THE SUTCLIFFE REED GUIDE TO BUYING A HOME
Telephone 01772 828382

WHAT HAPPENS NEXT?

The Seller's Solicitor will be in touch with us providing us with certain information and a draft contract which we need to look at. The following Searches need to be carried out on you behalf: -

Local Authority Search

We need to make enquiries of the Local Authority in relation to your new property. We need to ask them all sorts of different questions. For example, your dream house may not be exactly what you wanted if a motorway is about to be built next door! Depending on the area, the typical fee charged by the Local Authority is £100.

Land Registry Search

Basically we need to check that the Seller has got the right to sell you the property. We also want to make sure that, for example, there is a right of access to the property and there is not a public footpath going through your lounge! The sellers' Solicitor will send us documentation from the Land Registry in this regard.

Bankruptcy Search

If you are obtaining a mortgage, we need to carry out a Bankruptcy Search as we will be asked to do this by your lender. These cost £1 per person.

Exchange of Contracts

Once all the searches have been carried out and we are both satisfied that the transaction is to go ahead, we need to "Exchange Contracts". At this point a binding legal agreement comes into existence and a date is agreed when you can move in. It is only after exchange has taken place that a binding legal agreement exists and neither party can withdraw without incurring liability for breach of contract.

Typically, on exchange of Contracts, you would expect to pay a deposit of 10% of the purchase price. Frequently these days, only 5% of the purchase price needs to be paid at this stage and we will advise you of this at the appropriate time in any event.

Post Contract Stage

A number of procedural queries relating to the mechanics of completion itself are carried out. For example, you need to know precisely how much money is required from you to complete the transaction. We need to find out who holds the keys to the property and when you are getting them. Your lender needs to be certain that the property has good title and various documents need to be drawn up to put the mortgage into effect. For example, we will need you to sign a mortgage deed and we will have to certify to the lender that the legal title to the property is in order. We need to make sure that your lender will be putting us in funds to complete the transaction. We need to carry out an up to date check with the Land Registry to make sure nothing has changed and to give you "priority" when the house is registered in your name. The Land Registry fee is £4.

Completion

These days, money is invariably transferred electronically between various bank accounts. We will arrange for the purchase monies to be transferred to the Seller's Solicitor and once we are notified that the monies have arrived, you will be able to collect the keys and move into your house. The Seller's Solicitor will then send us the deeds to your new home. The bank will charge a fee for the electronic transfer of funds which will be £23.50.

Post completion

Whilst you are still unloading boxes and unpacking, our job is not finished. We need to give details of the transaction to the Inland Revenue. If the purchase price of the new home was over £60,000, of if it is "Leasehold" we have to make sure that the Stamp Duty is paid. Stamp Duty is charged by the inland revenue at 1% of the purchase price between £60,000 and £250,000 and 2 1/2 % of the purchase price between £250,000 and £500,000. For leasehold properties , the stamp duty payable will depend on the terms of the lease. We will of course advise you accordingly.

After all these formalities have been completed, we have to apply to the Land Registry for your title to be registered. Land Registry fees are on a sliding scale depending on the purchase price of your property. For example the fee for registering an £80,000 property is currently £100.

Eventually the Land Registry will return to us formal documentation in this regard. Once we are satisfied that the details are correct, if you have a mortgage, we we have to send the Title Deeds to your lender, if you have no mortgage we will ask you what you would like us to do with the documents which need to be kept in a safe place. We will be happy to store these free of charge in your on your behalf.

Throughout every step of the transaction, we will keep you informed and let you know if any complications arise.

Some common difficulties which can lead to delays are:-