Buying a new home or an investment property can be a daunting prospect. Even experienced home buyers can find it a lengthy, confusing and complicated exercise.
To make the task a little less daunting, we have put together a homebuyers guide. This step by step guide, based on years of industry experience and will ease you through the process from start to finish and help you to navigate around many of the common home buying pitfalls that any purchaser can encounter.
Once you have decided that you are going to buy property, the next step is to decide exactly how much you can realistically afford - which in turn will affect which types of property you should be looking at.
This must not only include the cost of the house itself, but also the other one-off expenses involved in buying a home and moving - which can soon add up.
These costs may include, but are not limited to;
- Arrangement fee by the lendor
- Lenders valuation
- Survey
- Legal conveyancing fees
- Stamp duty
- Local authority and other search fees
- House hunting fees
- Removal fees and a contingency fund
To do this you need to work out:
- The amount you will get from the sale of any current home
- The amount you can borrow
- The amount you have available in savings or investments
Once you have done this, work out how much the other one-off costs of buying and moving will add up to.
We would recommend that before looking at properties, you should consult a lender or mortgage adviser to see what your maximum possible loan would be. This will be based on the size of your deposit and how much you earn. Many people will wait until they have found the property before arranging their mortgage, however if you can get an "Agreement in Principal" from your chosen lender it can often convince the vendor that you are a genuine purchaser and put you in a better position to negotiate.
Once you have decided to buy a house and found out how much you can afford, you can start thinking hard about what you want from your new home both now and in the years that you will live there.
Below is a list of some of the things that we believe you should consider when house hunting.
Choosing an Area
It is important to research each particular area before viewing lots of properties there. For example many of the suburbs of Newcastle, i.e. Jesmond, Heaton or Gosforth, differ significantly from each other. Also within each suburb any given street can have a different demographic living in it. Within West Jesmond many of the streets, like Lavender Gardens or Bayswater Road, may now be predominantly student lets while Highbury still remains the domain of professionals and families.
Even if you can get a bigger home for your money in an area that isn't so desirable, make sure that's what you really want. Remember that although you can make home improvements it is more difficult to change the neighborhood.
Although the internet is a great tool for searching through a vast quantity of properties and areas, simply touring the area can give you a good idea of what it is actually like.
Types of Property
To decide what type of property you want you are going to have to ask yourself some more questions:
- Do you want a new or an older house?
- Do you want a terraced, semi-detached or detached house, or even a flat?
If the answer is a flat, do you want an older style purpose-built flat such as a Tyneside Flat or a modern-purpose built flat or even a period conversion apartment?
A few common considerations are space, privacy, noise, parking, character and obviously price.
Another important decision to make is whether you want your property to be freehold or leasehold.
Freehold
Freehold means that you fully own the property. As a freeholder you will have full responsibility for the maintenance and repairs of the property.
Leasehold
Leasehold means that you own the property for as long as is specified in the lease; you are granted the right to live there by the freeholder. At the end of the lease the property again becomes the possession of the freeholder. Many leases are originally granted for up to 999 years, but existing leases on properties are usually shorter. The lease stipulates who is responsible for maintaining and repairing different parts of the property and any conditions you must meet as a resident. Check these if you are considering buying leasehold. You must also pay a ground rent to the owner of the land (the freeholder), usually a small amount paid each year. Your solicitor should check that the seller is up to date with ground rent payments before you sign the contract.
Tyneside Flats
A further arrangement to consider when purchasing in the North East of England is the Tyneside flat agreement. In this both the upper and lower flats are bought leasehold but the upper flat owns the freehold for the lower flat and the lower flat owns the freehold for the upper flat.
The rent is 'peppercorn' which appears to be a valid amount to put on your mortgage application, however in real terms neither owner pays anything. Sometimes if your solicitor is unfamiliar with Tyneside Leases it can make the sales process a little longer. This agreement does have some benefits, such as flats are jointly responsible for the building.
As with any of the information on these pages, each type of accommodation will have its pros and cons and it would be worthwhile having a chat with one of the professionals on Mansons Sales team, who will be happy to give you advice on each type of property in their area.
