The Buying Process

David A Wood & Associates recognises that purchasing a home is probably the most expensive and important transaction you will have to make. We feel confident that the service we shall provide, together with our local knowledge of property, we will be able to find your dream home. To help you with buying your new home, please find below a list of procedures for you to follow:

Registration: Register your details and property specification either by email, telephone or in person. Complete the application form as thoroughly as possible which will enable us to match your details to all our available properties. Once you have registered your details with us you will automatically receive property details either by text to your mobile phone using our SMS text service, by email, or by downloading and printing details from our website.

Viewings: When you select a property to view you can either contact us by email or telephone to arrange the viewing. We will contact the vendor as quickly as possible to arrange a mutually convenient time

It is important to plan your finances.

So how do you plan? The first step is to sit down and calculate all of the associated costs, which not only means the ongoing costs but also the upfront costs that you will have to pay.

Arranging the Finance

Before you even begin to search for your dream home, you need to look at what you can realistically afford.

One off costs

Deposit

Many lenders may ask for a 5-10% deposit of the total purchasing cost. This deposit will decrease the amount of money borrowed, and lower monthly costs and the total interest paid on the mortgage. As house prices continue to rise, more and more lenders are offering 100% and even 125% mortgages to first time buyers, although this may mean higher interest rates.

Surveyor’s Fees

A lender will insist on a basic valuation survey being conducted at a cost of around £250. This will satisfy the lender, however you are advised to invest in a detailed Homebuyer’s Survey or full structural survey.

Stamp Duty

If the purchase price of the property is over £125,000 then you will have to pay Stamp Duty Land Tax. This will cost between 1-4% depending on the property price. As a promotional incentive property developers may pay the Stamp Duty for you, and some ‘disadvantaged’ areas are exempt.

The table below details the amounts due.

Consideration amount Duty Due
Up to and including £125,000, provided a Certificate of Value of £125,000 is included in
the Document		 Nil
Over £125,000 but not more than £250,000, provided a Certificate of Value for £250,000
is included in the Document		 1%
Over £250,000 but not more £500,000, provided a Certificate of Value for £500,000
is included in the Document		 3%
Over £500,000 4%

Solicitor’s and Conveyancer’s Fees

These cover the paperwork involved in buying a property and they will vary depending on the property value and location.

Fees & Searches Approx. Cost
Legal Fees Start from £500 + VAT
Land Registry Fees £40 - £700
Local Authority Searches Up to £250
Drainage and Local Environmental Searches £30 - £40 each
Administration Costs Around £50

Lender’s Arrangement Fees

These are the charges passed on to the buyer by a lender for arranging a mortgage. These will include a booking fee of about £150 (limited offer mortgage only) and an arrangement or completion fee, normally between £100-£400.

Lender’s Insurance Premium

A high percentage loan above the normal lending charge limit (usually 80% or 90%) will incur a lender’s insurance premium. This protects the lender if you are unable to make payments in the future. You can usually add the cost of it to your mortgage if it doesn’t take you above the lender’s maximum loan for the property value, but this will increase your interest charges.

Moving Expenses

These will vary widely depending on distance, location and the amount of personal belongings. To make sure you receive a competitive price, we advise you to seek three or four quotes from removal companies.

Ongoing Monthly Costs

Mortgage Repayments

These will vary depending on the type of mortgage you choose. A repayment mortgage will include ‘capital and interest’ payments, whilst an interest-only mortgage will consist of ‘interest’ payments only. If you have an interest-only mortgage, you should budget for monthly investments such as a pension, ISA or endowment policy, which will pay off the mortgage at the end of the term.

Protection & Cover

A lender may insist that you take out a life assurance policy, if you do not have an endowment policy linked to your mortgage. You are advised to shop around since you are under no obligation to purchase this from the lender. The monthly payments can be relatively low and the insurance pays off what you owe if you die before the mortgage is repaid.

Buildings & Contents Insurance

Similarly to protection and cover, the lender may insist that you have buildings insurance, however you can shop around elsewhere.

Council Tax & Bills

Council Tax is a local tax, set by councils to help pay for local services like policing and refuse collection. How much Council Tax you pay varies not only by property band but also each different council sets its own Council Tax rates. You will need to contact your local Council to find out what you will need to pay.

Viewing A Property

It is not easy to know how to prepare for a view. What should you look for? What questions should you ask?

The viewing will not only enable you to determine the suitability of the property, it also gives you a chance to speak with the sellers to find out their situation and current position within the property chain. This can strongly help your chances of having your offer accepted if the owner of the property is familiar with your position within the property chain.

