The DIGITAL properTy mAGAzIne
esmartproperty ISSUE 16
2010 Protection Insurance
Taking steps to protect yourself
against losing your home
Predictions for the
continue to rise
Latest figures show gains over
next 12 months the sixth consecutive month
Lenders offering better rates
Residential Positive rental
rental market sentiment
Opportunities for new and Surveyors expect to see rent
existing investors in 2010 rises during the New Year
remortgage. In this issue
05 Pre-Budget Report
Fundamental reform still needed, 10 Positive rental sentiment
Surveyors expect to see rent rises 21 Mortgage Payment Protection
Isn’t it time you talked to us another missed opportunity!
during the New Year Taking steps to protect yourself against
losing your home
Property prices continue to Stamp duty
about saving money?
Latest figures show gains over the
sixth consecutive month
Holiday helped approximately
240,000 homeowners 22 Independent deposit schemes
Cost-cutting measures could undermine
07 The key factors during 2009
A huge financial burden lifted from
13 Confident buyers returning
Acute shortage of homes for sale is
bolstering the market 22 Residential rental market
Opportunities for new and existing
We’re passionate about making sure you’ll obtain millions of home owners investors in 2010
the best mortgage deal available.
07 Holiday homes
Tax changes on the horizon
13 Energy efficient homes
Sustainable consumer-friendly green
rating 23 Property ownership
Buying a leasehold
Contact us to discuss your current situation, and
we’ll help you find the best deal that's right for you.
07 Seasonally adjusted two-
House prices rose at their fastest pace
15 Buying a home
The legal aspects of becoming the
owner of your property
24 Having problems paying your
Seeking help sooner rather than later is
in three years the key
08 Rural resilience
Imbalance between supply and
Lenders offering better rates
Investing in the private rented sector
demand pushing prices upwards
19 Landlords air their
28 A to Z property and mortgage
09 2010 housing market
Predictions for the next 12 months
Survey reports dislike over adverse
Assisting you to buy property, sell
property and finance your mortgage
09 Homeowners breathe a sigh
Home across the nation increased in
19 New plans for borrowers
Stricter scrutiny of mortgage
applications 30 Strong interest from buyers
Demand is still outstripping supply
Your property may be repossessed if you do not keep up repayments on your mortgage.
Pre-Budget Property prices
continue to rise
In this Report Latest figures show gains over
the sixth consecutive month
issue Fundamental reform still needed, another
House prices rose again during November last year,
taking the average house price in the UK to almost
the same level as they were a year ago. Prices gained
Welcome to the first edition of our 0.9 per cent according to the latest government
property and mortgage magazine for Following the Pre-Budget Report in December, the Council of figures, which is the sixth consecutive month that
the new decade. Inside you’ll find a mix Mortgage Lenders (CML) welcomed the announcement by the Land Registry figures have reported an increase.
of news articles and features including Chancellor, Alistair Darling that help with mortgage payments for
predictions for the UK property market Other house price indices have been showing rises
over the next 12 months.
working-age borrowers on income support will be maintained at for longer than that, but the Land Registry measure is
current levels for the next six months. regarded as being the last to reflect changes in prices
House prices rose again during November as it is based on sale completions.
last year, taking the average house price Payments of income support are helping Commenting on the Pre-Budget Report, the
in the UK to almost the same level as around 100,000 households stay in their CML's director general Michael Coogan said: The November rise of 0.9 per cent was higher than
they were a year ago. On page 05 find homes, and a further 113,000 older the 0.6 per cent rise in October, and the same as the
out more about the latest government home-owners are receiving help with their "Lenders are determined that possession figure for September.
figures, the sixth consecutive month that mortgage through pension credits. is a last resort. With earlier and better
Land Registry figures have reported an communication between lenders, consumers The average house price in england and Wales is now
increase. The CML were disappointed that the and debt advisers, arrears are being managed £161,554, according to the Land Registry.
