Buying a Home in the United Kingdom...

Buying  a home in the United Kingdom is a fairly straight forward process that often can become quite protracted and difficult and  understanding the  process of how all the various parts fit together can help to take some of the stress away from what  is for most people is the biggest financial transaction of their lives. Solicitors, Estate Agents, Surveyors, Home Information Packs, it can seem like a mine field, add to this the threat of  gazumping and having to wade through endless mortgage deals, all  of which seem to suggest that they are the best deal can you leave you feeling worn out by the time ( usually about  three months) it takes to acquire your new home. If you want to avoid hiccups, frequenting yourself with the process will help.

Firstly before you start home hunting, two simple procedures can be carried out. Telephone and insurance broker or check online as to the cost of buildings and contents insurance in your chosen postcodes, often doing this online can be easier as it can be carried out anonymously and you can request multiple quotes without having to engage with a sales person. This should alert you to any problems in the particular area with for example subsidence etc. Many people often overlook insurance costs but they will need to be factored in to your calculations. Secondly, be realistic with the amount that you can comfortably afford each month, speak to a mortgage provider and find out how much you can borrow. Once you have done this, work out your monthly outgoings, once you feel comfortable with the figures , you can then set about hunting for a house within your price range. In addition to obtaining an in principle mortgage deal, to assist with choosing your home, make a list of your requirements and stick to these. What type of property do you need, does it have to be near local schools, transport links, how long do you intend to stay in the property, is it adaptable, could you manage to live in the property for several years if it proves you are unable to move because of market conditions.

If you are buying a property you will probably search via an estate agent and this  method is still the most popular method of advertising a property for sale. Estate Agents costs are usually met by the vendor. Remember, the Estate Agent acts for the seller of the property, not you and it is via the agent that any offer must be communicated.  Another thing to note is that Home Information Packs were made compulsory for three bedroom properties and larger from 10 September 2007  and any agent marketing a property, will be obliged to make sure this pack is given to you.

There are very few excuses for not being able to offer an information pack and your solicitor will be able to brief you on these. Sellers are Free to choose any agent they like but you can search on the NAEA website if you would prefer to only deal via an agent that falls under a code of compliance. If you make an offer on a property make sure that  you state that it is' subject to contract', this means you can withdraw  from the  deal if any problems arise. You can of course make an offer via the agent yourself or you may like to deal via your own solicitor. Of course, if you wish to instruct your solicitor to make an offer for you, this will add to your final legal bill.
Under the Estate Agents Act, an estate agent is legally bound to present any offer to the vendor, no matter what you offer. The laws are slightly different in Scotland where accepted verbal offers are legally binding.

Once your offer is accepted, ask the estate agent to conform that the property has been taken off the market. In some cases, the vendor may not appear keen to do this , especially if you have yet to sell your own property and it looks like you could be stuck in a chain for a while. The vendor will be keen to dispose of their own property as quickly as possible  and you may find your self a victim of gazumping. On the whole , estate agents try not to encourage this practice as in many smaller communities, estate agents can soon gain a bad reputation. Be warned though, a prospective buyer will often by pass the agent and try to communicate directly with the owner if they are determined to buy a property. A frustrated seller will often jump at the chance of a second offer if they feel that the deal will go through quicker.

Once the prices have been agreed, you will need to visit your mortgage provider and they will make arrangements for a survey at the premises and for a formal valuation to take place. Most people tend to opt for the cheaper home buyers survey but if the property is very expensive or has other unusual features such as being listed, it is often advisable to go for the full structural survey which is much more in depth. Whilst this is going on your solicitor will be checking the property title and performing local searches to discover if there is any important information that you need to be altered to .The home information pack will contain certain information that was previously only obtainable via a solicitor. However, remember that a solicitor you engage, will work on your behalf, they are professional and many people feel that this is more likely to protect their interests completely.

Once all the legal work has been carried out, you will exchange contracts and from this date you are legally obliged to purchase the property. It is from this date that Home insurance ( buildings cover) needs to be in force. When speaking to an insurance company it is as well to point out that you are insuring the property because you have exchanged contracts, and that you will not be moving in until after the completion or whatever date in the future. In some case, the vendor will have his only buildings insurance policy which contains a contracting purchasers indemnity extension, however most people do not like to rely on the cover provided by this policy endorsement. It must also be noted that this cover will only come in to force if you do not have your own policy and it should not be relied on, especially as home owners do not effect buildings insurance at all.

Following the exchange of contracts, you will complete the deal, usually within four weeks, at this point it is usual to move in to the property.