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Property Magazine

  1. 1. The DIGITAL properTy mAGAzIne esmartproperty ISSUE 16 Mortgage Payment 2010 Protection Insurance housing Taking steps to protect yourself against losing your home Property prices market Predictions for the continue to rise Latest figures show gains over next 12 months the sixth consecutive month Remortgaging 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
  2. 2. 05 06 16 10 Planning your 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 Insurance Isn’t it time you talked to us another missed opportunity! 11 during the New Year Taking steps to protect yourself against losing your home 05 Property prices continue to Stamp duty about saving money? rise Latest figures show gains over the sixth consecutive month Holiday helped approximately 240,000 homeowners 22 Independent deposit schemes Cost-cutting measures could undermine process 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- year high 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 mortgage? Seeking help sooner rather than later is in three years the key 08 Rural resilience Imbalance between supply and 17 Remortgaging Lenders offering better rates 26 Buy-to-let Investing in the private rented sector demand pushing prices upwards 19 Landlords air their grievances 28 A to Z property and mortgage 09 2010 housing market Predictions for the next 12 months Survey reports dislike over adverse burdensome legislation terms Assisting you to buy property, sell property and finance your mortgage 09 Homeowners breathe a sigh of relief 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 2009 Your property may be repossessed if you do not keep up repayments on your mortgage. 03
  3. 3. 14 News 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 missed opportunity! 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 09 22 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 19 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 13 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 07 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 increase again. 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. 04 05
  4. 4. News Holiday homes 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 during 2009 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 adjusted 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 two-year high 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 November 2006. 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 06 07
  5. 5. News News Homeowners breathe a 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 Rural resilience 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." 08 09
  6. 6. Renting Stamp duty 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 NEEd MoRE INfoRMATIoN? 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. NEEd MoRE 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 10 11
  7. 7. News Energy efficient homes Sustainable consumer-friendly green rating Confident 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 mortgage options. 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 mortgage solution? 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. Nationwide. 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. 13
  8. 8. Conveyancing Conveyancing 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 NEEd MoRE 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. 14 15

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