FAQs: Buying a property
You should apply for a mortgage agreement in principle (AIP) as early as possible, even before you begin the search for your new home. It's usually valid for 60-90 days, and it'll give you a realistic idea of what you'll be able to borrow, and what you can purchase. It's not a formal mortgage offer but shows the seller you're prepared, and when you make an offer there won't be any issues in getting your mortgage. You can often renew your AIP if it expires before you need it.
In addition to the purchase price of a property, you should also budget for:
• Stamp Duty Land Tax (SDT)
• Legal fees for your solicitor or conveyancer
• Surveyor's fees
• Your mortgage arrangement fees if you're buying with a mortgage
• Moving costs
• Refurbishment or decoration expenses if you want to do a bit of sprucing up!
• Stamp Duty Land Tax (SDT)
• Legal fees for your solicitor or conveyancer
• Surveyor's fees
• Your mortgage arrangement fees if you're buying with a mortgage
• Moving costs
• Refurbishment or decoration expenses if you want to do a bit of sprucing up!
Stamp Duty Land Tax (SDLT) is a tax paid on property purchases over a certain value. The rate varies depending on the property price and whether you're a first-time buyer. For the most current rates and thresholds, you can visit the UK Government's Stamp Duty page here.
This will vary depending on a number of factors, but on average, it takes about 8-12 weeks from having your offer accepted to completing your purchase. Things that can delay the process include getting your mortgage (make sure to get your AIP as soon as possible!), your survey, and the seller not having all required documents ready to pass to your solicitor during the legal process. If your purchase is part of a chain - either dependent on the sale of your current property or the seller purchasing another property, this can also affect your timeline.
Conveyancing is the legal process of transferring property ownership from the seller to the buyer. A solicitor or licensed conveyancer handles this process; checking the title, carrying out searches, and managing the exchange of contracts and completion.
You can choose to use a licenced conveyancer or a solicitor to handle the legal aspects of your property purchase, which include the preparation of contracts, conducting searches, managing funds and ensuring the legal transfer of ownership.
Where they differ is in their ability to handle complexity. A solicitor will be better equipped to handle more intricate legal issues, and will be a better choice if your transaction is likely to be complex or involve potential disputes or complications. Due to their expertise, solicitors will generally charge more for their services.
Where they differ is in their ability to handle complexity. A solicitor will be better equipped to handle more intricate legal issues, and will be a better choice if your transaction is likely to be complex or involve potential disputes or complications. Due to their expertise, solicitors will generally charge more for their services.
These are enquiries that your solicitor or conveyancer will make with public authorities to give you important information about the property you plan to buy. These include:
• Local Authority: checks for things like property ownership and boundaries, planning permissions, and building regulations consent if major works have been carried out.
• Water and Drainage: checks the water supply, main drainage of surface water, if drains and sewers are maintained by the water authority, and whether public sewers run through the boundary of the property.
• Environmental: checks for things like contamination an flood risk.
• Chancel: based on an ancient medieval law, these are still necessary for some properties in certain areas. These searches check whether the owners of a property (or land) are liable for church repairs.
• Local Authority: checks for things like property ownership and boundaries, planning permissions, and building regulations consent if major works have been carried out.
• Water and Drainage: checks the water supply, main drainage of surface water, if drains and sewers are maintained by the water authority, and whether public sewers run through the boundary of the property.
• Environmental: checks for things like contamination an flood risk.
• Chancel: based on an ancient medieval law, these are still necessary for some properties in certain areas. These searches check whether the owners of a property (or land) are liable for church repairs.
These are different types of property ownership, which differ in duration, level of control, responsibilities and costs.
Freehold: you own the property and the land that it's built on outright. You have full control and are responsible for maintenance and upkeep of both. In London this is more common with houses.
Leasehold: you own the property for a fixed term, but not the land that it's built on. The land is owned by a freeholder (landlord), and lease terms can range up to 999 years. Technically ownership of the property would revert to the freeholder if the lease expired, though in practice they rarely do. Leaseholders usually extend their lease when it dips below 100 years left. There is a cost to extending the leasehold, which tends to be higher the shorter the time left on the lease. This is buyers need to consider when looking at future costs of a property post-purchase.
Leaseholders are responsible for paying Ground Rent and Service Charges to the Freeholder. These properties may also come with restrictions; for example, requiring permission to make major alterations to the property. In London leaseholds are very common with flats.
Freehold: you own the property and the land that it's built on outright. You have full control and are responsible for maintenance and upkeep of both. In London this is more common with houses.
Leasehold: you own the property for a fixed term, but not the land that it's built on. The land is owned by a freeholder (landlord), and lease terms can range up to 999 years. Technically ownership of the property would revert to the freeholder if the lease expired, though in practice they rarely do. Leaseholders usually extend their lease when it dips below 100 years left. There is a cost to extending the leasehold, which tends to be higher the shorter the time left on the lease. This is buyers need to consider when looking at future costs of a property post-purchase.
Leaseholders are responsible for paying Ground Rent and Service Charges to the Freeholder. These properties may also come with restrictions; for example, requiring permission to make major alterations to the property. In London leaseholds are very common with flats.
These are the fees property owners pay to cover costs of maintaining and managing communal areas and services. These include cleaning, repairs, building and public liability insurance, property management fees, security, maintenance of any shared amenities, and contribution to a sinking fund - a reserve fund used for any major future repairs or improvements. Services charges are typically assessed annually, and are paid quarterly or annually.
Ground rent is a fee that a leaseholder pays to a freeholder as part of their lease agreement. The payment covers use of the land on which their property sits. The amount can be anywhere from a small fee of £50 per year up to several hundred pounds (particularly for newer developments). Ground rent can be fixed or subject to periodic review, and is often paid annually.
First, find out what council tax band your property falls within between A (lowest value) and H (highest value). You can search your property on the government website here.
Next, each council in London sets its own rates for each band, so head to your council's website where they'll post their rates for the current financial year. If you live alone, you're entitled to a 25% discount on your council tax bill, so make sure to apply for this on your council's website.
Next, each council in London sets its own rates for each band, so head to your council's website where they'll post their rates for the current financial year. If you live alone, you're entitled to a 25% discount on your council tax bill, so make sure to apply for this on your council's website.
