Conveyancing Tips for First-Time Property Buyers in the UK
Conveyancing is the legal process of transferring property ownership from one party to another. If you’re a first-time buyer in the UK, this process may seem daunting, but understanding the key steps can help make it more manageable. See our conveyancing tips for first time buyers – a helpful guide to what you can expect:
1. Instruct a Conveyancing Solicitor
Once your offer on a property is accepted, it’s time to hire a conveyancing solicitor to help you handle the legal side of the transaction.
• What to do: Research and choose a solicitor. It’s important to pick someone experienced in residential property law.
• Costs: Conveyancing fees can vary depending on the property’s value and complexity of the sale. You’ll also pay for disbursements (additional costs like searches, registration fees, etc.).
2. Pre-Contract Work & Initial Checks
Your solicitor will begin the process by carrying out checks on the property.
• Property Searches: Your solicitor will arrange for property searches, including:
Local authority search – checks for any planning issues or restrictions.
Land Registry search – confirms the ownership and boundary of the property.
Environmental and flood risk searches – checks for potential risks like flooding or contamination.
Chancel repair liability search – checks if you may be liable for the cost of repairs to the local church (not common, but possible).
• What to do: Make sure you provide your solicitor with all required documents, such as proof of ID and address (usually a passport or driving license and utility bill).
3. Review the Contract & Property Documents
Once your solicitor receives the draft contract from the seller’s solicitor, they’ll review all the terms, the property details, and any potential issues. They may request amendments or raise questions with the seller’s solicitor.
What your solicitor checks:
The sale price and payment terms.
Any restrictions on the property.
The property’s title (ownership history, easements, rights of way, etc.).
Fixtures and fittings included in the sale (such as kitchen appliances).
• What to do: You may be asked to sign documents and provide any additional information requested by your solicitor.
4. Arrange a Property Survey
While your solicitor is working on the legal side, it’s also advisable to arrange a property survey. This is particularly important for first-time buyers, as it gives you an insight into the condition of the property.
• Types of surveys:
Basic/Home Condition Report – a simple inspection that identifies urgent issues.
Homebuyers Report – more detailed, including structural issues.
Building Survey – the most detailed survey, often recommended for older or unusual properties.
• What to do: You can hire a chartered surveyor to carry out the survey. It’s wise to arrange this early in the process.
5. Exchange of Contracts
After your solicitor is satisfied with the property and the contract, and you have your mortgage offer in place (if applicable), you’ll exchange contracts with the seller.
• What happens at exchange:
You and the seller sign the contract.
A deposit (usually 10% of the purchase price) is paid to the seller’s solicitor. This becomes legally binding.
The completion date is set (usually 1-4 weeks after the exchange).
• What to do: Ensure you have the deposit ready and that you are financially prepared for the completion date.
6. Completion
Completion is when the property officially becomes yours, and the seller receives the funds.
• What happens at completion:
The remaining balance of the property price is transferred to the seller.
You receive the keys to your new home.
The ownership is registered in your name at the Land Registry.
• What to do: Arrange for removal companies, utilities, and any other necessary services to be set up for your move-in.
7. Post-Completion Tasks
After completion, there are a few final legal steps.
• Land Registry Registration: Your solicitor will register the property in your name with the Land Registry. This may take a few weeks.
• Paying Stamp Duty (if applicable): If you’re buying a property over £250,000, you’ll need to pay Stamp Duty Land Tax (SDLT). Your solicitor will usually handle this payment for you.
For first-time buyers, there is an SDLT exemption or reduction if the property costs less than £425,000 (check current rules as these may change).
8. Receive Your Deeds
After the property is officially registered in your name, you’ll receive your title deeds. These confirm your legal ownership of the property.
Common Costs and Fees You Need to Be Aware Of:
1. Conveyancing Fees – Legal fees for handling the process.
2. Stamp Duty Land Tax (SDLT) – Tax on properties over a certain price.
3. Surveys – Fees for property surveys (optional but recommended).
4. Search Fees – Paid for local authority and other searches.
5. Registration Fees – Paid to the Land Registry for registering your ownership.
Helpful Tips for First-Time Buyers:
• Budget for additional costs: In addition to the property price, make sure you budget for all the other associated costs, like survey fees, legal fees, and Stamp Duty.
• Mortgage offer: Ensure your mortgage is in place well in advance. Your lender will require a valuation of the property, which is separate from your survey.
• First-Time Buyer Schemes: Take advantage of government schemes like Help to Buy or Shared Ownership, if eligible.
• Stay in close communication with your solicitor to ensure you are informed at every step.
Conclusion
The conveyancing process can take anywhere from 8-12 weeks or longer, depending on the complexity of the sale and the parties involved. Patience and careful planning are key to navigating the process smoothly. Once everything is completed, you can officially move into your new home!
If you are planning on purchasing a new home and have found our conveyancing tips for first time buyers useful. Contact our conveyancing team for a fees quote or advice on your purchase.