Buying a Property

Things one should think about when buying a property

At Ashley Charles we endeavour to conduct ourselves professionally, with total accountability, to not 'pass the buck' and to run our business honestly and with the highest degree of integrity. Our philosophy is:

REMEMBER US; RECOMMEND US, RETURN TO US

Why will you remember us? Why will you recommend us? Why will you return to us? We hope that you will remember us for the exceptional level of service that we have given you, through each stage of your house purchase. We hope that you will recommend us because we have made buying your home as uncomplicated and stress-free as possible. We hope that you will return to us because you value these qualities as much as we do.

At Ashley Charles we really do appreciate that buying and selling a property is one of the most stressful processes that we will put ourselves through. All our staff are focused on not just finding you a property to buy, but more importantly on the whole process from start to finish - from the moment you first view a property to the moment when we hand you the keys to your new home. Why? Because the purchaser of today is the vendor of tomorrow. That's why we want you to remember us, recommend us, and return to us.

Please find below some useful tips. The real key to a stress-free process is get organised before you start...

WHAT PART DO ASHLEY CHARLES PLAY

The estate agent acts for the vendor. Why? The estate agent is paid for his services by the vendor not by the purchaser. But at Ashley Charles we recognise that the purchaser is as important to us as the vendor. To be honest, without you we can't sell the vendors property and get paid. We are here to help both sides reach a stress free happy conclusion to the sale and purchase of the home in question. Always bear in mind however that it is the vendors home not the estate agents.

THE PROCESS INVOLVED IN BUYING A PROPERTY

Decide on your budget

  • The first thing you should do is work out what your budget is. Visit a mortgage broker, your bank or building society (this should be a free service). Most honest brokers will try and charge but if you say no, will do it for free. (They will get paid from the lender). Once you have found a lender get your broker to get an offer in principle.
  • Fill out and sign the forms so you are ready to go as soon as you have found your new home. Get organised. Should you require help with a mortgage broker, Ashley Charles can make recommendations.
  • Work out what your deposit will be. Your solicitor or broker will tell you what the percentage is, depending on what lending package you have chosen - it is usually 10%. (It is at this point I have personally found that sending flowers, or phoning and visiting more regularly, becomes very advantageous when pleading poverty and help from friends and family!)

What costs should you consider

  • Solicitors fees (including stamp duty, local authority searches etc)
  • Residential property - purchase price Rate of Stamp Duty Land Tax
       Up to £175,000 (until 2nd September 2009 inclusive): 0%
       £175,001 - £250,000: 1%
       £250,001 - £500,000: 3%
       £500,001 or more: 4%
  • Deposit - usually 10% of the asking price
  • Surveyors fees
  • Mortgage (arrangement fees, these usually can be added to the mortgage)
  • Building and house contents insurance (shop around, prices vary dramatically in some cases
  • Removal costs
  • In some cases there can be part-payments on council tax, ground rents and service charge

Appoint a solicitor

  • Do this before you start searching for a new home. Most vendors want a quick sale. If you find one before you start it won't delay you once you have found a property and need to get your survey done.
  • Establish your solicitor's costs up front. It is essential that the solicitor is geared to handling residential sales, can be readily contacted and can deal with your work quickly. The cheapest may not be the one who looks after your interests the most.
  • Ask friends and family if they can recommend one that they were happy with.

Register with estate agents

  • Register with all the agents in the area you are interested in and discuss the home you are looking for: style, size and budget etc. Some will offer you great service and others won't. Don't be intimidated by them.
  • Make your selection and arrange a viewing. Remember to book early as everyone wants to view on a Saturday
  • Ask friends and family if they can recommend one that they were happy with.

Making an offer

If you are a property virgin don't be shy. As my mother used to say "If you don't ask you don't get" Make an initial offer of around 10% below the asking price. Then what we call the game of ping-pong starts. Be prepared to go upwards you may meet in the middle. However in a market where the demand is high, properties usually go for the asking price.

