Information for Property Buyers
When you find the property you love, by all means put in an offer. However, unless you are in a position to proceed it may be best to express your intention to buy until such time as you have sold your own property.
Obviously this is a matter for you as an individual to decide. Our advice as an agent, however, would be to place your own home on the market with Green Abbey Estates and begin to “keep an eye on property” that meets your requirement so as to be ready to make the move when able.
To begin with this means you can obtain the best possible price for your property and it puts you in a much better bargaining position when you come to put in an offer on another house. Surprisingly, it can also play a major part in the choice of properties you are generally given by agents. In other words, your credibility as a buyer is enhanced by having entered the market place yourself.
At Green Abbey Estates we treat all our buyers with the same respect and courtesy. All prospective buyers will receive details of every property that meets their criteria irrespective of whether they have sold their home. However, as with any estate agent, we act primarily on behalf of our sellers and it is they, of course, who make the final decision but assured your buying experience with us will be an altogether more refreshing one.
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There are many more costs over and above the purchase price of the property involved with buying a property than there are in disposing of one. These are as follows:
Solicitor's fees
Did you know you can do your own conveyancing, but unless you know exactly what you’re doing, it is probably unwise. As a rough guide, expect to pay approximately £650 for each transaction ie sale and purchase. Green Abbey Estates understand that choosing and appointing a solicitor can be an added strain. We are therefore able to offer our clients advice as to fast, competitive and efficient conveyancing service. For further information please contact us.
Removal costs
We would recommend you choose a reputable company and get a competitive quote as soon as possible. Particularly, during the busy periods (usually the summer months) removal companies can be fully booked 8 – 10 weeks in advance.
Search fees
The cost can vary so please ask a member of our staff.
Mortgage lender’s legal costs
These are kept down if your solicitor also acts for your mortgage lender, which is more often the case; otherwise these are normally less than £200.
Stamp duty
This is payable on the total value of any property you buy. The level of taxation rises according to price thresholds. Given that stamp duty percentages and thresholds are subject to change at the time of a Budget, please ask any of our staff for confirmation of the current charges.
Extras
These can include the cost of buying new furniture or redecorating, storage, financial advisors’ fees, mortgage redemption fees, if applicable, and so on. Make a generous allowance for these.
Buying agents
We have established that the seller or the landlord has the opportunity to be serviced by an estate agent. The estate agent will do all they can to portray each property in the most favourable light and then negotiate the highest price for the seller – but what about help for the buyer? There are an increasing number of specialist buying agents who act for buyers in locating and negotiating property. These independent companies have no conflicts of interest with the regular estate agent and are usually paid by the buyer on a fixed fee basis. They often advise that as they are helping you to get a better price, then their fees are a saving to you, not a cost. An estate agent will also know that they buyer is serious if they come through a buying agent, which may help speed up the process.
You may be interested in PROPERT FIND our own niche market buying service. If you would like someone to take the sometimes complicated and time consuming, buying process out of your hands, or you are searching for property in an area you don’t know well. Please contact us for further information.
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Freehold
A freehold gives the buyer complete ownership of the land and buildings upon it. Freeholders can therefore do what they like with their property and land, subject to general law (particularly planning control) and to the lawful rights of others.
Leasehold
A leasehold property is one where the property has been leased from the freeholder for a specified period of time. The lease sets out the terms and conditions for the leaseholder, and repairs etc become the responsibility of the leaseholder.
Residential leases can either be short term (typically six months or one year) or long term. A long term lease can extend as long as 999 years. The length of the lease will affect the value of a property. If it is a short lease or anything much less than 60 years, this may be reflected in the price. This means that some short term leases can be seen as very good value.
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Gazumping is still an unfortunate fact of life, especially in a sellers’ market. This happens when the seller accepts a higher offer after agreeing to sell the property to someone else. The original buyer stands to lose more than the property they had set their heart on. They may well have paid for surveys and might also have incurred solicitor’s costs, none of which will be refundable. If you pay the Asking Price you dramatically diminish the likelihood of the occurrence of gazumping.
An estate agent has a duty by law to inform the seller of all offers made on their property. Therefore a reputable agent will forward all offers to their client even if these are made after an offer has been accepted. It is very much the seller’s decision as to whether an offer is considered or not. An estate agent can legally give guidance but can never recommend. When an offer has been accepted a seller must decide whether to remove the property from their register. Some sellers prefer to keep their property on the market until exchange of contracts so that should the transaction fall through, there may have a back up buyer.
Gazundering occurs when, at the last minute, the buyer refuses to go ahead with the sale unless the price is reduced. Again, there is nothing the seller can do about this apart from negotiate on the price or lose the sale – and possibly the house they are in the process of purchasing, too.
In such situations any estate agent worth their salt will do their best to negotiate on the sellers behalf, or failing that, will attempt to find you a suitable new buyer with all possible haste. Fortunately, it is rare to come across gazundering but in a recessionary housing market it is more likely to occur as prices may be falling.
