| Instructing a Property Conveyancer or Solicitor |
Instructing a Property Conveyancer or Solicitor
You are not looking for just any solicitor when it comes to buying a property. Most solicitors specialise in one area of law in which they become experts. So you are looking to employ one that specialise in the area on property conveyance. In the UK you could technically do your own conveyance but this would be beyond not so much the ability of the average person but it is not something most people would want to do.
The usual way to get a solicitor is to proceed on the recommendation of someone you trust. It would not be too difficult to find a recommended solicitor in view of the number of people who buy houses in this country. You are bound to find a solicitor who specialise in property conveyance without too much difficulty.
Subject to receiving a mortgage offer on the property the next step would be to formally instruct the solicitors to act on your behalf in the purchase of the property. They will issue you with a letter confirming your instructions to retain them and providing you with full details of their service.
Instructing a Conveyancer or Property Solicitor
In relation to the mortgage offer the mortgage lenders would first carry out a credit check on both you and your partner if it is a joint mortgage. If the mortgage is in your name only the credit cheque will be just on yourself as the only applicant for a mortgage. Subject to your credit rating being satisfactory and meets with the lender’s criteria for a mortgage loan and you also satisfying other conditions of affordability etc. then a mortgage is sent to you in the post confirming the amount of the mortgage offered on the property.
As a first-time buyer you may have applied for and received a 100 percent mortgage. This means that the mortgage lenders are prepared to cover the full purchase price or offer you made on the property. There have been recent cases of irresponsible lending by some lenders and you should make sure you do not over-stretch yourself and subsequently become victim to a repossession.
There are risks involved in taking 100 percent mortgage on a property in that if house prices fall you immediately go into negative equity on the property. Therefore most lenders make it a criteria that in exchange for a mortgage you contribute a deposit of a minimum of 5 percent of the purchase price of the property. The mortgage lenders would have surveyed the property to make sure it can be sold for at least the value of the loan before confirming a mortgage offer to you.
So having now secured a mortgage on the property and made an offer which has been accepted and retained solicitors, you must now await the outcome of searches to be carried out by your solicitor.
These searches include local authority searches to see what proposals are in progress for road building or sewage plants or other projects, if any, from the planning department of the local authority that could adversely affect the property you propose to purchase. Your solicitor will check to see if there are any planning applications or approval of applications for any project of any kind that would be detrimental to your interest in the property.
These searches and enquiries involve application fees and you will be asked by your solicitor to cover these fees upfront. Ultimately also will be your solicitor’s fees to pay beyond the cost of these search fees. However, when first instructing your solicitor they would have provided you with a fairly accurate estimate of their proposed fees for their service. Therefore you would have known what these expenses are and should have budgeted to cover these. You will also be required to pay for the cost of stamp duty on the property which is payable to the government. This item of cost would also have been advised upon by your solicitor at the outset. This expense is collected from you by your solicitor in their fees to be paid over to the government.
We next look at Exchange of Contract.
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This site is a common sense guide to Instructing a Property Conveyancer or Solicitor. In practical advice websites, like anything else in life, there are no guarantees of income made. Readers are cautioned to reply on their own judgment about their individual circumstances to act accordingly.
This site is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek services of competent professionals in legal, business, accounting, and finance field.
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