stamp duty "holiday" ceased at the end through the recession and possession action
Many homeowners may be in their of December and commented that it was minimised, wherever possible. The rise means that, averaged across the UK, house
strongest position to remortgage in more another missed opportunity and that more prices now stand just 0.3 per cent lower than they did
than two years thanks to a recovery in fundamental reform of this tax, which "However, a state safety net is also a vital a year ago.
property prices. There's been a recovery continues to distort the housing market, part of the picture, and so we welcome the
in property prices since April last year is still needed. With a lower number of Pre-Budget Report announcement of no Prices have recovered most strongly in London,
which has left homeowners in a stronger housing transactions expected this year, it change to the rate of support for mortgage where property is now 3.5 per cent more valuable
position. On page 16 find out why now would have been possible for the Treasury interest at 6.08 per cent. In a low-interest rate than a year ago following a 2 per cent rise in
may be the best time to remortgage in to consider the introduction of revenue- environment, and with so much progress November.
more than two years. neutral reform that would have removed being made by lenders and borrowers
market distortion. together, it is no surprise that the back-stop There were also inconsistencies in the types of
With 2009 a distant memory, British government schemes have not been widely properties that are selling for higher prices. The
homeowners can breathe a sigh of The CML also notes the government's used. This situation may change if pressures biggest increases have been for detached family
relief as home values across the nation intention to explore ways of encouraging build, as interest rates rise in the future. So we homes, which are in the greatest demand. Prices of
increased by £39.1 billion. Whilst the more sustainable, transparent and are committed to continuing to work with these properties were 1.6 per cent higher last month
increase is modest, it is a massive standardised markets for UK mortgage- the government to ensure the best possible than in November last year.
improvement over 2008 when British backed securities, and looks forward to outcomes for borrowers going through
property values fell £811.3 billion. Turn to seeing more details. short-term financial difficulties." However, semi-detached houses fell in value by 0.1per
page 9 to read more. cent, while terraced homes were 0.3 per cent cheaper.
At the time of publishing, the property NEEd MoRE Property transactions also picked up, with sales
and mortgage market and economic
events are changing very rapidly and
INfoRMATIoN? more than 5,000 higher per month between June
and September than in the same period a year
some further changes are likely to have PLeASe CONTACT uS ago. But transactions are historically still at a low
occurred by the time you read this WITH YOuR eNQuIRY. level. Price drops in many regions of the UK and in
edition. A full content listing appears on particular London and the South east are easing, and
pages 3. in some parts of London even increasing as demand
overtakes supply - particularly in the premium,
higher end of the market.
The most promising part of the report is the number
of homes being sold, which although still up to
half their pre-credit crunch levels, are beginning to
Content of the articles featured in this publication is for your general information and use only and is not intended to
address your particular requirements or constitute a full and authoritative statement of the law. They should not be relied
upon in their entirety and shall not be deemed to be, or constitute advice. Although endeavours have been made to
To dISCUSS YoUR provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is
REqUIREMENTS oR received or that it will continue to be accurate in the future. No individual or company should act upon such information
without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot
To oBTAIN fURTHER accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. The Financial Services
INfoRMATIoN Authority (FSA) does not regulate most Buy-to-Let or Commercial Mortgages.
PLeASe CONTACT uS. YOUR PROPeRTY MAY Be RePOSSeSSeD IF YOU DO NOT KeeP UP RePAYMeNTS ON YOUR MORTgAge.
Tax changes on the horizon
Families who rent out a holiday home in the UK will no
longer be able to offset the costs against their tax bill.
Rules to be introduced in April this year will stop second
home owners from being able to write-off their mortgage
interest and other running and maintenance expenses as a
business loss. They also will not qualify for capital gains tax
relief, stopping people from buying holiday homes with
the proceeds of previous sales.
The key factors
The old rules not only allowed those who owned
holiday lets to pay no tax if the rental income did not
cover their costs, they could also use their losses to
reduce the amount they pay the government on the
rest of their income.
