Buying your first home is an exciting and significant milestone, however, it can also be an overwhelming step with multiple different legal requirements and various professional input required.
We’ve put forward a straightforward guide to ensure that you’re fully aware of the necessary considerations during this exciting process.
To start with, you will need to get a mortgage in place from a lender. At the date of this article, the UK’s average house price is £291,000; this jumps to nearly double that at £564,000 in London.
Most lenders offer mortgages of around 4 to 4.5 times your, or any combined, annual income. Therefore, affordability is a key consideration. The lender will want to ensure that you aren’t overstretching your financial liability.
It’s also important to remember that you’ll usually need a deposit of 5% to 10% of the property value, so make sure you budget this into your finances.
Another consideration is Stamp Duty Land Tax (SDLT). Again, at the date of this article, this is 0% up to £125,000 of the property value. After that, from £125,000 to £250,000, this increases to 2%. From £250,001 to £925,000 this goes up to 5%. From £925,001 to £1.5 million this doubles to 10%, and finally, the remaining amount above £1.5 million will be 12%. This quickly adds up, so make sure you’ve budgeted that into your property purchase financials.
You will also need a competent conveyancer and solicitor on board. Your solicitor is going to ensure the legal contract is sound. They will examine the title documents, conduct searches, and represent your best interests as the buyer. We’ve got a full article on a solicitor’s role we would advise having a read of. Conveyancing costs vary based on experience, however, as an estimate, expect fees from £500 to £10,000, the latter cost being for higher value or more complex properties.
Finally, don’t forget the Pre-Purchase Home Survey. The two most typical surveys are a Level 2 Survey and a Level 3 Survey.
Level 2 Surveys are ideal for new homes or flats. Level 3 Surveys are ideal for older homes or houses.
Both Surveys cover the same elements; the only difference between the two is that a Level 3 Survey goes into greater detail than a Level 2 Survey.
When considering which one is right for you, we would advise discussing your concerns with a Surveyor who will be able to give you the input and advice you need to select the right Survey.
We have an industry-first instant Survey quote if you want to get a fixed cost, compare the prices of our Surveys and find out how we complete these.
