Do you feel overwhelmed by the prospect of purchasing your first ever home? At Hine Solicitors we understand that buying your first property is a major milestone in your life which can feel exciting, overwhelming and nerve-wracking at the same time.  Our CQS accredited conveyancing team prides itself in making the conveyancing process as straight-forward and as stress-free as possible for you.

With our empathetic and efficient approach, we’ll ensure you feel fully informed, confident and well supported throughout the entirety of the transaction.

Below are some key points you may wish to consider when preparing to buy your first home:

Instruct a conveyancing solicitor:

Having a solicitor in place early can speed up the process. Our key goal is to work towards exchanging and completing as soon as possible once all legal matters are resolved.

Our role includes:

• Reviewing draft contracts and title documents
• Raising enquiries
• Ordering property searches such as Environmental Search, Local Search, Water and Drainage Search and reporting to you on the results
• Reporting to you on the title, the contract, the documents from the seller’s solicitor and your mortgage offer
• Exchanging contracts and completing the purchase
• Dealing with post completion requirements, including the Land Registry application and submission of Stamp Duty Land Tax

 

Mortgage Agreement In Principle:

If you require a mortgage to finance the purchase it is wise to speak with a mortgage broker (or directly with a lender) and have a mortgage agreed in principle to avoid any issues which may arise with mortgage approval later down the line.

Proof of funds and ID checks:

Prepare to provide identification documents such as your passport and driving license together with proof of your address. We need to carry out source of funds checks too so will require bank statements and any additional evidence such as inheritance or gifts.

Having the documents ready will allow your solicitor to carry out checks as smoothly and promptly as possible.

Consider a survey:

Although this is not a legal requirement, we strongly recommend commissioning a survey. This can uncover structural issues which may arise and a surveyor can advise on any relevant issues or concerns which may influence your decision to proceed.

Deposit and additional costs:

The deposit on exchange of contracts is typically 10% of the purchase price and therefore should be readily accessible. Be sure to also budget for paying for extra costs such as solicitor fees, any post-completion fees, Stamp Duty Land Tax, Land Registry costs etc.

If you are considering purchasing your first property then rest assured our team of conveyancing professionals will be delighted to support you on your journey.

 

Clients often ask what is the difference between purchasing a freehold property and a leasehold property. There are a number of distinctions between the two.

If the title to the Property is freehold, it means that you own the Property outright, in perpetuity.

If the title to the Property is leasehold, this means that you have a lease from the freeholder to use the Property for a number of years. A lease is a contract with the freeholder and sets down the legal rights and responsibilities of either side. When a lease ends, the property usually reverts to the freeholder.

A lease determines the way a Property can be used and you will not have as much control with a leasehold property as you would a freehold property. For example, there may be restrictions on use, occupation, alterations etc. which are often actively enforced and may be subject to costs such as rent and service charge.

If you are a leaseholder and you do not comply with the terms of your lease, the freeholder will have certain rights to enforce the Lease. For example, the freeholder may be able to take you to court to require you to do something (such as repair the property) or stop you from doing something (such as causing a nuisance). In more extreme circumstances, the freeholder may be able to bring the Lease to an end and prevent you from continuing to occupy the Property. You may also be responsible for the freeholder’s legal costs and interest on any money you paid late.

Certain activities may be prohibited completely or may require the freeholder’s permission first, often by way of a written legal document. The Lease will usually require the leaseholder to pay any costs the freeholder incurs when they give this permission, for example, any surveyor’s fees or legal costs. As an example, a leaseholder may need the Landlord’s permission before building an extension to their property or to have pets.

Leasehold estates are a diminishing asset, in other words,  the property becomes less valuable as the number of years left on the lease term reduces.

While there is no specific rule regarding an acceptable lease term for potential buyers (and indeed their mortgage lenders), it is generally considered wise to make sure a lease has more than 80 years remaining in the term. This is because where a lease term drops below 80 years, the leasehold interest itself devalues significantly. As a result, the majority of lenders are not prepared to offer a mortgage if the lease term is due to expire in less than 80 years.

You may be entitled to act upon your statutory right to request for your lease to be extended. However, you will only be eligible to do so from two years after the completion of your purchase. Where the lease term is less than 80 years, the premium, price of which the landlord is entitled to ask for the extension increases significantly.

 

Please do not hesitate to contact our Property Solicitors should you have any questions in relation to freehold or leasehold property.