From April this year, second homes will be treated
as property businesses, such as buy-to-lets run by
professional landlords. This means they will be subject to
a different tax regime, though they will qualify for benefits
A huge financial burden lifted from such as energy savings allowances and a 10 per cent
deduction for wear and tear on furnishings.
millions of home owners However, because of european rules introduced earlier
this year those with holiday homes overseas will be able to
For close observers of the uK's property market, 2009 was claim the old tax breaks.
a big surprise. Contrary to almost everyone's expectations,
prices started rising in the spring and kept on going pretty
much every month.
According to HM Revenue & Customs
(HMRC) completed sales rose steadily too,
would otherwise have fallen behind with
their mortgage payments and then been Seasonally
from the rock-bottom level of just 41,000 threatened with repossession.
in January to 90,000 in October 2009.
ed Stansfield of Capital economics
The sudden change in direction brought highlights other factors.
an end to the sharp downturn of the
previous 18 months, in which the banking "The big influence was the relative
crisis led to a slump of about 20 per cent in resilience of labour markets, employment
the value of the average UK home. has been slow to fall, so there has been no House prices rose at their
Simon Rubinsohn, chief economist at the
drip-feed of forced sellers," he says.
fastest pace in three years
Royal Institution of Chartered Surveyors A year ago the Council of Mortgage
House prices in england and Wales rose at their fastest
(RICS), has been equally surprised by this lenders (CML) decided not to make a
pace in three years in November 2009, but there are signs
about-turn. public forecast of house prices for 2009.
that activity may be levelling off just as new instructions to
Its spokesman Bernard Clarke thinks
sell hit a two-year high, according to a survey by the Royal
"Prices could have fallen further, but that decision, repeated this year, is fully
Institution of Chartered Surveyors (RICS).
government policy has been successful, justified.
combined with low interest rates," he says.
Seasonally adjusted net balance of surveyors reported
"It's a vindication of our decision not to
rising prices was 35 per cent last during November,
"The rise in unemployment has been only forecast in such a volatile market," he said.
up from 34 percent in October and the highest since
half the level seen in the recession of the
early 1990s, which has stopped some "No-one forecast the rise this year and
distressed stock coming on the market." it is difficult with such a thin volume of
House prices have started rising again in annual terms in
transaction to do something that is reliable."
recent months, having slumped around 20 per cent from
The key factor was probably the Bank of
their peak during the financial crisis. However, prices have
england's decision to take its base rate all
largely been supported by a lack of supply.
the way down to 0.5 per cent by March 2009,
in an attempt to stave off the recession and NEEd MoRE
keep the banking system afloat. INfoRMATIoN? The RICS survey showed that, for now, demand continued
to outpace supply, with the sales-to-stock ratio rising to 31
PLeASe CONTACT uS from 30 in October, a two-year high.
This lifted a huge financial burden from WITH YOuR eNQuIRY.
millions of home owners, some of whom
sigh of relief
Home values across the
nation increased in 2009
2010 housing market
With 2009 a distant memory, British homeowners can
breathe a sigh of relief compared to the same period last
year as home values across the nation increased by £39.1
billion last year. Whilst the increase is modest, it is a massive
Predictions for the next 12 months improvement over 2008 when British property values fell
£811.3 billion, according to property website Zoopla.
The National Association of estate Agents is a mistake and this has the potential to
(NAeA) has provided their predictions reverberate around the market. n Average British home value up £1,517 in 2009, after
for the UK property market over the next dropping £31,355 in 2008
12 months, predicting a market hugely “We also have an increase in VAT and an n Average property value up £4 per day in 2009, after
dependent on how much lending will be imminent general election. This means losing £86 per day in 2008
made available. that some people will adopt a wait and n england & Scotland property values rise but Wales
see attitude to housing as they study continues decline in 2009
According to NAeA house prices could what tax changes will mean for them and n Biggest rebound in gloucestershire, up 3.8 per cent this
remain flat, or, in some markets possibly how the election is likely to play out. year after 14.1 per cent drop in 2008
drop slightly, for the first six months
of 2010, before picking up again and “In recent months the market has However, with the total value of the British residential
remaining stable in the second half of witnessed a slight increase in housing housing stock now standing at £5.3 trillion, up marginally
the year. Supply will remain stable in prices, driven largely by the fact that, in on one year ago, it still remains over three quarters of a
the run up to the general election, after some markets, demand is outstripping trillion pounds below its peak of £6.1 trillion in late 2007.
