For most people buying their home is their single largest investment and it is essential that you have competent professional advice and assistance.

Things to consider:

• The best way of arranging your mortgage
• Whether the property should be in joint names
• The synchronisation with other people when buying or selling properties in a chain of transactions

Our job is to ensure that your interests are protected and that the agreements that you make are in your favour so far as can be achieved.

A Guide to Selling

1. Preparation of the Energy Performance Certificate (EPC)
All properties marketed for sale must have an EPC prepared. It is against the law to market a property for sale without one. We can arrange this for you.

2. Enquiry Forms to be completed
The seller has to complete a Property Information Form and a Fittings and Contents Form.

3. Deeds
As most properties are registered at the Land Registry title deeds are obtained by downloading documentation from the Land Registry. Some properties may not be registered and the deeds will have to be brought in to us or obtained from the mortgage lender if held by them.

4. Prepare Contract
Once the title deeds have been obtained and a buyer is found the Contract is prepared. This sets out the main terms of the transaction – seller’s and buyer’s names, a description of the property and the price agreed. This is sent to the buyer’s solicitors and the seller then has to wait until the buyer is ready to proceed.

5. Exchange of Contracts
Once the buyer and seller are ready to proceed a completion date is agreed and Contracts can be exchanged. Once Contracts are exchanged it is legally binding and neither party can withdraw without severe penalty.

6. Completion day
The balance of the sale price is paid to the buyer’s solicitors and they send the title deeds to the buyer’s solicitor. Any mortgage on the property sold is repaid and the estate agents’ fees and solicitors’ fees and any other sale expenses paid. Any money left over is then sent to you unless it is used to buy another property.

A Guide to Buying

1. Request an Energy Performance Certificate (EPC)
You may request a copy of this from the estate agents before making your decision to purchase.

2. Request mortgage offer
If required the buyer will apply for a mortgage and the mortgage lender will send a copy of the offer to the buyer’s solicitor.

3. Contract received and searches and enquiries raised
The seller’s solicitor sends the Contract, copy title deeds, Property Information Forms and Fittings & Contents Form to the buyer’s solicitor. The buyer’s solicitor will carry out the local authority and additional searches and raise any appropriate additional enquiries. Once the buyer’s solicitor has the results of all searches and enquiries and a copy of any mortgage offer, you will be asked to sign the Contract. If you are buying only, you will be asked to pay a deposit but if you are selling, in most cases the deposit paid on the sale is used.

4. Exchange of Contracts
Once the buyer and seller are ready to proceed, a completion date is agreed and Contracts can be exchanged. Once Contracts are exchanged it is legally binding and neither party can withdraw without severe penalties. At this time you should have arranged buildings insurance as the property will now be your risk.

5. Completion day
The remainder of the purchase price is paid to the seller’s solicitor and the title deeds are sent to the buyer’s solicitor. The keys to the property will usually be handed over to you through the estate agents once they have confirmation that the monies have been received.

6. Post completion
The buyer’s solicitor will pay the stamp duty (if applicable) and submit an application to register the buyer’s ownership of the property at the Land Registry.

Additional Useful Information

Stamp Duty

When you buy a property you have to pay stamp duty if the price is more than the statutory amount which is currently £125,000.00. The amount of stamp duty is paid on the whole amount of the purchase price – to find out the current rates, visit www.ashtongraham.co.uk/stampduty

Capital Gains Tax

Capital gains tax may be payable when you dispose of an asset for more than its original price. A person’s main residence is usually exempt but if you have more than one property; you run a business from home or let part of your property, a liability for capital gains tax may arise. You should discuss this with your accountant at the outset.

Buying jointly

If you buying a home with another person it may be a good idea to own the property jointly. There are two different sorts of joint ownership called Joint Tenancy and Tenants in Common.

With a joint tenancy the property automatically passes to the other owner on death and is the usual way for husbands and wives to own property. Under a tenancy in common each owner has a separate share in the property which will not pass to the other owners automatically. Instead it will pass in accordance with the terms of the deceased’s Will. This type of ownership is common for example where a brother and sister buy a property together or where buyers are paying the price in unequal shares, as part of a tax planning exercise or where there are children from a former relationship for whom you
would wish to provide.

FREQUENTLY ASKED QUESTIONS

What is Conveyancing?

Conveyancing is the word used for managing the legal formalities of buying and selling a house.

How long will it take?

If there is no chain, the property is empty, the buyer does not require a mortgage and if:

1. Draft documentation is received promptly by the buyer’s solicitor.
2. Monies are readily available.
3. There are no enquiries to raise.
A sale and purchase can be completed very swiftly.

It is however more likely that a mortgage will be required and there will be a chain of transactions. If this is the case, it will usually take four to six weeks to exchange of contracts and another two to four weeks between exchange of contracts and completion making a total of six to ten weeks from start to finish.

We always try to progress your transaction as quickly as possible but we cannot offer any guarantee about the time it will take and you should not believe anyone else that says they can! In a chain transaction we can only deal with things as quickly as the slowest person in the chain.


What things can slow everything down?