You should spend time researching the property and the surrounding area before you view to avoid wasting your time viewing unsuitable property.

Try to arrange the viewing during the week as the property may have been sold or an offer made by the weekend. Make sure you view the property during the day when you can get a better look and spot problems. If you like the property then go back for another view at an alternative time of the day to get a different perspective.

Take along a friend or family member, not just for safety reasons, but to provide an alternative view. They may spot things that you miss or feel comfortable asking the upfront and direct questions that you prefer not to ask.

Don’t be afraid to ask direct and blunt questions about the property, the neighbours and the surrounding area.

Take your time and don’t feel pressured.

Things to look out for and questions to ask

Inside

Outside

Making an offer - The offer procedure

Note! The Estate Agency Act 1991 will require you to provide financial information to verify your position before David A Wood & Associates are able to recommend your offer to a vendor to proceed with a sale. We would however urge you to place an initial offer at your earliest convenience to register your interest to prevent a sale being agreed to another purchaser.

Once you’ve found your dream home, it is time to make an offer. It is in your interest to make the lowest and realistic price as possible. If you are offering less than the asking price then explain why to the seller e.g. over your budget, property needs work. Make sure you tell them how much you want the property and that you have the funds ready and waiting.

It is a good idea to check the sale price of other local properties to check whether your offer is in line with the market value.

Put your offer in writing and preferably hand deliver the letter, including the following information:

Where to Buy

If you are looking to move to a different area that you are unfamiliar with, it is important to research the area well. We have put together a list of things that you should consider and where to go to find out more information.

Employment

It is important to research the employment opportunities that are available in the region to gain an understanding of your job prospects. To access the latest information on local jobs visit:

Schools, Childcare, and Nurseries

Find out about the primary and secondary schools, childcare, nurseries and out of school care in the area. If you choose an area because of the neighbouring school then make sure there are available spaces before you make an offer.

Neighborhood

Ask the seller about the neighbourhood and find out further information at the following websites:

Public & Road Transport

You should research the local public transport and road network at the following websites:

Surveys

When you are buying a property it is important to get a surveyor’s report about the property’s overall condition. A surveyor is a qualified building inspector who can identify any problems or weaknesses with the property.

There are three types of surveys:

  1. Valuation – this will be carried out by the lender prior to mortgage approval.
  2. Homebuyer – this is a basic survey that will provide a general overview.
  3. Full Structural – this is recommended for older properties and those in need of restoration.

Solicitors & Conveyancing

Conveyance is the legal process by which ownership of a property is transferred from the seller to the buyer. Whether you are a buyer or seller, you will want to hire a solicitor or licenced conveyancer as it can be a complicated process.

You can find a solicitor in your area by contacting The Law Society.

An alternative 21st Century approach is to use online conveyancing supplied by Easier2Move. Easier2Move offer a high quality and competitively priced conveyancing service, delivered by a specially selected panel of independent legal firms. You can receive an instant quote online and you are kept up to date at all times through the online tracking service as well as email and SMS updates. If your sale falls through they will only aks you to cover the cost of searches that have been paid out on your behalf.

Mortgage Offer

The lender is now in possession of the Mortgage Valuation Survey and, subject to the findings of this report, receipt/approval of the mortgage application. Provided all references and checks have been conducted satisfactorily, the lender will send a formal mortgage offer to the purchaser and their solicitor. The document is then signed and returned and funds requested by the purchaser’s solicitor.

Solicitors Role

Your Solicitor

Seller’s Solicitor

The draft contract is drawn up by the vendor’s solicitor and forwarded to the purchaser’s solicitor for consideration. Any additional queries or questions will be asked and answered and the contract amended accordingly, subject to final approval.

Exchanging Contracts

Exchange of contracts: Once the contract has been signed by both parties, a deposit (normally a small percentage of the purchase price) is paid by either bank transfer or banker’s draft. At this stage both parties are legally bound and will agree on a completion date.

Your Solicitor

Seller's Solicitor

Completion Stage

Completion usually follows a few days or weeks after exchange of contracts. The balance of the purchase price is transferred from the purchaser’s solicitor to the vendor’s solicitor and the keys are released.

Your Solicitor

Seller's Solicitor

Arranging the Move

If you need to use a removal company, be sure to get three or four quotes to make sure you get the best deal.

Congratulations you have successfully bought your new home.

We are proud to be associated with and recognized by the following companies and associations