which there are likely to be more houses supply. If more property comes onto the The average home in Britain is now worth £205,591, up
available for sale, particularly if Home market the house price rise will flatten or, £1,517 (0.7 per cent) from one year ago, a daily gain of £4
Information Packs are scrapped. in some cases might fall slightly over the for the average property. This is in stark contrast to 2008
Imbalance between supply and demand pushing prices upwards first six months of the year. when property values fell by £31,355 (13.3 per cent) on
The general election would cause a lull in average, equivalent to a daily loss of £86 per home.
activity as people adopt a “wait and see” “During 2009 there was a pick up in
For the first time since autumn Property prices in the Home continue and will prices fall again in
Results released by 2007 every UK region covered by Counties have shown particular 2010. Currently, there are few signs
approach. demand as many took advantage of Property prices in england have climbed 0.9 per cent over
lower prices and interest rates. This the past 12 months, having fallen 13.9 per cent in 2008.
the Knight Frank the index reported a quarterly resilience, ending 2009 1.4 per cent that stock levels of the best houses
clearly indicates that the British public Scottish values have also risen in 2009 by 0.6 per cent to
Prime Country price increase. The Home Counties higher. The north of england and will increase markedly this year and During 2009 there still believes that investing in bricks and an average of £156,905 up from £155,597 at the end of
continue to lead the country house Scotland are recovering more slowly the forthcoming general election
House Index during market with Q4 growth of 3.1 per with prices down 11 per cent on an could exacerbate the situation
was a pick up in mortar is the right thing to do. last year. However, the property market in Wales is yet to
rebound and has seen average values drop a further 2.5%
December showed cent and annual growth of annual basis, but up 0.5 per cent in further. Coupled with the growing demand as many took “There have been encouraging levels of (£3,866) in 2009 on top of the 13.2 per cent decline in 2008.
1.4 per cent. A significant imbalance the last three months of the year. number of frustrated buyers looking
that house prices between supply and demand is for houses, this should help to
advantage of lower prices first time buyers throughout 2009 and
I would hope this continues into 2010. Homeowners in gloucestershire have had the biggest
rose on average by helping to push prices upwards. There are a number of reasons for ensure prices do not fall back. The and interest rates. Again, the situation with lending will cause for celebration in 2009 as average property values
this upturn in property prices, but most likely scenario is a levelling off
have an impact. The NAeA believes that have risen 3.8 per cent over the past year to a current
almost 2.3 per cent According to Knight Frank the price the overriding factor is an imbalance sometime in mid 2010.
responsible lending to responsible people average home value of £229,945.
of prime country properties in now between supply and demand. A number of buyers may continue to take
in the fourth quarter increasing across the country as Potential purchasers are more advantage of lower interest rates and
is crucial to any recovery.”
Commenting Zoopla said, “2008 was undoubtedly
of the year and are the recovery that started in London confident because they feel prices lower priced property.
the annus horribilis for homeowners. But, property
during spring 2009 continues to have reached the bottom and are no
now just 2.6 per cent spread further into the regions. longer worried about buying into a The continued presence of First Time
prices stabilised during 2009, rising gradually since
lower than at the falling market. The cost of borrowing NEEd MoRE Buyers will be critical to market success.
