Frequently Asked Questions
How long will the Conveyance take?
It is impossible to say as each transaction is different but it normally takes 8 – 10 weeks from start to completion. The length of time it takes is dependant upon the chain of associated sales and purchases. If there are several transactions linked for which mortgages need to be obtained, weeks can pass with there seeming to be very little progress whereas, for a cash buyer purchasing an empty property, completion can take place relatively quickly.
Is it important to have a written mortgage offer?
A written mortgage offer is required before you can commit to purchasing a property by exchange of contracts. Any terms under which the offer is made, such as any work that needs to be carried out on the property, or life insurance requirements, must be satisfied before the funds will be released. The lenders, in addition to providing the conveyancer with details of the offer will provide them with the mortgage deed for signature by you.
When are legal fees paid?
Legal fees should be paid on the date of completion so that disbursements such as Land Registry Fees, Stamp Duty etc. can be paid. A completion statement will be sent to you showing the amount that should be forwarded in order to complete.
Can Legal Fees be added to the Mortgage?
Yes this is possible but you will have to arrange this directly with your Lender.
Is a deposit required?
Usually a deposit of 10% or less is paid as part payment of the purchase price to the Sellers conveyancer when contracts are exchanged. If you decide to withdraw from the transaction at any time between exchange and completion the seller is within their rights to keep any deposit paid. If you are getting a 100% mortgage you will not have a deposit available and the Sellers solicitors will have to confirm that this is acceptable prior to the exchange of contracts.
Does completion have to take place on a working day?
Because banks can only transfer money electronically on a weekday and the exchange money for vacant possession of the property is normally carried out on the same day, exchanging over the weekend is not possible. Completion can however take place on any other day through the week.
Who hands over the keys on completion?
Usually the Estate Agents or the Seller will hand over the keys. If you are purchasing the property you will be informed where the keys can be collected from, but they will only be made available when the money has been received by the Seller. If you are the Seller you will be informed when the money has come through and you may then hand them over in person or through your Agent.
Do I need building insurance?
It is advisable to make sure that you will be able to obtain building insurance on the property before contracts are exchanged. Once contracts have been exchanged the seller is no longer obliged to insure the property so you should make arrangements for building insurance from the date contracts exchange. Alternatively, your Lender may make arrangements on your behalf.
Can I sell property registered in my maiden name if I have since married?
Yes you can but you will need to provide a marriage certificate before the transaction can be completed. You may also wish to advise your Building Society by forwarding them a copy of your marriage certificate.
Is it possible to have a person added to the Deeds or Mortgage at a later stage?
Yes – you will first need to confirm with your Lender that they are happy to have that person added on to the mortgage. Subject to the mortgage, a legal document will then be drawn up transferring the property from the sole name into joint names. This transfer of legal title will need to be done even if you decide to remortgage with a different Lender.
Should I have a survey done?
If you are obtaining a mortgage your Lender will usually insist that a survey is carried out. It is always advisable to have a survey, especially on older properties, as it should reveal any work that needs doing which may be extensive and costly. There are different levels of survey but the older the property the more extensive the survey should be.
What is a Home Information Pack and do I need one?
The Home Information Pack (HIP) contains important information intended to assist the sale and purchase of property. It allows sellers to provide detailed information on the property upfront thereby reducing the likelihood of delays caused by unforeseen snags and saves buyers the unnecessary expense of searches and surveys if the sale falls through.
What is included in the Home Information Pack?
The HIP must contain the following:-
- Terms of Sale
- Evidence of Title
- Standard searches
- Planning Consents and Building Control Certificates
- Warranties and Guarantee
- Energy Performance Certificate (EPC)
Q. Why do I need a local Search?
A. A local Search is completed by the Local Authority who will provide us with information such as:-
Is the road adopted by the Local Authority
Are there any Planning Permissions or Building Regulations approvals registered.
Is the property affected by an Improvement Grant.
Are there any Notices or Orders registered against the property.
Are there any road or traffic proposals in the area which could affect the enjoyment of the
property etc.
If you are obtaining a mortgage then your Lender will require a Local Search to be carried out.
Q. Why do I need a drainage Search?
A. To check that the property is connected for foul and surface water and connected for mains water. To also check whether there are any public or private sewers which run through or under the property which could restrict further development.
Q. What is stamp duty disadvantage area?
A. Certain properties are exempt from stamp duty in certain areas up to the value of £150,000.00. We can check with the Inland Revenue to see whether the property you are purchasing falls within an exempt area whereupon no stamp duty will be payable if the price is £150,000.00 or less.
Q. How do I check about fixtures and fittings?
A. It is important that you know what is included or excluded in the sale price. It often causes great annoyance and trouble if items such as the curtains or wall lights are removed unexpectedly. The Seller will be asked to complete a Fixtures, Fittings and Contents List, but it is advisable to get together with the Seller, to discuss these matters in detail.
