could cost you a lot of money, or even your house, so it is important that you get sound legal advice before you commit yourself.

Conveyancing is the legal side of a house sale or purchase.

BUDGETING FOR YOUR NEW PROPERTY -

Do not take on more than you can manage. Make sure your monthly repayments can be met. Calculate your other financial outlays and make sure you have enough money left to cover your mortgage.  

DEPOSIT -

Most lenders will want you to put down a percentage deposit on your new property. Even if you get a 100% loan, it will only be 100% of the purchase price, or the valuation, whichever is the lower. So, if you offer more than the valuation you must remember to budget for the difference over valuation, plus any percentage deposit required by your lender and any Mortgage Indemnity Premium, paid to your lender .

LEGAL FEES AND OUTLAYS -

We can provide you with a free estimate including:

VAT (Charged at the current rate of 17.5%)

STAMP DUTY

A Government tax payable to the Inland Revenue at 1% if the purchase price is more than £125,000. The rate goes straight to 3% on the WHOLE purchase price, if the purchase price is more than £250,000, 4% over £500,000 and is a whopping 5% if the purchase price is more than £1,000,000. Stamp Duty is usually the most expensive part of buying a property (after the purchase price, of course!)

RECORDING DUES

Official charges for recording your ownership of the property and any mortgages you have over it.

OTHER POSSIBLE OUTLAYS

You may have to budget for some of these - check with us and your lender.

VALUATION / SURVEY

Your lender will insist on one - a basic 'scheme one valuation' will cost around £300, depending upon the value of your property.  You may want more protection from a 'scheme two' also known as a Housebuyers report.  The Rolls Royce type of survey is the 'scheme three' or full structural. We can advise you on the options available, the costs involved and can instruct a survey on your behalf. We will then discuss the survey with you before an offer is made.

MORTGAGE ARRANGEMENT FEE

Some lenders charge this fee especially where a 'special deal' is being offered. Some lenders allow you to add this on to the loan.

MORTGAGE GUARANTEE PREMIUM (MGP)

Is often charged by your lender if more than 75% of the property value is being borrowed. This insurance policy is to give the lender additional security so that if a property has to be repossessed and is sold for less than the outstanding loan, the lender can then obtain payment of any deficit from the policy proceeds. Some lenders allow you to add this on to the loan.

SEARCH FEE

Usually you pay for this only if you are buying from a large builder.

REMEMBER!

buying a new-build home may cost more in outlays than a second hand one.

BUYING A PROPERTY

We will outline the whole procedure from start to finish. Starting a long time before you make the offer, not finishing until you get the keys. During your first meeting we will also discuss all the financial aspects of the transaction, from the price range you are interested in, the expenses you will have to meet, and of course, our fees.

WARNING ! !

NOT READING THIS MAY SERIOUSLY DAMAGE YOUR WEALTH ! !

If you buy before you sell be prepared to take out a bridging loan. (There will always be an arrangement fee and repayments may be high.) If you sell before you buy be prepared to check into a hotel (or squat on a friend’s floor.) So consider, buying or selling first, each has its risks. Ending up with two properties and a bridging loan, or no property. But do not let this put you off, it is a common hurdle which need not be detrimental to your health.

It’s your choice…

NOTING INTEREST

House hunting may prove to be headache, so take advantage of our local knowledge, it may save you a lot of wasted effort. When you see something you like, ask us to note interest for you with the selling agents. A note of interest does NOT oblige you to buy, so you are not committing yourself in any way. All it means is that you are interested in the property and wish to be kept informed of developments, such as the fixing of a closing date and how many other parties are interested in the same property.

NEGOTIATING A DEAL

These days, not all properties go to a 'closing date' - if there are no other notes of interest, or if it is a fixed price property, we may be able to negotiate a deal for you, even before you have a survey done.  Of course, if a seller agrees to a deal, they will expect you to have a survey done, usually within a day.

THE LOAN

We can explain to you the special conditions of your mortgage or loan. .As you are aware there are hundreds of mortgage products available in the current market, so we recommend you use an independent financial adviser - see our ‘Links’ page.