April after a fairly weak first quarter and the housing
beginning of 2009. Overall, prices rose by 2.3 per cent remains low and credit availability is INfoRMATIoN? Peter Bolton King, chief executive of the NEEd MoRE market did not worsen in 2009 as some had feared
and recovery signs are starting to take hold. With the
in the final quarter of the year gradually improving. PLeASe CONTACT NAeA, said: “The beginning of 2010 sees INfoRMATIoN? biggest share of the UK's household wealth, 39 per
and, on average, are just 2.6 per several things happen. The stamp duty
uS WITH YOuR PLeASe CONTACT uS cent in property, it is far better news for homeowners
cent lower than they were at the The question everybody is now holiday ending, despite warnings from
beginning of 2009. asking is how long the recovery can
eNQuIRY. much of the property industry that this WITH YOuR eNQuIRY. than at the start of last year."
Renting Stamp duty
Holiday helped approximately 240,000 homeowners
The controversial stamp The system has reverted to duty of proved such a good earner for n In 1991, during the last housing
1 per cent being paid on homes sold the government that it was never recession, the Conservative
duty holiday brought in for more than £125,000. Higher rates repealed. government temporarily
during 2008 for homes apply above £250,000. n The tax was extended to property suspended stamp duty for nine
sales in 1808. months on all properties worth
costing up to £175,000 The scheme was been widely n In 1765, the attempted less than £250,000 in an effort to
ended at the end of criticised for failing to assist enforcement of stamp duty in boost sales.
first-time buyers. The holiday was english colonies in America led n During the housing boom of
December last year. This initially meant to run for a year from to protestor’s demands of “no the late 1990s early 2000s, when
was confirmed during the September 2008 but was extended taxation without representation” many more houses became
in the full 2009 Budget last year to – and ultimately to the Boston liable for stamp duty, gordon
Pre-Budget Report when remain in place until 31 December. Tea Party and the outbreak of the Brown came under increasing
the Chancellor, Alistair American War of Independence. pressure to adjust the thresholds
Campaigners such as the Council n In 1797, William Pitt the Younger accordingly. In 2000/01, the Inland
Darling announced that of Mortgage Lenders (CML) want described stamp duty as "easily Revenue received £2.145 billion
the holiday had helped further reform to the controversial raised, pressing little on any from residential stamp duty; in
tax. The CML says that stamp duty particular class, especially the 2002/03, it received £3.59 billion.
approximately 240,000 unfairly constrains first-time buyers, lower orders of society, and n In his 2005 Budget, Brown finally
homeowners. places a greater burden on the south producing a revenue safely and increased the zero rate stamp
of england and encourages “price expeditiously collected at small duty threshold from £60,000 to
bunching” just below the thresholds. expense." He virtually doubled the £120,000, and increased it slightly
It favours a graduated structure that tax that year. again in 2006 to £125,000.
only charges higher rates of duty on n In 1984 the Tory Chancellor
the proportion of the property value Nigel Lawson eased the
above the threshold. pressure on homebuyers
Did you know?
by increasing the threshold
for stamp duty on property
Positive rental sentiment
from £25,000 to £30,000 and
n Stamp duty was first levied in
the UK in 1694 to pay for the war
reduced the highest rate of PLeASe CONTACT
with France. Although initially
stamp duty from 2 per cent to uS WITH YOuR
1 per cent. eNQuIRY.
only planned for four years, it
Surveyors expect to see rent rises during the New Year
Results from the Royal The recent pick up in the housing when the housing market was still strong with 22 per cent more
market seems to have led to a suffering from falling prices and surveyors reporting rising rather
Institution of Chartered drop off in the number of rental many would-be sellers were turning than falling numbers of people
Surveyors (RICS) residential properties, particularly houses, to the lettings market when their looking to rent. Tenant demand was
being made available and as a houses failed to sell. strongest in London, but increased in
lettings survey for October result surveyor optimism has most other parts of the country bar
(3rd quarter) 2009, show increased for the first time since Currently the reading for past rents, the east.
