Getting a mortgage
When you buy a house your first step is to find out exactly how much you can afford to borrow and the size of the deposit you will need. It is advisable to seek a mortgage in principle to confirm the lender is happy to lend the amount of funds you require.
There are many different types of mortgages therefore, we always recommend that house buyers seek independent financial advice to find the mortgage which is right for them and their circumstances.
Do I need a solicitor?
Most home buyers appoint a solicitor to look after their interests when they purchase a property. A solicitor specialising in conveyancing will take care of all the legal processes and documents which include contracts, title deeds and make all necessary searches and enquiries on your behalf. They will exchange contracts between the parties, receive funds from your lender to make payment to the seller and complete the purchase of your property.
How do I reserve my new home?
New homebuyers will be asked to pay a £500 reservation deposit to reserve the home of their choice. This effectively takes it off the market and prevents another purchaser from reserving it.
On payment of the £500 fee, the Homebuyer will be given a Reservation agreement that sets out clearly the Reservation’s terms, including but not limited to:
- The amount of the Reservation fee
- The property plot number and address
- The purchase price
- How and when the reservation agreement will end
- How long the price remains valid
- Information regarding any potential management services the homebuyer must pay for and estimated costs
- Information regarding any other fees, liabilities or costs
The reservation fee will be reimbursed in full if the Reservation agreement is cancelled or comes to an end.
The appointed solicitors will then carry out the legal process whilst you finalise your finance arrangements.
Mortgage Lender Valuation
Your mortgage lender will usually need to carry out a valuation of the property you are purchasing, before they agree to lend you the funds. You will need to check with your lender regarding any fee for this. Once the valuation has been approved by the lender they will provide a formal mortgage offer to enable the purchase to progress.
Exchange of Contracts
Your solicitor handles the purchase of the property on your behalf. Two identical contracts are produced to transfer ownership of the house from the developer to the buyer and the sale of the property is legally binding when the contracts are signed and formally exchanged between parties. At this point your deposit is payable. The completion of the sale, usually takes place a few weeks after the exchange of contracts but your solicitor will confirm dates.
It is important to keep in touch with your solicitor throughout this period and advise them if your circumstances change.
Purchase Completion
When completion takes place, your new home legally belongs to you and the funds from your mortgage lender are transferred to the seller.
The keys will be yours as soon as the funds have transferred, and you can choose to move in any time after that.
The Home Move pack will be left inside your new home. It contains all the warranty details of appliances, operating manuals and other useful information. You will need to register your appliances with the manufacturer in order for the warranty to apply.