For most people buying a home will be their most important and largest investment, consequently it is important that you seek the correct advice from professional agents who ‘know the marketplace’- Halsall Estates fulfil that requirement.
It is essential that a buyer follows simple rules so as to make the transaction as smooth and trouble free as possible.
Rule One.
When you have chosen the property you wish to purchase, submit your offer to the selling agent, give as much background information as possible on your situation including any related sales and details of your mortgage requirements. We would strongly recommend that mortgage advice be sought prior to purchasing especially for first time buyers. The mortgage market is forever changing and it is important that you choose a mortgage to suit your financial commitments.
Halsall Estates can arrange an appointment with our specialist mortgage adviser.
Rule Two.
Once your offer has been accepted, the selling agent will require further details in order to instruct solicitors to act on your behalf. Having completed your mortgage application and paid your survey fee the building society/bank will instruct a surveyor to inspect the property. Surveys are undertaken in various ways depending on the fee. Providing that the surveyor is satisfied with the home you are proposing to purchase he will submit a report to the building society/ bank and a mortgage offer will subsequently be made. This will give you details on the condition, any necessary repairs and value both for mortgage and insurance reinstatement value.
Be careful not to confuse these two valuations as these figures can vary considerably and this in turn will lead to confusion as to the price that you are expected to pay for the property.
Rule Three.
Your solicitor will check the contract documentation, liaise with the vendors solicitors and ensure that all the necessary legalities are complied with ready for the completion date.
Rule Four.
Once you have signed your contract and exchanged with the sellers solicitor, having placed a deposit (usually 10% of the purchase price) a completion date will be set for the balance of the funds to be paid over.
Rule Five.
On completion you may have to pay stamp duty land tax (SDLT - a tax levied by
the government)
The rates are as follows:
For first time buyers only
Up to £250,000 - 0%
For all other purchasers
up to £125,000 - 0%
£125,001 - £250,000 - 1%
£250,001 - £500,000 - 3%
£500,001 to £1,000,000 – 4%
Over £1,000,000 -5%
Rule Six.
Finally, on completion day keys are not handed over to you until the sellers solicitor has advised the selling agent that all monies have been received. (This can mean that you may not be able to move into your new home until the mid afternoon.)
SURVEYS AND VALUATIONS
Mortgage lending valuations, homebuyers’ reports and building surveys are undertaken by chartered surveyors who are either fellows or members of the royal institution of chartered surveyors. Buyers have three options, which are as follows:-
Scheme One - Valuations
These inspections are undertaken by chartered surveyors who are instructed directly by the lending institution to prepare an open market value on the property, advising on essential repairs, condition and suitability of the property for lending purposes. Although in most cases lending institutions do release a copy of the report, it is for valuation purposes only and there is now a growing trend for the lenders not to release a valuation report.
Scheme Two - Homebuyers’ report
A homebuyers’ report is a pre-printed format report produced by the Royal Institution of chartered surveyors, which is designed for small terraced houses and more modern and larger detached dwelling houses from 1930 onwards. The report is suitable for purchasing as it identifies the description, style of construction and condition of the property, and gives a general appraisal for a buyer to decide whether or not to continue with the purchase and any repairs that are urgent or may be required in the future. It is quite feasible for a homebuyers’ report to be linked with a scheme one valuation.
Scheme Three - Building Surveys
This is an in-depth report which is far more detailed than a Homebuyers’ Report and where practical to do surveyors will carry out sub-floor inspections and roof void inspections.
Purchasing a property is the most expensive investment one makes and it is not advisable to rely on a Scheme One valuation. Buyers should consider a Homebuyers’ report or Building Survey to protect their interests. Using small independent chartered surveyors that are known in the area is far more preferable than a large multiple practice.
Independent surveyors will spend more time dealing with personal requirements and in some cases the independent surveyors of your choice will be on the panel of valuers for the lending institutions and can supply a mortgage valuation to the institution in a fully inclusive fee with the homebuyers’ report and building survey.
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