The conveyancing process often runs quite smoothly but occasionally there can be a problem and the most common things to arise are:

1. Incomplete documentation received from the seller’s solicitor.
2. Queries arising relating to the lack of planning permission/building regulations approval.
3. Additional matters to be dealt with as a consequence of conditions in the mortgage offer.
4. Incomplete chain.
5. Other parties in the chain aiming for different completion dates.
6. Issues arising out of the use of rights of way.
7. The need to enquire as to breach or possible breach of restrictive covenants (legally enforceable promises imposed on the property).

How soon do I need to pay any money?

If you are purchasing a property your solicitor will ask you for approximately £300.00 at the commencement of the transaction to cover the search fees and a 10% deposit will be payable one week prior to exchange of contracts. If you are obtaining a mortgage for more than 90% of the purchase price it may be possible to negotiate a reduced deposit. The balance of the purchase price and solicitors costs including stamp duty and Land Registry fees will be payable one week before completion.

If you are just selling you will need to pay either your solicitor or the estate agent for the preparation of the EPC. The legal costs and estate agents’ fees will be paid out of the proceeds of sale on completion before any balance is sent to you.

Do I need a survey?

If you are obtaining a mortgage a valuer will inspect the property on behalf of the lender. Although his report will give you an indication as to whether he thinks the property is worth the amount that you have asked to borrow you will probably not be able to rely on it.

For an extra fee you can usually arrange for the same valuer to carry out a more detailed “Home Buyer’s Report”. This can be relied upon by you so if at a later date you find a problem that is not mentioned in the report you may have some redress against the valuer. This is not however a detailed survey report.

If the property is quite old and/or you are particularly concerned about its condition, you can obtain a full structural survey report which is even more detailed.

Always remember the golden rule is “Let the Buyer Beware” so (provided you have not been misled) you will be liable for any problems that you discover after exchange of contracts.

What searches do you carry out and why?

The buyer’s solicitor will decide which searches are necessary in any particular case but the main ones in any transaction are as follows:

Local Authority search

This reveals details of the planning history of the property and whether the Council is aware of any breaches of planning, any proposals for new roads or traffic schemes, Tree Preservation Orders, conservation areas or any other matters within the Council’s control that may affect the property. The search does not however reveal any planning permissions or applications for adjoining properties.

Drainage search

This will show whether or not the surface and/or foul water drains run into a public or private sewer and the route that they take.

Environmental search

This is carried out to see if there are any landfill or waste disposal sites in the area, or if the property has been built on an old industrial site and whether there are any risks from contaminated land, toxic emissions, flooding, subsidence etc.

Chancel Check

This search is carried out to see whether or not there is any potential liability to contribute towards the upkeep of the chancel of any medieval church in the vicinity.

Land Registry search

This is carried out just before completion in order to find out if there are any new mortgages registered against the property that have not previously been disclosed. If there are, then the buyer’s solicitor will obviously require confirmation that these will be repaid.

Land Charges search

If you are obtaining a mortgage the lender will ask your solicitor to carry out a search to make sure that you are not bankrupt! Quite often this search will show an entry against someone else with a similar name. If so, you will be asked to sign a copy of the result of the search to confirm that it does not relate to you.

Can I exchange Contracts before I receive my mortgage offer?

If for any reason the mortgage offer is declined or delayed or it contains any conditions that you cannot comply with the money will not be available for completion when required. It would therefore be extremely dangerous to exchange Contracts without receiving a mortgage offer and any competent solicitor would strongly advise you not to do so.

When do I need to arrange buildings insurance?

Unless the building insurance is being arranged by the lender or it is a leasehold property and the insurance is dealt with by the landlord, you must arrange buildings insurance from exchange of contracts as the property will be at you risk from that time.

The amount of cover should be the estimated cost of re-building the property if it burns to the ground and this is not necessarily the same as the current market value. If you have had a survey or you are obtaining a mortgage, your surveyor or the lenders valuer will usually have suggested a minimum amount of cover in their report.

What happens with the keys?

These are usually left with the estate agents (if any) and the buyer collects them once the money has been received by the seller’s solicitor on the day of completion. If there are no estate agents you will need to make arrangements directly with the seller with regard to the handing over of the keys.

Although your solicitor will always try to ensure that everything is finalised as early as possible on the day of completion - and usually this is dealt with by lunch time - there can sometimes be a delay if, for example, your solicitor is still waiting for the mortgage monies to arrive or there is a particularly long chain. Your solicitor however will be working for you to try to resolve matters as early as possible.

When will I get my money?

If you are just selling, or there is a surplus due back to you after completion of your sale and purchase, your solicitor will always try to send this to you on the day of completion or on the next working day.

Payment is usually made by cheque but for larger amounts your solicitor can transfer money direct to your bank for which there will be an additional fee payable. You should request this in advance and provide your solicitor with your account details.

Conveyancing transaction basic steps

Working Together

Expertise you can trust

Benefit from:

• Efficient, expert advice
• Ability to understand and acknowledge complex legal issues
• Friendly and approachable
• Well established firm

Conveyancing Solicitors - click here to read full information on our residential conveyancing services or contact us using the details below:

Bury St Edmunds:
Mark Beaton
T: 01284 762331
mark.beaton@ashtonkcj.co.uk

Ashton KCJ is authorised and regulated by the Financial Services Authority.
Ashton KCJ Solicitors is regulated by the Solicitors Regulation Authority No. 50075.

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