ALTERATIONS AND EXTENSIONS

May cause problems. If you are aware from the survey report or your own observations that the property has been altered or extended, inform us. We will need to check whether planning permission, superior’s consent and/or a building warrant were required and, if so, whether they were obtained and whether a Completion Certificate was issued when the work was finished. This may be very important when it comes to you selling on the property.

MAKING THE OFFER

If you take the plunge, we will advise you on the terms of your offer. Offers are long and complex legal documents designed to protect you against the pitfalls of buying your property and it is vital to get them right first time. A solicitor’s experience is vital here! This is the crucial part, as acceptance of your offer creates a legally binding contract.

ACCEPTANCE OF YOUR OFFER

If your offer is accepted, the seller’s solicitor will send us a formal acceptance, which will include conditions which will attempt to modify the conditions in your offer. These conditions by the seller are described as the "qualified acceptance". You will then discuss the qualifications with us, and decide on which qualifications you are going to accept and those you are not. Further formal letters may then be exchanged to be agreed by both sides and, subject to these modifications, your offer is finally accepted.

'CONCLUDING THE BARGAIN' - 'MISSIVES' - CONTRACT

The offer, acceptance and subsequent letters, which are described as "formal" because they are intended to be part of a legal contract, are known as "missives". When one party accepts all the other party’s qualifications, it is said that "missives are concluded", which means that you and the seller have entered into a legally binding contract. You will be consulted and advised at each stage of this process.

INVESTIGATION OF TITLE

During these investigations, and in preparation for completing the transaction, we will investigate numerous matters concerning the property and its title. Much of this is done by requiring the seller to make disclosures of the relevant information and to produce the necessary documents in support.

THE TITLE

We must carry out a thorough examination of the title deeds to ensure the seller is genuinely the owner of the property, and that their right to sell the property is not restricted in any way. Title deeds also describe the precise extent of the property. You may have to confirm to your solicitor that the property described in the title deeds is precisely what you think you are buying. Examination of the title should also reveal whether there are conditions relating to the property about which you should be aware, e.g. restrictions on business use, or a contribution cost to the maintenance of common ground. We will advise you and discuss any unusual conditions.

LOCAL AUTHORITY MATTERS

You will want to know whether the roads and sewers are public or private, if there are any planning proposals which may affect the property, and whether the local authority has made any statutory orders or notices affecting the property. We will check all these items.

THE 'STANDARD SECURITY' - MORTGAGE DOCUMENT

Lenders will usually instruct us to carry out their legal work as well, saving you time and money. The Standard Security (mortgage) is a separate legal transaction in which we, acting on the lender’s behalf as well as your own, must have the same regard to the lender’s interests as to yours. The lender will issue usually lengthy, detailed instructions to us in connection with the loan, involving a substantial amount of work. The lender requires you to cover these costs which are included in the solicitor’s fee.

TITLE DEEDS

There will be various documents for you to sign in connection with the transaction, the Standard Security being the most important, as the deed which secures the loan over your new property.

PREPARING FOR SETTLEMENT

As the date for settlement of the purchase approaches we must draw together all the strands of the transaction, we must ensure that there are no outstanding queries about the property or title, that all the required documents have been obtained, and if necessary, signed and that your funds (the balance of the purchase price, stamp duty, fees and outlays) and the mortgage funds are in our hands. You will have explained to you what will actually happen on the date of settlement and how you will obtain the keys.

THE DATE OF ENTRY - PURCHASE DATE

We must ensure that the purchase price is in the seller’s solicitor’s hands on the agreed date of entry. In exchange you are entitled to get the keys and your lender receives the title deeds.

TAKING ENTRY

We will have advised you on the steps you should take immediately on taking entry, to check that the property is in the same order as when you saw it, that any extras which you are buying are present, and that items such as the central heating are in working order (if that is what the missives provide). Your solicitor will also explain what has to be done if you discover any problems in this connection and what legal remedies, if any, you have.

AFTER SETTLEMENT

After concluding the transaction we will report to you detailing any matters that remain to be dealt with and in particular any financial matters which are still outstanding. We will also report to your lender and will also check that all the documentation is in order before sending the title deeds for recording in the Registers of Scotland, being the final step to complete your ownership of the property. Eventually when the recording or registration process is complete, we will again check the documentation before sending it to your lender for safe keeping.

IT’S YOUR MOVE . . .

GOOD LUCK!