BNR Property Services LoughboroughA Letting and Estate Agents with a difference!

Buyers

Property Buyers

Looking for a new property to buy and need help, we can help you with all aspects of purchasing a new property to make the process as easy as possible for you.  Whether you to be a  first time property buyer, buy to let or a frequent mover.

 

Register now email us and let us know:

The sort of property you are looking for? details of the budget you have in mind?  If we do not have the appropriate property we will seek the market for you.  LOOK at our points below for the basic process of buying a property and what you should consider.  We will keep you informed of all new property as and when the properties enter the Market by email if you contact us.

Remember be Focused and Strong when looking for a suitable property, arranging a viewing and making an offer if you wish to proceed further.

 

How much can you afford

Firstly you will need to decide how much you can afford to spend on a suitable property looking at how much money you have available for the deposit and how much money you will need to borrow or can borrow.

There are a wide range of different financial providers of which offer loans to you buying a property.

  •  Banks
  •  Building Societies
  •  Mortgage Advisors
  •  Independent Financial Advisers

 

We can give your details to an Independent Financial Advisor for help and answer any questions you may have being Property Buyers.

Some building societies now provide home buyers with a certificate that states that a loan will be available provided the property is satisfactory.  You may be able to get this certificate before you start looking for a property.  Building societies state that this certificate may help you to have your offer accepted by the Seller.

 

What to Consider:

You need to be sure you will have enough money to pay for all the additional costs. These could include:-

  •  The buyer’s solicitor’s costs
  •  Land registry fee
  •  Survey fees
  •  Stamp Duty Land Tax
  •  Local authority searches
  •  Removal expenses
  •  Final bills, for example, gas and electricity, from your present home which will have to be paid when you move
  •  Fees, if any, charged by the mortgage lender or someone who arranges the mortgage, for example, a mortgage broker
  •  Valuation fees
  •  VAT

For more information about Stamp Duty Land Tax, go to the Directgov website at www.directgov.uk

Please be aware that if you start the process of buying a property and then the sale falls through you may have already paid for the valuation or the survey.  If the Solicitor has started any legal work or searches you may also be liable to pay for the work completed.

 

New property Running Expenses

Have you also considered the Running Expenses of the new property:

These could include:

  •  Community charge/council tax
  •  Water rates
  •  Ground rent, if the property is leasehold
  •  Service charges, if the property is a leasehold flat
  •  Insurance costs, including life insurance, buildings and contents insurance
  •  Heating bills. An energy performance certificate can help and this is made available from the vendor

You may have to pay a deposit on exchange of contracts previously before the purchase is completed and the money is received from the mortgage lender.  The deposit is often 5% – 10% of the purchase price but this can vary.

 

Deciding on a property

 

  •  Take all the above into consideration
  •  Look for a property to suit your requirements and needs
  •  Look for a property within your budget
  •  View the property
  •  Take into account any additional work that may be required before you move in or when you have moved in ie. repairs and redecoration.

 

Warranties for newly-built properties

If the property is a newly-built property, check it has a Buildmark warranty, warranties are organised by the National House-Building Council (NHBC) which is an independent organisation.  Builders must be able to show that they are technically and financially competent.  They must also agree to keep to the NHBC Standards.

The scheme covers homes built by NHBC registered builders once the NHBC has certified them as completed.  The scheme will protect your money if the builder goes bankrupt after contracts have been exchanged but before completion.  It also covers defects which arise because the builder has not kept to NHBC Standards.  For any further advise or information, go to the NHBC website www.nhbc.co.uk

 

Is the property Freehold, Leasehold or Commonhold

 

Freehold property

If the property is freehold, the land on which the property is built is part of the sale and no ground rent or service charge is payable.

 

Leasehold property

A property may be Leasehold, the land on which the property is built is not part of the sale. You have to pay ground rent to the owner of the land – who is called the Freeholder.

The length of a lease can vary and you should check that the length of the lease on the property you are interested in purchasing is acceptable to the mortgage lender.

In addition to ground rent on a Leasehold property, you may have to pay an annual service charge.  This usually happens with an apartment or flat.  The service charge covers such items like maintenance and repairs to the buildings, cleaning of common parts and looking after the grounds.

 

Commonhold property

If the property is Commonhold, this means that you can buy the freehold of an apartment or flat and own common parts of the building.  Jointly with the owners of other apartments or flats in the building known as a Commonhold association.

In Commonhold a ground rent or service charge is not payable.  A share of the Commonhold association’s expenditure on maintenance, insurance and administration will be payable for the common parts of the building.

 

Making an offer

After the viewing of a property and if you wish to proceed now is the time to make an offer.

BnR Property Services will put your offer to the Seller, please take into account when making an offer any repairs to be done which may affect your budget.  If the Vendor does not accept the first offer you can increase the offer for the property and BnR Property Services will put the further offer forward to the Seller.

There is no limit to the number of offers you can place, but please consider other offers are being put forward to the Seller as well.  If you make a written offer it will always be made subject to contract.  This means that you will not be committed to the purchase before finding out more about the state of the property.