Q. Should I have a survey done?
A. The old saying is "let the Buyer beware" and this applies to a house purchase. If you move into the property and discover any problems it is very unlikely that you will be able to go back to the Seller and ask them to put it right. It can be costly if certain works need to be carried out what otherwise a survey would have revealed. If you are obtaining a mortgage then your Lender will insist that one is carried out or at least a valuation. It is not however advisable to rely upon the valuation report alone because the condition of the property is not considered in detail. It is however possible, for an extra fee, to arrange for your valuer to carry out a more detailed inspection called a "Home Buyers Report and Survey" or even a full Structural Survey, if the property is very old and needs extensive repairs or alterations.
Q. Why is a written mortgage offer so important?
A. Before we commit you to buy the property (by exchange of contracts which is the legal binding part) we need written confirmation that your Lender will provide the funds you require, and upon what terms. There are often many conditions in the written offer that need to be satisfied before the funds are released, such as work to be carried out to the property, or details of new life insurance policies being supplied. In addition at the time of being provided with the offer we will be provided with the mortgage deed for signature by you.
Q. What do I do about building insurance?
A. A property should be insured by you from exchange of contracts. The Seller is under no obligation to insure the property from exchange of contracts. Houses should be insured not necessarily for the price paid but for the estimated cost of rebuilding which will be estimated by your valuer and this will include the cost of rebuilding following a fire, to include cleaning away the damage and architect fees etc. Your Lender may arrange your insurance or alternatively you will need to make your own arrangements as quickly as possible and preferably you should ensure that you can obtain building insurance on the property before exchange of contracts.
Q. How long will it take?
A. It is impossible to guess but normally 6-8 weeks for a purchase but it all depends on how long the chain is and whether you require a mortgage and searches to be completed. It would be in your best interests to check now to see how many parties are linked to your transaction. If you are a cash Buyer and the property is empty then completion can take place a lot quicker but when a chain is involved and mortgages need to be obtained weeks can go by with apparently little progress being made.
Q. Is a deposit really necessary?
A. When contracts are exchanged a 10% or less deposit is normally paid to the Sellers Conveyancer as part payment of the purchase price. If you decide to pull out of the transaction between exchange and completion then the Seller has a right to keep whatever deposit you have paid. If less than 10% they may sue you for the balance up to 10% and then sell the property to someone else. A 5% deposit is normally acceptable in lieu of 10%. If you are obtaining a 100% mortgage then you will not have a deposit available and we will have to inform the Sellers Solicitors to provide confirmation that this is acceptable before exchange of contracts takes place.
Q. Why does completion have to take place on a working day?
A. When the purchase monies are paid over for the property to the Sellers Conveyancer, the Buyer and their Lender expect to get vacant possession of the property in return, on the same day. At present, the banks only transfer money electronically on a working day, and therefore completion cannot take place at a weekend. Please note however completion does not always have to take place on a Friday and can take place any day of the working week.
Q. When do we pay our legal fees?
A. We require the legal fees to be paid on the completion date as we will have to pay out a number of your disbursements such as the Stamp Duty and Land Registry Fees etc. We will however forward to you in time for completion a completion statement showing the amount we require from you to complete. You will then forward the balance to us in time for completion.
Q. Can the legal fees be added to the mortgage?
A. Yes but you will need to arrange this with your Lender direct.
Q. How do I sort out keys?
A. On the completion date we will endeavor to find where you can collect your keys. These will probably be with the Estate Agents or from the Sellers direct. If you are selling then you can hand them to the Buyer direct once we inform you we have received the purchase monies from the Buyers or you can hand them in to the Agents and we will release the keys with the Agents upon receipt of the purchase monies.
Q. If the property is registered in a person's maiden name, can that person sell using her married name?
A. Yes you need to provide a marriage certificate and the transaction can then be completed. You may wish to inform your Building Society direct by forwarding them a copy of your marriage certificate.
Q. Can a person be added to the Deeds and the mortgage at a later stage?
A. Yes but you will have to receive confirmation from your Lender that they are happy for that person to be placed on the mortgage and then a transfer of the legal title will need to take place. This is a legal document transferring the property from the sole name into joint names subject to the mortgage. You can alternatively remortgage with a different Lender but the Transfer will still have to be drawn up.
Q. If I am abroad how can I sign the contract and transfer if I have not granted a Power of Attorney?
A. Ideally if you are contemplating going abroad for an extended stay prior to the sale of the property you should arrange for a Power of Attorney to be executed. If a Power of Attorney has not been executed then we would require confirmation of identity from a professional person in that Country, eg doctor, lawyer or consular official. It would also be necessary for us to courier the contract and transfer documents to you for execution.