The What's What of Becoming a Homeowner

Published: 20/09/2024

Life is about new chapters and new challenges, but they aren’t all a walk in the park. That’s all part of the journey, though, right?  When it comes to buying a property, understanding the timeline of events can make the process smoother and less stressful - well, in theory, and with the right people around you…like us! In this blog, we will take you through the key stages of buying a property here in the UK, from the initial search to finally getting the keys in your hand and your sanity back to reset mode.

Searching for the Right Property

The first step in buying a property is, of course, finding one that suits your needs and budget. This can be the most time-consuming part of the process, often taking anywhere from a few weeks to several months. The duration depends on the market, your preferences, and how specific your criteria are. Some people find their dream home quickly, while others might take a bit longer, especially if they have particular needs or if the market is competitive.

When you start visiting properties, keep an open mind but also be realistic about your expectations. Sometimes, a home might not tick every box, but it could still be a great option with a bit of compromise. Viewings are essential to get a feel for the property and the neighbourhood. It’s advisable to view multiple properties to compare and ensure you’re making an informed decision. We also suggest registering with a local - and reputable - estate agent who can alert you to new properties before they even hit the market.

Arranging Finances

While searching for the right property, it’s wise to get your finances in order. Understanding what you can afford will help you avoid wasting time on properties outside your budget. Most people will need a mortgage to buy a property, so arranging a mortgage in principle is a crucial early step. This is an agreement from a lender stating that they would, in theory, lend you a certain amount based on your financial situation. Remember that although this isn't a guaranteed mortgage offer, it does show both the seller and estate agent that you are a serious buyer and have the financial backing to proceed. It’s peace of mind.

Securing a mortgage, in principle, usually involves providing details about your income, outgoings, and credit history to a lender or mortgage broker. It can take a few days, but it’s an important step that can make the rest of the buying process smoother. If you’re unsure about the best mortgage product for your situation, consulting a mortgage advisor can be beneficial. They help you navigate the various mortgage options and find the best deal.

Making an Offer

Once you’ve found the perfect property, it’s time to make an offer. This part can be nerve-wracking. In the UK, making an offer is usually done through the estate agent handling the property sale. Depending on market conditions, you might be able to negotiate a lower price, or in a competitive market, you may need to offer the asking price or even more to secure the property. When making an offer, it’s essential to be realistic and consider the property's value and how much you’re willing to pay.
 
After you submit your offer, the seller can accept, reject, or counter it. Once your offer is accepted, you will enter into a verbal agreement with the seller, but remember that this agreement isn’t legally binding in England and Wales until contracts are exchanged.

Instructing a Solicitor or Conveyancer

So, your offer has been accepted, and you are ready to proceed. The next step is to instruct a solicitor or conveyancer to handle the legal aspects of the property purchase. Conveyancing sounds like a scary word, but all it is is the legal process of transferring property ownership from the seller to the buyer.
 
Choosing the right solicitor or conveyancer is important, as their efficiency can significantly impact the timeline of your purchase. You can ask for recommendations from friends, family, or your estate agent. Your solicitor will then begin the necessary searches and inquiries related to the property; these include checking the title deeds to ensure the seller owns the property outright and conducting local authority searches to uncover any planning issues or disputes. During this time, your solicitor will also draft the contract of sale and communicate with the seller’s solicitor to address any concerns or problems that arise.

Survey and Valuation

While your solicitor is handling the legal aspects, your lender will require a valuation survey to ensure the property is worth the amount you’re borrowing. This valuation is primarily for the lender’s benefit, but it’s also a good idea for you to arrange a more detailed survey to assess the condition of the property.

There are different types of surveys you can choose from, depending on the property’s age and condition. A basic valuation is the most straightforward and cheapest option, but it won’t highlight any potential issues with the property. A Homebuyer Report is more detailed and will point out any major defects or issues that might need addressing. If you’re buying an older or unusual property, a Building Survey (sometimes called a full structural survey) is the most comprehensive option, though it’s also the most expensive.

If the survey reveals any issues, your estate agent may suggest renegotiating the price or asking the seller to fix the problems before proceeding.

Mortgage Offer 

Assuming the valuation matches up and your finances are in order, your lender will issue a formal mortgage offer. This is a crucial document as it confirms the lender’s commitment to providing you with the funds to purchase the property. The mortgage offer will outline the terms of the loan, including the interest rate, repayment schedule, and any conditions you need to meet.

Receiving the mortgage offer is an exciting milestone in the buying process. After accepting the offer, it’s usually valid for three to six months, giving you time to complete the purchase.

Exchanging Contracts

With the mortgage offer in place and all legal checks complete, the next step is exchanging contracts. At this point, the sale becomes legally binding for both the buyer and the seller. Up until this stage, either party can pull out of the transaction without any financial penalty, but after contracts are exchanged, backing out would incur significant costs. You want to avoid that at all costs.

You will need to pay a deposit at this point, which is transferred to the seller’s solicitor as a sign of your commitment to the purchase. Exchanging contracts typically take place a few weeks before the completion date, though the timeline can vary. In some cases, particularly when both parties are ready, exchange and completion can happen on the same day, but this is less common.

Completion Day

Completion is the day you finally get the keys to your new property and the most exciting stage of the process. On this day, your solicitor will ensure that all the necessary funds are in place, including your mortgage funds and any remaining deposit. Once the money has been transferred and received by the seller’s solicitor, they will confirm that the transaction is complete. You can collect the keys from the estate agent and start moving into your new home…yay!

Completion day can be a bit nerve-wracking, especially as the timing of funds transfer can sometimes cause delays. However, most completions go smoothly, and by the end of the day, you’ll be holding the keys to your new property.

The Next Chapter…

After you have moved in, you can focus on settling into your new home. Moving in is the start of an exciting new chapter, but remember to finalise all the boring bits, too. No doubt you will need to update your address with various services and inform the relevant local authorities, etc.; it’s also a good idea to review your home insurance now that you’re officially the owner.

The entire process can take several months, depending on various factors, but understanding the timeline can help you manage your expectations and reduce stress along the way. We are also on hand to answer any questions that you may have. Now get started on your search, and when the time comes…enjoy your new home!
Chat with us on WhatsApp