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A good solicitor will do a great deal for their fees. For instance, they will retrieve title deeds and establish land registry registration to ensure the person you are buying from actually does have ownership. They will draw up the contract, negotiate on your behalf with the other parties’ solicitors, undertake searches NB searches may be provided in the vendors Home Information Pack, handle related financial matters and generally make sure everything is clear and above board.
But how do you go about finding the best person to do the job?
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Personal recommendation is one route. People are more than happy to pass on the name of a legal advisor they used and were pleased with. Remember you do not have to use a local conveyancer. As the whole process can be done over the phone and by post you are not limited to choosing someone in your area. However, local knowledge is an invaluable asset.
Asking your estate agent for a recommendation is the best way forward. Given that they have daily contact with solicitors they can be the best source of information. Depending o your preference we can supply details of reputable “on line” companies or more traditional local high street companies – just ask
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Your solicitor will carry out local searches on your behalf to make sure that the property you are planning to buy does not have, for example, a road planned at the bottom of your garden or any compulsory purchase orders attached to it.
This is usually done by a search of the local land register. Your solicitor will send a standard form to the local authority who will enter details of any local land charge adjacent to the property you are buying.
You can speed up the process by arranging a personal search. You pay a fee, whereby a search agent, appointed by your solicitor, calls at the offices of the local authority and the search is conducted there and then. This is not an official search, so will not protect you to the same degree, but if speed is of the essence, it can save weeks.
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- Planning notices
- Conditional planning permissions
- Compulsory purchase orders
- Tree preservation orders
- Whether the property is a listed building or in a conversation area etc.
- Financial charges relating to work undertaken by the local authority such as road works or repairs to dangerous buildings
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Local searches are by no means exhaustive, so your solicitor will make other enquiries with the local authority. These will include, for example:
- Proposed roadworks within 200 metres of the property
- Possible diversion or closure or roads or footpaths
- Noise abatement orders
- Sewers and drainage
- Proceedings relating to any infringement of building regulations
Depending on the location of the property, other searches may be required, such as the proposed development of adjacent land, or whether the property is in a mining area or has any adverse rights of way.
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There are various types of report which you can choose to have carried out on the property you intend to buy.
Valuation and mortgage reports
If you need a mortgage to buy your new property, even if it makes up just a small part of the purchase price, your lender will insist on a surveyor’s valuation of the property before agreeing to provide the mortgage. The fee will be dependent upon the purchase price although some lenders have set scale fees.
A valuation is not a survey – it is a property inspection undertaken, usually on behalf of the lender, for the sole purpose of deciding on the amount and terms of any loan. The extent of the inspection is very limited when compared to a survey. A potential buyer should therefore consider relying solely on the information provided by a mortgage valuation when deciding whether or not to purchase. Unless, perhaps the property offers a warranty provided by NHBC, Zurich or an Architects Certificate in the case of “one off” properties.
Valuations can also be provided to individuals on acquisition for peace of mind. Ask for a recommendation as to the surveyor you should be appointing.
Adverse valuation
In certain instances the valuation figure may not equal the purchase price. This may be due to a number of factors, including the condition of the property and whether it is unusual or unique. If you recognise that you are already paying a premium for the property, this may be reflected in a differential between the purchase price and a valuation price.
Surveys
A chartered surveyor can provide a professional opinion of the property under consideration. Where defects are discovered, it is sometimes possible to renegotiate the purchase price to reflect works required. There are two types of survey:
- Homebuyer's survey and valuation (homebuyer’s report)
- Building survey
Homebuyer's report
It is intended for use on conventional types of property and focuses on the significant defects and problems which have an affect on the value of the property. It will also confirm whether a property is in reasonable condition. Comment is limited to those areas which are accessible at inspection.
To save time and money you maybe able to ask the surveyor who carries out the mortgage valuation report to also undertake a homebuyer’s report.
Building survey
This is more comprehensive than a Homebuyer’s report and provides extensive information on construction and materials used as well as both major and minor defects. Costs are dependent upon the size and nature of the property.
In certain instances, where significant defects are identified, the surveyor may recommend further investigation by an engineer or other technician.
Once the likely cost of repairs can be ascertained, there may be grounds to renegotiate the purchase price should these costs be considerable, unless of course the property’s condition has been reflected in the asking price.
Where a mortgage is required, the lender may hold back certain monies in the form of a retention until such remedial works have been carried out.
Building surveys do not automatically include valuations.
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This often leads to difficulties between buyer and seller, given that the prospect of price renegotiation is always an emotive one. If the property was not priced to take into account of any defects, a rational approach is by far the best way forward. Quotations for the remedial works should be obtained. Verbal exchanges by telephone or letter rarely lead to a satisfactory outcome in these circumstances because of the personal nature of the transaction involved. Therefore a meeting between the estate agent and other parties often achieves the desired result.
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The Royal Institution of Chartered Surveyors can help you here by providing the contact details of registered surveyors in your area. Their number is 020 7222 7000. Your estate agent can help too and will be able to pass on the contact details of the best local firms.