Moving Home

Frequently Asked Questions

FAQs by Buyers

How long does a typical transaction take?

The average conveyance takes between 6 to 8 weeks to complete from giving instructions to moving in. Being in a chain can slow things down, as the whole chain can only move as fast as the slowest link.

How much deposit will I have to pay and when?

Most contracts require 10% of the purchase price to be paid at exchange. In exceptional circumstances, a seller may accept less than 5%; however, the contract will normally require that the balance of a 10% deposit is paid if you do not complete the purchase on the completion date. We will need to have cleared funds by exchange, ie any cheques will need to have cleared before the deposit can be used. If you are also selling a property it is usual to use the deposit that is received on your sale as the deposit on your purchase, and to request that the seller accepts this even if it is less than 10%. When buying a new property from a developer, you may be required to pay a small reservation deposit.

What if I change my mind and no longer want to buy?

You can withdraw from the transaction at any time before exchange of contracts. You could lose any money spent on surveys and searches. After exchange of contracts both parties are legally obligated to complete the transaction.

What kind of survey should I have?

Please note that in relation to the purchase of property and its physical condition, the law is "Let the buyer beware". You must satisfy yourself by inspection and survey that the property is sound. This has to be done prior to exchange of contracts, as once contracts are exchanged you are legally bound to complete the purchase even if you later discover physical defects in the property, and you will not be entitled to compensation. The most basic survey is the mortgage valuation, which is carried out on the instruction of the lender, and comprises a brief inspection of the property and an assessment to check that the property is of sufficient value to protect the mortgage company's interest.

You may wish to have a more detailed survey, for example where the property is a listed building. We will be happy to recommend a professional surveyor. On completion day the purchase monies are sent from the buyer's solicitors to the seller's solicitors by same day telegraphic transfer. The seller's solicitors will not release the keys until they have received the money. Most sales complete by mid-afternoon.

Do I have to pay stamp duty and Land Registry fees?

Effectively, stamp duty will be payable on all purchases where the purchase price is more than £60,000.00. The scale for stamp duty is 1% of the price for a purchase between £60,000.00 and £250,000.00, 3% of the price for a purchase between £250,000.00 and £500,000.00, and 4% of the price for purchase above £500,000.00. The transaction may be exempt if the purchase price is less than £150,000.00 and if the property lies within a 'qualifying area'. To check if your purchase is exempt, go to the Inland Revenue website and simply type in the postcode of the property you are buying, and you will get an answer almost immediately. There are some very sophisticated stamp duty saving schemes, which are sometimes used in very high value transactions; if you require further information, please contact our Financial Planning department. Land Registry fees must be paid on a purchase: the scale for fees is £40.00 for a price up to £50,000.00, £60.00 where the price is between £50,001.00 and £80,000.00, £100.00 where the price is between £80,001.00 and 100,000.00, £150.00 where the price is between £100,001.00 and £200,000.00, £250.00 where the price is between £200,001.00 and £500,000.00, £450.00 where the price is between £500,001.00 and £1,000,000.00, and if the price is over £1,000,001.00 the fee payable will be £750.00.

Why do your fees differ for leasehold and freehold properties?

There is always more work involved in leasehold conveyancing. There is more paperwork involved in the transaction: for example, the lease and leasehold information (including up to date service charge, ground rent and buildings insurance details) obtained from the freeholder or managing agents. There are strict criteria that the lease must meet in order to be acceptable to a mortgage company. If it does not meet these requirements, the lease must be amended, which normally involves additional expense for the seller.

How do I apply for a mortgage?

We have our own independent financial planning department who will be happy to act on your behalf in finding a mortgage product that is suitable to your particular needs. If you need a mortgage to purchase the property, contracts should not be exchanged until an acceptable written offer of mortgage has been received; verbal confirmation from the mortgage company is not enough.

FAQs by sellers

I haven't found a buyer yet. When should I instruct my solicitor?

Although you don't have to appoint a solicitor until an offer has been agreed and accepted, the process can be speeded up, by appointing a solicitor as soon as the property is placed on the market. You will need to complete a set of standard information forms and you will also need to give your solicitor details of where to obtain the title deeds (usually your lender if you have a mortgage) and if the property is leasehold the details of the freeholder or managing agents so that up to date service charge information can be obtained at the earliest opportunity.

When will my mortgage be paid off?

Any existing mortgage will be paid off at completion from the purchase monies. We will contact your mortgage lender at the beginning of the transaction to ask how much it will cost to pay off the mortgage and we will ask for an update after contracts have been exchanged and a completion date has been agreed. You may want to check with your lender whether you will be charged a financial penalty if you pay off the mortgage early; this often applies when your existing mortgage was set up on a fixed rate, or if you received a 'cash back' when it was originally set up.

Will the local authority search delay the transaction?

We would recommend that when you put the property on the market you check with your agent or your solicitor as to the turnaround time for local searches in your area so that you can anticipate any problem. Make sure that the agent draws any potential delays to the buyer's attention and ensure the search is submitted at the earliest opportunity. Searches can now be made online. Ask the agent to draw this to the buyer's attention to ensure that they consider this option with their solicitor. However, the technology is still at an early stage and not all solicitors can offer this facility.

My buyer has less than a 10% deposit at exchange of contracts.

If you agree to accept less than a 10% deposit on exchange of contracts, and the buyer fails to complete the transaction on the completion date, they must pay the balance. However, you would normally have to go through the due legal process to recover your losses and it might not be financially worthwhile to sue the buyer. Fortunately, in practice it is extremely rare for a buyer to default, but you need to be aware of the slight risk if you accept a deposit of less than 10% of the price.