If you make an oral offer this is never legally binding until a holding deposit if applicable has been received by BnR property Services.

 

When the offer has been accepted you will have to consider the following:

 

  •  Is a holding deposit payable
  •  Arranging the mortgage
  •  Is a survey necessary
  •  Who will complete the necessary legal work
  •  Whether you want to buy with someone else

 

Holding deposits

Once the Owners (The Seller) of the property have accepted your offer the potential property buyers will be asked to pay a deposit to BnR Property Services to ensure you are serious about going ahead with the purchase, it is repayable if the sale does not go ahead.

 

Arranging a mortgage

If you have not already begun to arrange a mortgage, you should start to do this now, we can provide you with a competent Financial Advisor.   It should take about three weeks from the application for the mortgage to the formal offer being made, by the mortgage lender if you are successful the timescale may vary.

 

Property Valuation

The Lender of the money will want to have the property valued.  To make sure that the lender could get the loan amount back if for any reason you the home buyers stopped paying your mortgage instalments and the property had to be put back up for sale.  The property valuation will be done by a competent surveyor on behalf of the mortgage lender but you the home buyers will have to pay for the cost of the valuation.  The fee will be payable in advance.

 

Mortgage Consideration

If the amount of money to be loaned is more than a certain percentage of the property valuation usually 75-80%, your mortgage lender may make a condition to the loan and you may need to take out an extra insurance to cover the extra amount loaned.  You will pay a single premium to your mortgage lender which is added to the loan in most cases.  The term used is a higher lending charge or mortgage indemnity guarantee.

Arranging a survey

The valuation completed by the Mortgage Lender is not a survey.  You need to consider if you need an independent survey to be carried out in addition to the valuation completed.

 

The Survey

 

  •  Would consider the value of the property
  •  Examine the Structure of the property
  •  Identify any existing or potential problems

 

There are two levels of survey

A full structural survey, this is suitable if the property is large more than 80/90 years old or in doubtful condition.

An intermediate or property, apartment, flat buyers report this report investigates the condition of the parts of the property that are visible and may recommend further tests.  This is particularly suitable for properties built this century which appear to be in reasonable condition.  It is much cheaper than a full structural survey.

BnR Property Services can arrange for these surveys to be completed by the same competent Surveyor However you can use a Surveyor of your choice if you wish.

 

Conveyancing

The legal process of transferring the ownership of the property from the present owner to the property buyers is known as Conveyancing.  We will provide you with a quotation from our recommended Conveyancer for you to deal with directly.

 

  •  Use a solicitor
  •  Use a licensed conveyancer

We will provide you with a quotation from our recommended Conveyancer for you to deal with directly if you wish to proceed or further find quotations from other Qualified Conveyancers.

Please complete the appropriate form provided, and we at BNR Property Services will happily but put you in touch with Conveyancers.  The form can be emailed or posted to us!

Click Here to Download the Conveyancing Form

 

Finding out how much it will cost, if you choose to use your own Conveyancer

Before making a choice find out the probable costs as to who will do the Conveyancing.  You should:

 

  •  Check whether the figure quoted is a fixed fee or depends on how much work is involved
  •  Check that the figure includes stamp duty, search fees, land registration fees, expenses and VAT and get a breakdown of these costs
  •  Find out what charges, if any, will be made if the sale falls through before contracts are exchanged.

 

Buying with someone else

Such as your husband, wife, civil partner, partner, relative or friend.

To buy your property with someone else, you can choose one of two options:

 

  •  Beneficial joint tenants
  •  Tenants in common

 

Whether you own the Freehold or Leasehold of the property.

If you are thinking about buying a property with someone else, you should get legal advice of ownership options that suit you.  Beneficial joint tenants

If you own your property as a beneficial joint tenant, it belongs to you and the other Owner(s) jointly.

  •  You can’t re-mortgage or sell the property without the agreement of all the other Owner(s).  However if there is a dispute, an owner can apply for a court order.
  •  You don’t own specific shares in the property and you can’t give away a share of the property in a will.
  •  If you die, your interest in the property passes automatically to the other Owner(s).

 

Tenants in common

If you own your property as tenants in common, it belongs to you and the other Owner(s) jointly.

  •  But that you all also own a specific share of its value.  It is up to you to decide how much each share will be.
  •  You can give away, sell or mortgage your share.
  •  If you die, your share of the property does not pass automatically to the other owner(s).  You can leave your share to whoever you like in your will.

 

Insuring the property

You should make sure that buildings insurance is arranged from the date of exchange, because once contracts have been exchanged you are responsible for the property.

You will be able to get information on buildings insurance from our insurance pages.  Completion of the purchase usually takes place about four weeks after exchange of contracts, although it can be earlier.  On the day agreed for completion:

 

  •  The mortgage lender releases the money
  •  The deeds to the property are handed over to your solicitor or licensed conveyancer
  •  The seller must hand over the keys and leave the property by an agreed time
  •  Ensure final meter readings have been taken by the Seller before you move in

Contact Us for any further information, requirements or services you need being Property Buyers.  We look forward to assisting you with the purchase of your property.  Make moving easy with BnR Property Services.