05 February 2025
Having a clear grasp of where you are in the process and what remains to be done will give you peace of mind. Below is a legal "To Do" list to guide you from start to finish as you purchase your dream home.
1. Budgeting and Mortgage Pre-approval
Before embarking on your house-hunting journey, it's essential to ensure that your finances are in order. This two-part process begins with budgeting for the upfront costs, including the deposit, legal fees, searches, stamp duty, and Land Registry fees.
Equally important is securing mortgage pre-approval. Meet with your lender or mortgage adviser to confirm that they are willing to lend you the necessary amount, subject to you providing the required documentation to support your application. It’s crucial to have this in place before making an offer on a property.
Additionally, it’s wise to budget for any repairs or renovations that might be needed once you purchase the home.
2. Making an Offer
Once you’ve found a property that meets your needs, it’s time to make an offer. The offer you submit should be competitive enough to entice the seller to accept it, but also in line with the market value of the property.
Once your offer is accepted, ensure that the estate agent removes the property from the market to avoid the possibility of being gazumped (where a higher offer is accepted by the seller after you’ve made an agreement).
3. Appoint a Conveyancing Solicitor
Now that your offer has been accepted, it’s time to appoint a conveyancing solicitor to guide you through the legal process. Your solicitor will explain the steps involved and provide you with an estimate of the costs associated with the purchase.
They will also ask for identification and proof of the source of your funds, a regulatory requirement for solicitors. If a relative is assisting with your deposit, they will also need to provide their proof of identity and source of funds.
4. The Importance of Searches
Your solicitor will order various property searches to ensure that there are no hidden surprises. These typically include:
These searches help uncover any potential issues that might affect the value or habitability of the property.
5. Reviewing the Contract
As the transaction progresses, your solicitor will review the contract of sale. This includes confirming that the seller has clear title to the property and is legally able to sell it. They will also check for any restrictions, covenants, or outstanding issues with the property.
Additionally, your solicitor will verify that all planning permissions and building regulations are in order.
6. Arranging a Survey
Before you finalise the contract, it’s essential to arrange a property survey. This step helps to evaluate the condition of the property and identify any significant issues that could affect its value or require costly repairs.
There are three main types of surveys:
7. Organising Buildings Insurance
Once contracts are exchanged, you will become legally responsible for the property, and it's essential to arrange buildings insurance to cover the property against potential damage. Your insurance should take effect from the date of exchange.
8. Reviewing, Signing, and Exchanging Contracts
Once all the details have been confirmed, your solicitor will review the terms of the contract with you and explain your obligations. You will then sign the contract, after which it will be exchanged with the seller’s solicitor.
At this stage, you will also pay a deposit, typically between 5% and 10% of the purchase price. This marks the start of the binding agreement between you and the seller. You will also agree on a completion date, which is when you will take possession of the property.
9. Preparing for Completion
In the lead-up to completion, your solicitor will coordinate with your lender to draw down the mortgage and prepare the necessary funds for the transaction. You will receive a completion statement detailing the various costs and expenses involved in the purchase.
Before the completion date, you must pay this statement to ensure the process can move forward.
10. Completion
On the completion day, your solicitor will pay the remaining balance of the property price to the seller’s solicitor. Once the funds are received, the keys to the property will be handed over to you.
11. Post-Completion
After the completion of the sale, your solicitor will pay the stamp duty on your behalf, and they will register your ownership with the Land Registry. Your solicitor will also notify relevant parties, such as the freeholder or management company, about the change of ownership.
Your Legal "To Do" List is Complete
With all the legal steps completed, you are now the proud owner of your new home. The property will be registered in your name, and you’ll be free to settle in and enjoy your new place. The legal process has been finalised, and it’s time to relax—until the next time you need to buy or sell!
Conclusion
Buying a house involves many steps, and the legal process can seem daunting. However, following this legal "To Do" list can help you stay organised, reduce stress, and ensure that every step of the transaction is handled properly. With the right legal guidance, you can successfully navigate the home-buying process and move into your new home with confidence.
Buying a home is one of the most important financial transactions for anyone. We understand how stressful moving house can be. We are right by your side every step of the way. Our experienced lawyers will guide you throughout the process. We will contact your estate agent, mortgage broker and surveyor if you require. Contact us now for more information.