July 2008. 22 per cent more although still negative, is the least
that surveyors expect to see surveyors expect rents to rise rather so since July 2008 with only 4 per
rent rises during this New than fall in the next three months. cent of Chartered Surveyors still
reporting falling rather than rising
Year as the number of rental The drop off in supply is the rents, indicating that the downward
properties coming onto the main driver for the more positive pressure on rents is already starting
sentiment, with new instructions to ease. Significantly London and the
market fell for the first time reaching their lowest levels in the North are already seeing the majority
since January 2008. surveys history (1998). A net balance of surveyors reporting price rises
of 11 per cent of surveyors, have
seen the number of new instructions
over the past three months.
coming onto the market falling Demand for rental property is INfoRMATIoN?
rather than rising. still rising as 16 per cent more PLeASe CONTACT
surveyors saw activity over the past uS WITH YOuR
This is in stark contrast to levels three months pick up; in particular eNQuIRY.
seen during the latter part of 2008 demand for houses was particularly
Assessing your buyers returning
The Communities & Local government Housing and
Planning Minister John Healey launched in December
proposals for a more consumer-friendly green rating for
new homes that will help green-proof properties and
reduce future utility bills by up to nearly £1500 a year in the
most energy efficient homes.
Acute shortage of homes for sale is The Code for Sustainable Homes was introduced in April
bolstering the market 2007 as a standard to improve the overall sustainability of
new homes. 'The Code' scores against a star rating system,
using one to six stars depending on how the property
Are you looking for the best
The market experienced a dramatic performs against categories such as energy use, waste,
Green shoots, reasons to be
improvement in fortunes during 2009. The materials and water.
cheerful during 2010
most impressive bounce back has been
seen on the Nationwide index, which now Mr Healey has pledged to improve the Code so that
n Confident buyers are returning to the
has prices up by 2.7 per cent annually. it's easier for consumers, whether they are developers
market and have pushed property
or individuals simply wanting to grade and track the
prices up by 2.7 per cent annually, says
The market seems to have been at its sustainability of their properties.
most buoyant during last summer and
n An acute shortage of homes for sale is
early autumn, with asking prices and The Code is rated from one to six, one being the entry
bolstering the market, says the Royal
leaping at that point. The big question level, above the level of the standard, mandatory Building
Institution of Chartered Surveyors. Its
now is can this momentum continue. Regulations and six as highest, reflecting exemplar
surveyors say prices will continue rising
If you’re unsure about how to navigate the mortgage The Bank of england's this year.
sustainable development. In the first two years, over
300,000 have been registered to build to Code standards,
n Nationwide has recorded seven
market during these challenging economic times, let us quantitative easing consecutive monthly increases to
and nearly 2,000 homes have completed Code certificates.
help you – don’t leave it to chance. programme, pumping in the November.
n Libor, the rate at which banks lend
The improved star rating system will also take into account
region of £200bn of printed to each other, has fallen to within a
the tougher new rules for energy efficiency in the building
regulations, coming into force from 2010 and the longer
money into the economy, normal range of the base rate
Contact us to discuss your requirements, and we’ll may also have created
- it stood at 0.6075 per cent on
7 December 2009.
term proposals for energy efficiency standards in zero
carbon homes. The Code will reflect these mandatory
help you make a well informed decision. demand. n Quantitative easing has pumped an
requirements giving people the opportunity to build to
tomorrow's standards today and save more on bills.
extra £200bn into the economy, which
should increase lending, keep Libor low
Prices were up for the seventh month in John Healey, said: "Our homes account for a quarter of UK
and add inflationary pressure, which
a row in November 2009, according to carbon emissions, so it's clear they are a vital part of our
may eventually drive up house prices.
Nationwide. efforts to tackle climate change. The talks in Copenhagen
have underlined the need for us to act now, so we need to
The Bank of england's quantitative easing ensure that people who want to greenproof their homes
programme, pumping in the region get a helping hand, not red tape. The Code has proved its
of £200bn of printed money into the
economy, may also have created demand.
