Buying Guide
So you’re thinking of moving? Whatever the reason and however you feel, Next Chapter’s job is to help you through this process. With years of experience in dealing with the buying and selling process we are often met with the same sorts of questions –
Where do I start?
What do I do next?
How long does it all take?
Our step by step guide is here to answer all of your questions and more…
Where do I start?
What do I do next?
How long does it all take?
Our step by step guide is here to answer all of your questions and more…
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Getting Finances in Place
Getting Finances in Place
When, or ideally before you start hunting for your perfect property, it’s worth making sure your finances are in place. Doing this puts you in the strongest negotiating position possible. If you have an agreement in principle (AIP) from the bank show this to one of our property experts to ensure you are one of the first to be told about new properties coming onto the market.
Next Chapter’s Tip: Don’t forget to budget for any renovations and removals, plus stamp duty – which is currently charged at the following rates;
STAMP DUTY CHANGES (22/11/2017)
First time buyers pay NO STAMP DUTY (0%) for a purchase of up to £300,000.
There are additional savings for First time buyers (ONLY) with a purchase price of between £300,001 to £500,000 with a 5% portion of Stamp Duty to be paid between those two figures.
If you are a first time buyer purchasing over £500,000, or you have purchased a home previously, then the following stamp duty rules still apply;
£0 – £125,000: -0%
£125,001 – £250,000: 2% portion
£250,001 – £925,000: 5% portion
£925,001 – £1,500,000: 10% portion
£1,500,001 +: 12% portion
To help you understand the portions, see some examples of stamp duty below. We have rounded up to the nearest pound.
Purchase price of;
£250,000 = £2,500
£300,000 = £5,000
£400,000 = £10,000
£500,000 = £15,000
£600,000 = £20,000
£1,000,000 = £43,750
£2,000,000 = £153,750
Try the stamp duty calculator here - http://www.hmrc.gov.uk/tools/sdlt/land-and-property.htm
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Viewings
Viewings
Finding a property with Next Chapter will be like having your own personal Estate Agent!
We want to know everything about your perfect home;
How much do you want to spend?
Do you need certain schools nearby?
Are there any particular roads that you really like?
How about a train station, do you need one closeby?
At Next Chapter we're upfront and honest, if you've requested that you do not want a property on a main road, then we won't surprise you by arranging a viewing for a property on a main road. We will however give you the choice from the start, allowing you to make an informed decision when arranging a viewing.
Each viewing should take between 15-20 minutes to give you enough time to have a good look around!
Should you have any questions about the local area or even some advice on good places to eat, we're here to help! -
Making An Offer
Making An Offer
Great, we’ve found you a property! Let’s talk about your situation and your offer.
It can sometimes be a pointless exercise putting an offer forward if you are not in a position to proceed, e.g. if your property is not on the market or you are on the market but have not yet found a buyer. By telling us about your circumstances, Next Chapter will be able to advise you honestly with your next steps.
Part of Next Chapter’s offer process is asking you how you intend to fund the purchase. Whether you require a mortgage or are buying cash, we will require proof of funds asking to see an agreement in principle (AIP) and proof of your deposit monies if you require a mortgage.
Every formal offer must be put forward to an owner by law and you will receive notification of your offer from Next Chapter, in writing.
Next Chapter’s Tip: Being in a position to proceed puts you in a stronger negotiating position.
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Sale Agreed
Sale Agreed
Congratulations! Your offer has been accepted!
You now need to instruct a solicitor (conveyancer) to deal with the legal paperwork for the purchase and sign up your mortgage with the bank, paying them to instruct a surveyor who will carry out a valuation of the property (some lenders may offer free surveys as part of your offer).
Next Chapter’s Tip: Sometimes paying a little extra for a reputable solicitor can help speed up and de-stress the buying process. Don’t skimp!
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Conveyancing
Conveyancing
So you’ve chosen your solicitor (We’re hoping you made note of Next Chapter’s previous TIP!)
Once your offer has been accepted, we will take the details of your chosen solicitor and the seller’s chosen solicitor, confirming details of the sale and sending what is called a ‘sales memorandum’ to all parties. The key to a stress free purchase (and sale) is communication! This just so happens to be Next Chapter’s forte!
