First-Time Homebuyer? Be Prepared and Stress Less

The process of legally purchasing a property need not be complex or stressful. Before even instructing your conveyancer, there are several steps you can take to ensure a smoother transaction.

Costs and your conveyancer

Selecting a conveyancer can be quite daunting, as a Google search will yield thousands of results. It's crucial to take the time to compare costs and inquire about any additional fees, such as what you would owe if the transaction falls through. Find out if you will have a dedicated conveyancer to contact, or if a team will manage your transaction.

Do not be afraid to ask questions

Before consenting to the exchange, ensure you comprehend all the implications of your purchase. Are there shared maintenance expenses for communal spaces? Must you pay regular service charges? Are there any restrictions on reselling the property? If correspondence from your conveyancer seems incomprehensible, don't hesitate to request a clearer explanation. Your conveyancer is there to serve you and secure the most favorable outcome, which requires precise communication.

If you have a timescale, let them know

Inform your conveyancer of your preferred completion date. They will consider this and inform you if it appears unattainable as the process unfolds. Completion can only occur when all parties are prepared, but the earlier we notify everyone of potential target dates, the more smoothly it will go. This is also true for any arrangements you may have with the sellers, like purchasing furniture. It's best to document and share these details as soon as possible.

If you notice that information does not seem correct

Remember, your conveyancer has not seen the property you're purchasing. You must rely on the information from the seller's conveyancer. Issues often arise with additional land parcels; many properties come with detached gardens, allotments, or garages that possess separate title deeds. Ensure you thoroughly check the title plan provided to you, verifying it matches the property you intend to buy. This scrutiny should extend to all forms and title deeds sent to you. If the documents suggest no alterations or additions have been made, yet the property includes a conservatory or loft conversion, it's crucial to discuss these discrepancies with your conveyancer for thorough investigation.

Getting ready for exchange

For the exchange to occur, you must have already provided your conveyancer with the deposit. Typically, the seller's conveyancer requests 10% of the purchase price upon exchange. If your deposit is less than this, inform your conveyancer so that it can be communicated and agreed upon in advance. If you require time to transfer funds, make sure your conveyancer is aware.

Once the exchange date is set, your conveyancer will need formal authority from you, usually obtained over the phone. This verbal authority is required from all parties and is valid only on the day it is given. If an exchange agreed upon for Monday does not take place, new authority is needed the following day. If you are not available for calls, ensure this is communicated to your conveyancer.

After the exchange, it is crucial to arrange buildings insurance for your new property. Even though you do not technically own the property yet, you are obligated to purchase it and must protect your interest accordingly.

Completion

On completion day, your main task is simply to await the completion of the funds transfer and the dating and transfer of the title deeds into your name.

After this process is finalized, both your conveyancer and the estate agents will contact you, and you can then collect your keys. Typically, keys are collected from the estate agents, but you may choose to collect them directly from the sellers if you prefer.

Your conveyancer will send you a letter confirming your purchase of the property, which can serve as proof of ownership for certain needs, such as obtaining local parking permits, while the title deeds are being updated.

Considering life insurance is a prudent step to protect your family from mortgage debt in case of your death. While making a will is not legally required upon purchasing a property, it is recommended. If you already have a will, updating it to include your new property would be a wise decision.