NEEd MoRE worth but now is the time to make it a more user-friendly
standard for consumers. In the future, this will help drive
If prices manage to sustain their run in INfoRMATIoN? uptake so people will save more money on bills and
popular areas, we could soon be back at PLeASe CONTACT uS reduce the carbon footprint of new homes."
unaffordable levels. WITH YOuR eNQuIRY.
Buying a home
The legal aspects of becoming the owner of your property
Conveyancing is the legal process that must be followed to transfer the ownership Otherwise, there is a risk you might
be legally committed to buy but
of the property from the seller to you. The legal aspects of buying a home can not have access to the money you
be complicated. Most home-buyers appoint a solicitor or a licensed conveyancer need to do so. If you complete your
purchase before your sale then you
to do the legal work involved in buying a property. That person, known as the will face a shortfall and may need a
conveyancer, will be your legal adviser and will act for you. "bridging loan".
You need to appoint a solicitor n Make sure the seller has all planning a property, but it may be useful if You become the legal owner of
or licensed conveyancer as soon permission and completion problems are identified during the the property on an agreed date
as possible after your offer is certificates for any alterations or conveyancing process. (known as the "completion" date)
accepted so that: extensions to the property. after exchange of contracts. This is
n Check that there are no local If your conveyancer is also acting when the price you are paying for
n You can give your lender the developments (for example, for your lender, your lender may the property is transferred from
solicitor’s or conveyancer’s road-widening schemes) instruct the conveyancer to your mortgage lender to the seller.
details. planned which might affect the prepare the mortgage deed. This The conveyancer is responsible
n Your conveyancer can make value of the property. is the legal contract between you for checking that the funds have
contact with the seller's n Check that the street, pavement and the lender. Your conveyancer been received before allowing the
conveyancer and begin work on and main drains are public and will explain the terms of the keys to be released to the new
drafting the contract that will maintained by the local authority. mortgage deed to you, and then owner. Often, in practice, it will be
form the basis of the selling/ n Negotiate and agree (with the have them signed by you and the seller or the estate agent who
buying agreement. seller’s conveyancer) the draft the lender. hands over the keys.
n The solicitor or conveyancer can of the contract setting out the
check over any valuation reports terms on which you are buying. Once the conveyancing work has
and offers of advance. n Register or record the change been completed, you and the
of title to the property, and seller need to sign the contract
A lot of legal work involved in buying the mortgage deed (loan your conveyancers have agreed
a home doesn’t need to involve you agreement) in favour of the that sets out the terms of the
directly, but it is useful to understand lender, with the Land Registry. sale. The conveyancers will then
what needs to be done in case you exchange contracts and at this
need to check up on progress. Obtaining all the necessary point both you and the seller are
information can be time- legally committed to the deal. At
Your conveyancer will do the consuming. Your conveyancer will this point, you will need to pay
following: request "searches" of information a deposit of about 10 per cent
that could affect your property of the purchase price. Also, you
n Obtain the title deeds from the relevant local authority become responsible for putting
(documents giving evidence and sometimes other agencies. right any loss of or damage to
of ownership) of the property
from the seller’s conveyancer
Sometimes these can be obtained
quickly and electronically, but
the property (unless the contract
says otherwise). Your conveyancer
and examine them to make sure sometimes they can be slower and will advise on how and when this INfoRMATIoN?
there are no problems. this may cause delay. should be arranged and be put Please email or contact us
n Make sure that you will get It may be possible to use title insurance into effect. with your enquiry. If you
proper ownership of (title to) as a way to streamline some of the
would like us to email a
the property. conveyancing. Title insurance can If you are depending on the sale
n Make sure that there are sometimes be used to complement of an existing property to buy the
copy of our digital property
no planning conditions or or replace some elements of the legal new one, you need to make sure magazine to someone you
particularly harsh conditions work by insuring against the risk of that you exchange contracts for know, please email us with
of ownership (for example an problems arising in the future. It is both properties at the same time, their details and we’ll send
intrusive right of way) affecting more commonly used on remortgage and agree the same completion them a copy.
the property. cases than on mortgages to buy date for both properties.