Upon reciept of the sales memorandum, your solicitor will recieve what is called a 'draft contract' from the sellers solicitor and will request money from you to carry out 3 main 'searches'.
1. A local search
2. A water and drainage search
3. Environmental search
Depending on which council, a local search can take on average anywhere between 1-2 weeks, whilst the water and drainage and environmental searches can be back within a few days.
If you're selling, its a good idea to send your solicitor as much information about your property as you can. e.g. If your property has had an extension recently, send your solicitor any accompanying paper work, such as your completion certificate. The sooner you get this sort of information to your solicitor the better, allowing for a much quicker process.
Next Chapter will be in regular contact with you, the seller and both of your solicitors – not to mention the constant attention that we’ll be giving to any long and complicated chains. Offload any worries on to us!
Next Chapter’s Tip: An agreed offer to purchase is not legally binding until contracts have been exchanged.
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The Survey
The Survey
If you are buying a property with a mortgage, your chosen mortgage lender will instruct a surveyor. In most cases this is a cost incurred by you, make sure you decide on the right mortgage, sign up and pay for the survey as soon as possible. This will stop any delays in the buying process.
A survey of the property will be booked by the surveyor on behalf of the mortgage lender. The survey is carried out to make sure the purchase price of the property is correct, protecting the bank’s interest. The survey also highlights any major defects with the property that could negatively affect the security of the bank’s loan.
Next Chapter’s Tip: You usually have the choice of 3 types of surveys; a basic mortgage valuation, a home buyers report or a full building survey. The most common of these surveys tends to be a home buyer’s report.
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Mortgage Offer
Mortgage Offer
Once your mortgage lender has received the survey report and they are satisfied with the purchase price and the condition of the property, they will issue what is called a ‘mortgage offer.’ This is a written offer to lend money on the property and is sent to both you and your solicitor.
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Exchange of Contracts
Exchange of Contracts
You’ve made it!
This is the day the sale becomes legally binding on both sides. In most cases, especially if you’re at the bottom of the chain make sure to lodge your deposit monies with your solicitor as you can only exchange once the money has cleared into your solicitor’s account. Both buyer and seller must sign contracts and then agree on a completion date prior to exchanging contracts. In some cases you can arrange to exchange and complete simultaneously, however in most cases there is a generally a minimum of 5 days between exchange to completion.
Next Chapter’s Tip: Try and pay your deposit monies by telegraphic transfer. Cheques may take up to 5 days to clear delaying the exchange of contracts.
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Completion
Completion
Time to pick up the keys!
This is the moment you’ve been waiting for! Completion takes place once your solicitor and your mortgage lender transfer the outstanding balance to the seller’s solicitor. Only when Next Chapter receives a phone call or email from the seller’s solicitor confirming receipt of completion monies can we release the keys to you.
Telling you that we can release your keys is definitely our favourite part of our job!
Next Chapter’s Tip: There is no set timescales for the process of buying a property, however based on Next Chapter’s buying guide and tips, a property purchase based on a simple chain, a mortgage, using a reputable solicitor and a hardworking estate agent (Next Chapter!), should take on average between 6-8 weeks.
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Possible Delays
Possible Delays
So we’ve encountered a problem!
Not all property sales are going to be plain sailing so dealing with any issues quickly and efficiently will minimise delays. Typical issues that may arise are;- Problems with surveys
- Agreeing completion dates
- Complex chains
- Legal issues e.g. title deeds
- Solicitors
Next Chapter’s Tip: Don’t forget both buyers and sellers are within their right to change their mind at any point in the process.
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We Recommend
We Recommend
There are lots of good and bad companies out there, however at Next Chapter we only want to work with the best.
Contact us, for details of recommended solicitors, removals companies and mortage advisors.
Next Chapter - thinking of you, every step of the way.
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Download Checklist for Buyers
Download Checklist for Buyers
When you're buying a property, there's lots of things to think about! Next Chapter have designed a Buyer's Checklist to help you in the final stages of the process. We want to make sure you haven't missed anything!
Download Checklist
Next Chapter - thinking of you, every step of the way.