Property Frequently Asked Questions
Q: What will it cost me to move house?
A: Below are the expenses (disbursements) involved in a typical freehold sale at £200,000 and freehold purchase at £260,000 in the Brighton & Hove Area using on-line search facilities to ensure a speedy service. All prices include VAT where relevant. We will provide you with a written estimate of our costs and the expenses tailored to your own particular circumstances:
*Stamp duty is determined by the purchase price and the current limits are:
**Land Registry fees vary according to the price of the property.
Q: What is the procedure?
A: Most people want to sell their existing home and buy their new one at the same time. When you make an offer which is accepted on a property you wish to buy and you have accepted an offer on yours, both seller and buyer will instruct solicitors to prepare the contracts and carry out necessary searches. When the surveys on the properties and all necessary searches and enquiries have been made and mortgage offers obtained, your solicitor will advise you that are ready to 'exchange contracts' that is to enter into a binding contract. Up to this point you can pull out.. When we know that all other people in the 'chain' are ready to go, contracts are exchanged simultaneously. The purchaser, pays a deposit, usually 10%.
Once contracts have been exchanged, you are committed to the deal and will lose your deposit if you pull out of the proposed purchase and could be sued for compensation. In addition f you try to withdraw from your sale, you could be forced to complete the deal whether you want to or not.
Between exchange and 'completion', your solicitor will attend to the pre-completion searches and will ask your lender (if a mortgage is required) to send the money to enable you to complete, along with the preparation of the Transfer document.
On completion the balance of the purchase price is paid and will pass along the chain. All existing mortgages will be paid off and new mortgages completed.
Q: Do I need a survey? Does it need to be a full survey?
A: If you are obtaining a mortgage on the property that you are buying, your lender will want to ensure that their loan is secure and will almost certainly require a mortgage valuation, conducted through a survey, although not necessarily a full survey. However, it is always a good idea to have a full structural survey by a chartered building surveyor who should be able to warn you about any unforeseen problems with the property, e.g. roofing problems, damp problems, electrical problems.
Q: What is a Home Buyers' Report?
A: This is a survey which falls between a valuation and a full structural survey.
Q: How long will my purchase take?
A: This depends on whether you are involved in a long 'chain', or if one party in not in any hurry, for example if they are waiting for a house to be built. Building societies may differ in the speed with which mortgage offers are issued, and some parties in the chain may have difficulty in arranging their finance.
Q: What happens if I am not able to provide 10% of the purchase price to exchange contracts?
A: You should receive 10% of the purchase price from the person buying your house. You will only have to find the balance. Often it is possible to negotiate with the other party to accept what you have received as a deposit as a full deposit on the property that you are purchasing. In addition it is now common practice for 5% to be paid on exchange with a liability for the full 10% deposit if anything were to go wrong.
Q: Why do I have to give my solicitor evidence of my identity before buying a property?
A: Solicitors are required by the current money laundering regulations and by building societies to certify that we have checked the identity of our clients. In addition we have to complete various forms, particularly those relating to stamp duty and need to have this information.
Q: Can I get advice on costs insurance?
A: This is insurance which covers you against your legal fees and expenses if your transaction becomes abortive through no fault of your own. We can provide a quote for such a policy if you would like one.
A: Below are the expenses (disbursements) involved in a typical freehold sale at £200,000 and freehold purchase at £260,000 in the Brighton & Hove Area using on-line search facilities to ensure a speedy service. All prices include VAT where relevant. We will provide you with a written estimate of our costs and the expenses tailored to your own particular circumstances:
| Land Registry Office Copies Fee | £8.62 |
| Local Search Fee (approx) | £164.97 |
| Land Registry Priority Search Fee | £4.16 |
| Bankruptcy Search Fee (assuming 2 purchasers) | £6.12 |
| Environmental Search Fee (approx) | £29.38 |
| Water company search Fee (approx) | £45.00 |
| Stamp Duty Land Tax * | £7,800.00 |
| Land Registry Registration Fee** | £250.00 |
| Bank Charges (inc VAT) (per transfer) | £35.25 |
| Stamp Duty Land Transaction Form Production Fee (inc VAT) | £58.75 |
*Stamp duty is determined by the purchase price and the current limits are:
- Between £00 and £120,000. Stamp Duty Land Tax is paid at 0%
- Between £120,001 and £250,000 Stamp Duty Land Tax is paid at 1%
- Between £250,001 and £500,000 Stamp Duty Land Tax is paid at 3%
- For properties purchased over £500,000 Stamp Duty Land Tax is paid at 4%
**Land Registry fees vary according to the price of the property.
Q: What is the procedure?
A: Most people want to sell their existing home and buy their new one at the same time. When you make an offer which is accepted on a property you wish to buy and you have accepted an offer on yours, both seller and buyer will instruct solicitors to prepare the contracts and carry out necessary searches. When the surveys on the properties and all necessary searches and enquiries have been made and mortgage offers obtained, your solicitor will advise you that are ready to 'exchange contracts' that is to enter into a binding contract. Up to this point you can pull out.. When we know that all other people in the 'chain' are ready to go, contracts are exchanged simultaneously. The purchaser, pays a deposit, usually 10%.
Once contracts have been exchanged, you are committed to the deal and will lose your deposit if you pull out of the proposed purchase and could be sued for compensation. In addition f you try to withdraw from your sale, you could be forced to complete the deal whether you want to or not.
Between exchange and 'completion', your solicitor will attend to the pre-completion searches and will ask your lender (if a mortgage is required) to send the money to enable you to complete, along with the preparation of the Transfer document.
On completion the balance of the purchase price is paid and will pass along the chain. All existing mortgages will be paid off and new mortgages completed.
Q: Do I need a survey? Does it need to be a full survey?
A: If you are obtaining a mortgage on the property that you are buying, your lender will want to ensure that their loan is secure and will almost certainly require a mortgage valuation, conducted through a survey, although not necessarily a full survey. However, it is always a good idea to have a full structural survey by a chartered building surveyor who should be able to warn you about any unforeseen problems with the property, e.g. roofing problems, damp problems, electrical problems.
Q: What is a Home Buyers' Report?
A: This is a survey which falls between a valuation and a full structural survey.
Q: How long will my purchase take?
A: This depends on whether you are involved in a long 'chain', or if one party in not in any hurry, for example if they are waiting for a house to be built. Building societies may differ in the speed with which mortgage offers are issued, and some parties in the chain may have difficulty in arranging their finance.
Q: What happens if I am not able to provide 10% of the purchase price to exchange contracts?
A: You should receive 10% of the purchase price from the person buying your house. You will only have to find the balance. Often it is possible to negotiate with the other party to accept what you have received as a deposit as a full deposit on the property that you are purchasing. In addition it is now common practice for 5% to be paid on exchange with a liability for the full 10% deposit if anything were to go wrong.
Q: Why do I have to give my solicitor evidence of my identity before buying a property?
A: Solicitors are required by the current money laundering regulations and by building societies to certify that we have checked the identity of our clients. In addition we have to complete various forms, particularly those relating to stamp duty and need to have this information.
Q: Can I get advice on costs insurance?
A: This is insurance which covers you against your legal fees and expenses if your transaction becomes abortive through no fault of your own. We can provide a quote for such a policy if you would like one.