Eight things to remember when Buying your House

Buying a house is one of the most significant investments that most people make in their lifetime. Buying a house can be daunting and complex whether you are a first-time buyer or an experienced property investor. In addition to finding the perfect home, there are numerous legal considerations that you need to keep in mind when purchasing a property, but that is where your Solicitor comes in. As conveyancing experts, they will know the property market inside out and the processes involved in buying your dream property.

If you are buying a house in England and Wales, there are several important legal aspects that must happen to ensure a smooth and successful transaction. In this article, we outline eight crucial legal issues that your Conveyancer will assist you with when buying a house.

1 - Conveyancing

Conveyancing is the name of the legal process of transferring the ownership of a property. You should engage with a solicitor to handle the legal aspects of the transaction, as it can be complex, and clear procedures must be followed for a successful outcome. We recommend instructing your Conveyancer as soon as your offer is accepted so that the transaction can proceed as smoothly and efficiently as possible. 

2 - Property searches

Your Solicitor will conduct a range of property searches to check for any potential issues with the property that could affect you further down the line. These include Environmental, Drainage and Local Searches, but other searches may be required depending on the type of property and its location. These could identify, for example, whether the property is listed, subject to a tree preservation order or whether there are highways or planning decisions that could affect the property. Once these searches have taken place, the Solicitor will report back to you about any issues found or if there is any cause for concern. 

3 - Stamp Duty Land Tax 

Stamp Duty Land Tax is a self-assessed tax you must pay when buying a property over a certain price. The rules and rates for Stamp Duty Land Tax vary depending on the property's value and other factors. 

4 - Exchange of contracts

Your Solicitor will have negotiated the terms of the contract with the seller. The Exchange of Contracts is the point at which the buyer becomes legally committed to buying the property, and the seller is legally committed to selling it. Your Solicitor will explain the contract terms to you and the implications of the exchange of contracts. 

5 - Completion

At completion, the purchase price (taking into account any deposit paid at the exchange of contracts) is paid to the seller, and the buyer becomes the property owner. Your Solicitor will tell you when this has happened, and you will then be able to collect the keys from the estate agent.

6 - Property ownership

There are two types of property ownership in England and Wales: Freehold and leasehold. Your Solicitor will search the Land Registry to determine whether the property you are buying is owned on a freehold or leasehold basis. Your Solicitor will explain the implications to you and any obligations you might have to fulfil if you buy the property.

7 - Mortgage

If you need to take out a mortgage, it is essential to understand the terms and conditions of the mortgage agreement. Mortgage advisors and solicitors often work together, helping protect your interests and offer the best financial options for you. Your Solicitor will need a formal Mortgage Offer from your chosen Lender before proceeding to the exchange of Contracts.  

8 - Property Insurance

When you exchange contracts, arranging adequate insurance coverage for the property is essential. Your Solicitor will advise when to put property insurance in place and will report if any special considerations need to be made when obtaining quotes. For example, the Environmental Report may have highlighted the property is in a high flood-risk area which will need to be declared to the insurers. 

Further help and advice

Those are the Eight important things to remember when Buying your House. We hope you found this article helpful, but should you have any further questions or concerns, please contact our Conveyancing team on 01329 288121 or email conveyancingenquiries@warnergoodman.co.uk. We can talk you through the buying process and provide a quote to help you understand the costs involved.