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How to Purchase a Home

Homehunting in a new area can be a frustrating and exhausting experience.  The aim of this section is to save you time and energy by giving you an overview of popular London areas, and to outline how to go about looking for a property in the locality.  A useful guide to property hunting locations has also been prepared with the assistance of local estate agents in London and its surrounding suburbs.

Where to Look for a New Home

There are three main sources of information about property for sale, estate agents, newspapers and developers and builders.

Estate Agents

London is extremely well served by local independent estate agents as well as the large ‘chain’ estate agents.  Once you have decided on the general area in which you would like to find a home, you should contact various estate agents and brief them on your specific requirements.  They hold schedules of particulars of all the properties they are handling and will arrange appointments to view and will show prospective purchasers around suitable properties.  There is no charge to the purchaser.  If you purchase a property through an estate agent it is normal to engage a solicitor to carry out the conveyancing. Estate agents usually have links to mortage brokers, however for expatriate mortgages a more focused service may be required.

Newspapers

Local newspapers are an invaluable source of information about properties for sale.  The London area is served by a wide range of local newspapers, weekly and daily, paid for and free.  Some papers cover the entire city, these include Loot and the Evening Standard. 

New Property

If you decide to purchase a new property you can contact the developer or builder direct for details of the properties available or under construction.  Most developers have sales offices on site and some will have show houses which are available to view at set times throughout the week.  The procedure for purchasing a new house is explained later in this section.

How to Buy a Property

From 1st August 2007 it will be mandatory to have a Home Information Pack (HIP) before you put your home on the market. This pack must contain a sale statement, evidence of title, evidence that other key legal documents have been commissioned and an Energy Performance Certificate which outlines how energy efficient your home is.

It is normal to engage a solicitor to handle your conveyancing.  He or she will approve the draft contract which states price, terms and conditions relating to the transaction, undertake the Local Authority search, and check details of freehold or leasehold title.  They will ensure a satisfactory mortgage offer has been issued, obtains the client’s signature to the contract, ensure the client’s purchaser is ready to exchange if there is a chain and agree a completion date.

Valuations & Surveys

A private report or valuation for your own purposes can be arranged with an independent valuer.  A structural survey and valuation for mortgage purposes must be arranged with the agreement of the mortgage lender who will specify their approved valuers.

Exchange of Contracts

This takes place, often by telephone between the solicitors, when all parties in a chain are ready to sell and buy.  At this point all parties agree a moving date (completion date) which is added to the contract.  A deposit is required at exchange of Contracts which will normally be 5-10% of the purchase price of the property and is held by your own solicitor.  If there is any problem with your purchase of the property after this date, for example if your building society fails to provide you with your expected mortgage, the other parties in the chain of purchase could have a claim against your deposit for their costs.  After this stage it would be difficult to withdraw without incurring financial penalties.

Completion

Completion is the final stage, when keys and money are handed over.  It usually takes place about two to four weeks after exchange of contracts, although it can be sooner if necessary.  It involves mostly administrative procedures such as mortgage documentation and transfer documentation.  Keys are usually left at the selling estate agents who will release them on instruction from the solicitor.  As from the date of completion you become liable for the insurance on the property and you should ensure that adequate cover is arranged.  After completion your solicitor will register the title and pay Stamp Duty where applicable on your behalf.

Buying a New House

Once the prospective purchaser has visited a site showhouse and decided to purchase, the normal procedure would be for a reservation to be granted on a specific property.  Assuming the decision is taken to proceed, the purchaser’s solicitor would request the standard form of contract from the developer and the procedure would continue as above.  It is worth noting that some developers, in an effort to make things easy for the purchaser, offer a fully self-contained system, with the company providing advice on a range of matters including financial and legal.  It is recommended however, that you retain your own solicitor to avoid any conflict of interest.

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