Getting the keys to your first home is a huge milestone, marking the end of a long journey of saving and searching. However, the process can seem daunting, filled with unfamiliar legal jargon and paperwork.
Understanding the legal framework isn’t just a box-ticking exercise; it’s about protecting your investment and ensuring no unforeseen surprises are waiting for you down the line. By navigating this stage with care, you can move into your new home with complete confidence.
Review the Contract Carefully
Once your offer is accepted, the seller’s solicitor will send a draft contract to your legal representative.
This document outlines the terms of the sale, including the price, the property boundaries and a list of ‘fixtures and fittings’ that are included. It’s vital you understand exactly what you are agreeing to buy.
For instance, are the sellers taking the garden shed or the custom-made blinds? The contract will specify this. You should also check for any restrictive covenants that might affect your future plans, such as rules against building an extension.
Scrutinise every clause with your solicitor before you proceed.
Conveyancing Services
Conveyancing is the legal process of transferring property ownership from one person to another. You’ll need a specialist to handle this for you.
As they will manage tasks like drafting the transfer deed and exchanging contracts, ensure you choose a reputable conveyancing solicitor or licensed conveyancer. Look for someone who communicates clearly and efficiently, as poor communication can cause significant delays.
It’s wise to get quotes from a few different firms and read their client reviews before making a decision. Appoint your legal representative as soon as your offer is accepted to get the process moving swiftly.
Check Your Mortgage Offer
Your mortgage offer is more than just a confirmation of the loan. It’s a formal legal document. It contains all the crucial terms and conditions of your borrowing, from the interest rate you have secured and the monthly repayment amount to the length of the mortgage term and details of any early repayment charges.
When you receive it from your lender, you need to read it meticulously to ensure everything matches the ‘Agreement in Principle’ you were initially given. Confirm all the details in your formal mortgage offer are correct before signing.
Carry Out Searches
Before you are legally committed to buying the property, your solicitor will conduct a series of investigations known as ‘searches’. These enquiries are made with the Local Authority and other bodies to uncover important information that isn’t obvious from a viewing.
Searches can reveal planning permissions for new developments nearby, whether the road is maintained by the council, or if the property is in a flood-risk area. The results protect you from future problems and are essential for a secure purchase. Therefore, instruct your solicitor to conduct all necessary property searches early on.
Budget for Fees & Taxes
The purchase price is the biggest cost, but it’s not the only one. You must budget for several other legal and administrative expenses that are payable upon completion.
These include your solicitor’s fee, the cost of the property searches, bank transfer fees, and Land Registry fees. Depending on the price of your home, you may also need to pay Stamp Duty Land Tax (SDLT), although first-time buyers often benefit from exemptions or reductions.
Ask your solicitor for a clear breakdown of all anticipated costs upfront to ensure you have the funds ready.
