UK Property Guide

• Flexible
• Offset
• Current Account
• Repayment
• Interest Only
• Pension Mortgage
• ISA Mortgage
• Endowment Mortgage

• Fixed Rate
• Capped Rate
• Discount to Standard Rate Variable
• Standard Rate Variable

The Mortgage Code

Instructing a Solicitor

A solicitor is usually instructed to deal with the legal transfer of ownership of the property, it is essential that when buying a property that you obtain a good title (ownership) to the freehold or leasehold interests. There is a little more work involved in purchasing a leasehold property and particular care needs to be taken with respect to restriction on use, covenants and other responsibilities. Solicitors will check through deeds and conduct local searches to ensure that no motorways for example are planned to be built near the property. In addition it may be advisable to have an environmental survey of the property if it is situated in a mixed residential/industrial area or is built on the site of an old garage for example.

The process consists basically of a review of draft documentation and answers to contract enquiries. The property is likely to be registered land which means the title deeds are registered in a land or charge certificate at HM Land Registry Sometimes the property consists of " unregistered" land and copies of all deeds and documents tracing the title back many years will be reviewed by your Solicitor. Enquires will be made with specific questions asked in respects of copies of planning permission consents, guarantees and whether there has been any disputes with neighbours.

Once draft contracts have been agreed by your solicitor and the sellers solicitors the process moves forwards to a commitment from both buyer and seller through an exchange of contracts and the payments to the vendors solicitor of 10% of the purchase costs (sometimes 5%) together with an agreed date for completion and possession of the property.

Access to the property is granted on receipt of full payment by the purchaser. After completion payments are made in respect of stamp duty and other disbursements and the Land Registry informed of the details of the new owner(s).

A Land certificate or if a mortgage is involved a charge certificate is issued and in the latter case retained by the mortgagees.

The solicitor will charge, depending on complexity a minimum of say £500 (ex VAT) and will also explain the mortgage deed or charge to you as well as to protect your interests. As an alternative to a solicitor a licensed coveyancer may be used. Some booksellers have stocks of DIY guides to conveyancing but we would always recommend you use a reputable solicitor or licensed conveyancer.

Instructing a Surveyor

If you are buying a property with a loan or mortgage the property will have to be valued. Mortgage valuation reports are usually brief and to the point and because no legal relationship exists between you and the valuer because the mortgagee has instructed him you have no comeback if subsequent problems arise. It is therefore advisable to instruct a Surveyor yourself not only to establish that the proposed purchase price is reasonable but also to inspect the property for defects. There are different levels of survey reports ranging from a "homebuyers report" which is a little more comprehensive than the mortgagees valuation report to a full structural survey although even with the latter it cannot be comprehensive without lifting floor coverings etc.

Generally speaking the older or more unusual properties should have a structural survey. Also properties in land subsidence or flood areas should be fully reviewed by a qualified Surveyor acting on your instructions.Costs can range from £450 to over £1000 depending on the type of survey and size of the property.

<< Your Budget || Sellers Guide >>