First-Time Homebuyers: Key Points to Consider

A typical conveyancing transaction takes between 12 to 16 weeks from instructing a conveyance to completion. However, this timeline may vary depending on factors such as the length of the chain and the number of parties involved in it, mortgage approvals, and unforeseen legal or property-related issues.

Freehold and leasehold properties differ fundamentally in terms of ownership and responsibilities. Buyers should carefully consider these distinctions when choosing which type of property to purchase.

• Freehold: You own the property and the land it is built on. Most houses are freehold.
• Leasehold: Under a lease, you own the property for a fixed period of time while the land remains owned by a freeholder. Most flats and maisonettes are leasehold.

Our article “What is the Difference Between Freehold and Leasehold Ownership” provides a detailed explanation.

Stamp Duty Land Tax is a tax payable when purchasing property above a certain price threshold, which buyers should be aware of before making a purchase.

If you are purchasing a property with another person, you can own the property in one of two ways:

• Joint Tenants: Each owner has an equal share. If one owner passes away, the property automatically transfers to the surviving owner(s) regardless of the terms of the deceased owner's Will. 

• Tenants in Common: Each owner has a distinct share (e.g., 50/50 or 75/25). If one owner passes away, their share is distributed as per their Will or the Law of Intestacy. This structure may be more suitable if contributions to the purchase price are unequal.  

The seller will provide a Property Information Form, which includes details on:

• Any alterations or structural changes
• Boundaries and disputes
• Notices affecting the property
• History of flooding
• Utility providers and other practical property details

Conveyancers will conduct searches to identify potential issues before you commit to purchasing a property. Key searches include:

• Local Authority Search provides information about the property on:
  • Planning history, such as planning applications, building regulation approvals, etc.
  • Road developments, traffic and railway schemes within 200 miles of the property
  • Public footpaths affecting the property
  • Whether the property is a listed building or subject to a Tree Preservation Order, etc.
  • Conservation area, Area of Outstanding Natural Beauty, or other designated areas

• Water & Drainage Search confirms whether the property is connected to mains water and sewer services, including a plan showing the nearest mains sewer and mains water pipe.

• Environmental Search is an internet-based search to identify potential risks that may affect the property, including:
  • Rise of subsidence
  • Risk of flooding
  • Energy infrastructures in the area (e.g., solar farms and wind farms)

A property survey assesses the condition of the property. There are two main types:

• Homebuyer Survey and Valuation: This survey includes:
  • General condition of the property
  • Major faults in accessible parts of the building
  • Urgent issues that need specialist inspection 
  • Estimated rebuild cost for insurance purposes
  • Market valuation of the property
  • Any alterations that may have required planning or building regulations approval

This survey focuses only on the urgent issues concerning the property and does not cover every aspect of its condition. It should not be considered a definitive assessment of the property. Typically, it is unsuitable for properties requiring renovation or for those planning significant modifications. The surveyor will generally inspect the main structure.

• Building Survey (Structural Survey): This is a more comprehensive inspection, covering:
  • Major and minor faults and their implications
  • Possible repair costs
  • Detailed technical information about construction and materials used
  • Location analysis
  • Recommendations for further specialist inspections

When you exchange contracts, you typically need to pay a deposit of 10% of the purchase price. If you are selling and buying simultaneously, your conveyancer may use the deposit from your sale toward your purchase. The deposit your conveyancer receives on your sale is normally 10% of the sale price. If you are purchasing a more expensive property, an additional sum may be required.

• Exchange of Contracts: This is the point when contracts are exchanged between parties, making the transaction legally binding. After this stage, neither party can change the agreed completion date.  Also, neither party can withdraw from the transaction without incurring penalties.

• Completion: This is the final stage, when the balance of the purchase price is transferred to the seller’s solicitor, and the buyer receive the keys to their new property.