Gazumping

At Ashley Charles we do not entertain gazumping. As far as we are concerned once your offer has been accepted, the property is taken off the market in your favour. What we ask in return is:
  1. By 12pm the next day, Email or fax your details to us. The details being:
    • The purchaser's name and address, home, work, mobile contact numbers.
    • Your solicitor's company name, address, the name of the person who is dealing with your sale, telephone number, fax number and DX number.
    • The name of your lender/building society etc. Your brokers name address and contact numbers (if applicable)
  2. Within a week of your offer being accepted. Have your survey booked. It doesn't have to be done with in a week - just booked. What ever your broker, lender says, we know that if you are organised before you start looking you can have your survey booked within 48hrs and done within a week. So a week to have it just booked is very reasonable.
Please be aware although Ashley Charles doesn't entertain gazumping we cannot control the vendor. They can increase or decrease at their discretion. However Ashley Charles will not undertake to market a property on behalf of a vendor unless the asking price is realistic or if the vendor's actions will harm the honesty and integrity of Ashley Charles.

Decide on which type of Survey

Once your offer has been accepted the mortgage company will carry out their valuation on the property. However, you can choose from three types of survey; a mortgage valuation, a home-buyers survey or a full survey:
  • Mortgage Valuation is carried out by the mortgage company to assess whether they are prepared to lend you money to buy the property. It is a brief report on the property, they can often lower the valuation by 15% of the asking price, this is because they are always more cautious, after all its their money that's buying the property.
  • Home-buyers survey - this type of survey is made available by the Royal Institution of Chartered Surveyors in the 1980s to bridge the gap between the basic mortgage valuation and a full structural survey. It is a more detailed report on the condition of the property.
  • Full Structural or Building Survey Report - this is a very detailed report, it goes a few steps further than a home-buyers report and is recommended for a property that is particularly old.
The results of your survey may highlight problems with the property that require specialist quotes to be carried out, i.e. damp etc. This may lead to a price renegotiation. This can get fraught at times - we at Ashley Charles will always work and use our expertise to reach a mutually beneficial result.

What happens next?

Once your offer has been accepted the mortgage company will carry out their valuation on the property. However, you can choose from three types of survey; a mortgage valuation, a home-buyers survey or a full survey:
  1. The vendor's solicitor supplies a draft contract and title deeds on the property to your solicitor.
  2. Your solicitor arranges for local searches and raises any queries with the vendor's solicitor re the contract or title deeds. Once your solicitor is satisfied you then proceed to signing of contracts and agreeing a completion date.
  3. You provide your solicitor with the deposit, in the form of either bankers draft, building society cheque or cash.
  4. Signed contracts are sent to your solicitor from the vendor.

Things to arrange at exchange of contracts

  • Arrange a removal company
    The British Association of Removers can give you a list of approved removal firms. The association inspects and vets these firms. As prices can vary, we recommend that you obtain three quotes and of course ask friends or family if they can recommend a removal company. The British Association of Removers telephone number is 020 8861 3331.
  • Arrange buildings insurance
    Building insurance must be arranged from the date of exchange. Again, shop around for quotes, as they do vary greatly from company to company.
  • Contact service providers
    Make sure you notify the gas, electricity, water companies and council of the date that you move into the property.
  • Completion takes place on the agreed date. Your solicitor will pay the remainder of the purchase price to the vendor's solicitor, once the monies have reached the vendors solicitor. (This can take all day despite the fact that your solicitor's may have sent the monies first thing in the morning), the vendor's solicitor confirms that the sale is complete.
  • Congratulations, you've just bought your home!

Buying with a friend or partner

Please find below some helpful advice provided by a councillor from Relate

More and more young couples are choosing to invest in a joint property rather than savings or spending on a dream wedding. It's a sensible idea with house prices remaining so high, but buying a home together is an enormous financial decision.

Money is the source of serious arguments that can lead to relationship breakdowns. So sitting down and agreeing how you are going to pay the everyday bills and whether a joint bank account will make this easier is essential.

It is important to remember that there is no such thing as a common law wife or husband. In the absence of any other legal agreements, if you're not married the law sees you as two distinct individuals with no call on each other's money - so if the joint credit card, gas or phone bill is in your name, then the responsibility lies with you to pay the bills.

One solution is to draw up a co-habitation agreement before you move in, so who contributes to what and who is responsible for which bills can be set out from the beginning.

It should also cover what happens if you split up, one of you is made redundant or if the price of your property suddenly plummets.

Balancing spending time together with having time and space to yourself is key to the success of a happy and healthy relationship.

At any time if you are in doubt, need advice or help, please do not hesitate to contact Ashley Charles to help you.