Property Buying Advice

Purchasing a home is likely one of the most significant investments you'll make in your lifetime. Whether you're a first-time buyer or an experienced investor, it's crucial to approach the process with thorough preparation and understanding.

At Premium Estates, we pride ourselves on guiding buyers through every step of the process - from the initial viewing enquiry to handing over the keys to your new home.

Our local reputation is built on honesty, transparency, and a commitment to helping you achieve the best possible outcome. We recognise that today's buyer could be tomorrow's seller, and we aim to impress with our helpful attitude and extensive local knowledge.

This guide is intended for anyone considering purchasing a home, particularly first-time buyers who may be unfamiliar with the process. Even seasoned buyers can benefit from understanding the latest key steps. The guide focuses on freehold properties but includes a brief overview of buying leasehold properties.

The Buying Process

  • Viewing Properties: Start your search online and through local estate agents. Visit properties to assess their condition and suitability.

  • Making an Offer: Once you find a property you like, make an offer. Consider negotiating to get the best deal.

  • Legal Work: Instruct a solicitor or conveyancer to handle the legal aspects of the purchase. They will conduct searches and ensure everything is in order.

  • Surveys and Valuations: A survey will help identify any potential issues with the property. This is different from a mortgage valuation, which is primarily for the lender's benefit.

  • Completion Day: On completion day, your solicitor will transfer the remaining funds to the seller’s solicitor, and you will receive the keys to your new home. Make sure to take meter readings and arrange for utilities to be transferred.

  • Settling In: Update your address with relevant organisations and consider changing the locks

Who’s Involved?

During the home buying process, various specialists can offer advice and assistance:

  • Estate Agent: Guides you through the buying process and coordinates with other parties

  • Lender: Provides the mortgage for your property purchase.

  • Insurer: Offers building insurance required to purchase the property and contents cover for your belongings.

  • Legal Representative/Conveyancer: Handles the legal work necessary to buy the property.

  • Surveyor: Assesses the physical condition of the property and provides an independent valuation.

  • Mortgage Broker or Adviser: Advises on the best mortgage options for you.

  • Specialist Professional or Tradesperson: Provides advice on any maintenance or building works identified in the survey.

  • Energy Assessor: Answers queries regarding the Energy Performance Certificate (EPC).

What Can You Afford?

Before you begin your property search, it’s essential to have a clear idea of your budget. Most buyers require a mortgage to purchase a home. Typically, you can borrow a multiple of your household income, influenced by your credit score. Adding this to your deposit gives you a rough budget.

The larger your deposit, the more favourable the mortgage deals you can access. Additionally, the government offers several schemes to help people buy homes, including:

  • Help to Buy: Equity Loan

  • Help to Buy: ISA

  • Lifetime ISA

Ensure you understand what these schemes can offer and their limitations. Remember, buying a property involves various expenses beyond the purchase price, such as stamp duty, surveys, conveyancing fees, search fees, building insurance, moving costs, and mortgage-related costs.

Leasehold and Freehold

Understanding whether a property is freehold or leasehold is crucial. Freehold means you own the property and land outright, while leasehold means you own the property for a specified number of years.

Leasehold properties involve ground rent and service charges, and the lease length can impact property value and mortgage eligibility.

Ensure you understand all terms and consult your legal representative for detailed advice.

Choosing a Home

Most property searches start online or through local estate agents. Consider the following criteria when browsing properties:

  • Affordability: Ensure the property fits within your budget.

  • Location: Consider the region, neighbourhood amenities, and proximity to schools and public transport.

  • Transport Links: Assess your commute to work or school.

  • Property Type: Decide between a flat (usually leasehold) or a house (often freehold).

  • New Build vs. Second-Hand: New builds offer modern amenities but may come with a premium price. Second-hand homes may offer more value and opportunities for improvement.

  • Bedrooms: Consider current and future needs.

  • Energy Performance: Check the EPC for energy efficiency and potential improvements.

  • Living Space: Think about your lifestyle and storage needs.

  • Internet Speed: Ensure it meets your requirements.

  • Parking: Check availability and any associated costs.

  • Scope for Extending: Consider the potential for future expansions.

  • Garden: Decide on the need and maintenance level of an outdoor space.

  • Conservation Area or Listed Building Status: Understand restrictions and additional responsibilities.

  • Condition: Assess the need for repairs or renovations.

  • Drawbacks: Evaluate potential compromises, such as noise or distance from amenities.

Making an Offer

Making an offer is a significant step. Don’t feel pressured to rush. Consider what’s included in the offer, the property’s worth, your budget, and the seller’s circumstances.

Once your offer is accepted, ask the estate agent to stop marketing the property and provide details to your legal representative.

Ask the estate agent pertinent questions about the property’s history, seller’s circumstances, and any material facts that could impact your decision. Multiple visits to the property at different times can provide valuable insights.

Instructing a Legal Representative

Selecting a qualified legal representative is essential. They handle legal checks, property searches, and the transfer of ownership. Get quotes from multiple professionals and ensure they are regulated by the appropriate body.

Searches

Your legal representative will conduct property searches to identify any restrictions or issues. It’s advisable to order searches early to avoid delays.

You might need indemnity insurance for certain issues uncovered by searches.

Your Mortgage

Complete a full mortgage application with your chosen lender. This process includes a mortgage interview and a mortgage valuation, which is not the same as a survey.

Preparing to Apply

Before speaking with a mortgage broker or adviser, check your credit score. A higher score increases your chances of getting better mortgage deals. Mortgage lenders assess how much you can borrow and how affordable your monthly payments will be based on your income and current outgoings.

Consider paying down existing debts before applying for a mortgage, as these payments are factored into your borrowing capacity. Detailed information on improving your credit score and preparing for a mortgage application is available from the Money Advice Service.

Different types of mortgages are available, and using a price comparison website or a mortgage broker can help you find the best product for your needs. A mortgage decision in principle (DIP) from a lender gives you a borrowing estimate and signals to sellers that you are a serious buyer.

ID Checks

To prevent money laundering and fraud, estate agents, lawyers, and mortgage lenders must check your identity. At various stages, you will need to provide proof of identity, address, and the source of your funds. Prepare the following documents in advance:

  • Proof of identity (passport, driving licence, EEA member state identity card)

  • Proof of address (recent utility bill, bank statement, driving licence)

  • Proof of source of funds (payslips, P60 form, tax returns for self-employed individuals)

Failing to provide these documents can delay the process.

Be vigilant against fraud during the home buying process. Verify any changes to bank account details with your legal representative and be cautious about sharing information on social media.

Survey

A survey provides a detailed inspection of the property’s condition. Different survey levels are available, and a trained professional should carry it out. Address any significant issues identified in the survey before proceeding.

Exchange and Deposit

Exchange of contracts legally binds you to the purchase. Ensure all conditions are met, including organising buildings insurance and paying the deposit. Confirm the completion date and be aware of potential penalties for withdrawing after exchange.

Time to Move!

Plan your move carefully, considering whether to hire professional movers. Book early and check for additional charges and insurance coverage

Preparations for Moving

Between exchange and completion, arrange utilities, inform your removal company, and start packing. Forward your post to your new address and ask the seller for practical information about the property.

Completion and Moving

On completion day, your legal representative transfers the remaining funds, and you receive the keys. Take meter readings and prepare a box of essentials for the first night in your new home.

After Moving

Update your address with local authorities, utilities, medical providers, DVLA, banks, insurance companies, and any other relevant organisations.