Buying a house can be a complicated process. From finding the right property, determining your budget to getting a mortgage, there are many factors to take into consideration when buying a property!
Make sure you are ready to take the leap with the help of this guide.
Start with determining your budget and arranging finance. It is important to work out how much funds you have and how much you can borrow, to get an idea of the types of properties you can afford. While working out a realistic and affordable budget, you will need to consider a variety of factors including your creditworthiness, debts, monthly spending, and your personal circumstances. You also need to take note of the extra costs involved such as stamp duty, legal fees, surveyor charges, mortgage broker fees, and other upfront costs. You can consult a professional lender such as a bank or a mortgage broker who can help in determining the best terms within your financial limits.
Once you know your budget, start your property search by narrowing down your requirements such as the number of bedrooms or bathrooms, the suburb, or search for an apartment, villa, or townhouse. Some home buyers often desire certain amenities like parks, cafes, and shopping centres, while for others proximity to good public transport and access to well-regarded schools and childcare are the top picks. A checklist of all the features your home must have, combined with an idea of your borrowing power is quite helpful in the process of identifying properties that match your criteria.
When you are buying a property in London, it is important to understand the terms of the residential leasehold. Most of the property in London is leasehold, which means that the owners effectively buy the right to the property for a set amount of time. Leasehold ownership can be referred to as a long tenancy, where the leaseholder pays annual ground rent to a freeholder who manages the property. You can only lease a property for a fixed period of time that may vary, but today most new leases seem to be granted for 125 or 999 years.
Once you have selected a property you want to buy, the next step is to make an offer. Thorough research about the prevailing market conditions, property prices, and demand for similar homes in the area along with your own personal circumstances can form a logical ground for price negotiations. At this stage, you may also consider having a solicitor in place who can help you in determining how much to offer and undertake the legal work involved in your house purchase later.
Once the offer is made and accepted, there is a lot of paperwork and legal formalities involved. Using an efficient and experienced solicitor is the key to a quick and successful purchase. The solicitor will proceed with the conveyancing process, examining the paperwork for any flaws and raising inquiries if any. The solicitor acts like an intermediary between you and the seller and takes the process further to settlement. You will also need to inform your mortgage broker to proceed with your application. After the careful valuation, your bank will issue a formal mortgage offer to you that needs to be signed before it is returned. try getting expert suggestions from leading estate agents regent’s park for better assistance.
The next step in the process is the exchange of contracts, where both sides agree and sign and exchange final copies with each other. This is when the sale becomes binding, and usually, after this point, neither party can pull out without paying compensation. Solicitor will confirm the legal completion date and see through the final terms of completion. The money is transferred from the buyer to the seller. The property ownership documents along with the keys handed over to the buyer, which certifies that the property now belongs to the buyer.