Key Viewing Tips
Once you have found a property you feel you like, make sure you learn as much as possible about it at the viewing. It's a good idea to make notes and possibly take some photos, so properties can be remembered more easily and compared afterwards. If a property is of particular interest and a second viewing is arranged try and view it at a different time of day.
Some easy checks and actions to carry out on a viewing that Mansons would recommend are:
Insulation: Is the roof well-insulated? Go into the loft and turn off the light - you shouldn't be able to see any patches of day-light. Is there wall-cavity insulation?
Central Heating: Is the central heating system efficient? How old is it? Is it gas or electricity-powered?
Plumbing: Are the pipes and the boiler lagged? How old is the piping? Lead piping will need replacing.
Plug sockets: How old are they? If they are the old-fashioned, round-pin type, re-wiring is something to be seriously considered.
Subsidence: Look for cracks in ceilings and walls, doors that stick or don't hang correctly.
Damp: Normally you can smell damp. Also look for mould, walls that are damp to the touch, flaking paintwork or wallpaper that is peeling off, are also signs of damp. Be wary of new paint or wallpaper that could be hiding problems underneath.
Condensation problems: Rotting window frames can be a sign of this. If they are very soft to the touch this means they are rotten. Make sure the bathrooms and kitchen are well ventilated.
Woodworm: Indicated by holes in woodwork.
Subsidence: Look for big cracks in the walls, a bent chimney stack, or an uneven roofline.
Damp: Examine for missing roof tiles, and check the brickwork and mortar as cracks can let in damp.
Root damage to foundations: If there are any big trees nearby this could cause problems.
Remember - don't cut corners.?Inspecting the property yourself DOES NOT avoid the need for a professional survey.
Lower Valuation
Online Valuation
Upper Valuation
Lower Valuation
Online Valuation
Upper Valuation
Your valuation of ### is based on the current housing price trends of the ### area.
The value has ### by ### since it was last sold on ### for ###.
No sale information is available on this property, so the valuation is based on the nearby sales of similar properties.
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Terms and Conditions
These are the terms and conditions on which we supply our online property e-valuation tool to you. Please read these terms carefully before you submit details of a property to us as doing so will form a contract between us based strictly on these terms and conditions. All use of our e-valuation tool is strictly subject to these terms and conditions.
By accepting these terms and conditions you understand that you will be contacted to discuss the online valuation provided.
These terms tell you who we are, how we will provide our property e-valuation tool to you, how you and we may change or end the contract, what to do if there is a problem and other important information. If you think there is a mistake in these terms, please contact us to discuss.
1. Information about us and how to contact us
Who we are.
Please refer to the privacy policy on our website.
2. Our property e-valuation tool
What is our property e-valuation tool? Our property e-valuation tool provides you with an estimate valuation of the property based on the details of the property you provide. Our property e-valuation tool uses these details and compares them to publicly available data relating to property characteristics and sales in your area to provide you with an estimate value for that property.
When we will provide our services. We will begin providing you with our services, being the property valuation using our property e-valuation tool, when you submit the details of a property to our property e-valuation tool via our website, provide your contact details and accept these terms and conditions by ticking the “I agree to the Terms & Conditions” box. After submitting these details, our property e-valuation tool should provide you with a property valuation based on the details you entered. At this point we will have finished providing you with our services and the contract will be ended.
Free service for consumers. We only supply our property e-valuation tool for your private use or by an agent as part of the services it delivers to you. As you are a consumer, our property e-valuation tool is currently provided on a free to use basis and no payment is due from you.
Making sure the details you provide are accurate. Our property e-valuation tool is providing you with a valuation based on the information you have given us about a property including property address, number of bedrooms etc. You are responsible for ensuring this information is correct, accurate and up to date.
What will happen if you do not provide the required information. We need certain information about the property so we can supply our property e-valuation tool to you, for example, the type of property address, number of bedrooms etc. If you do not provide all of this required information to our property e-valuation tool or if you provide incomplete or incorrect information, the valuation may be unavailable and/or inaccurate. We will not be responsible for either the failure to supply our property e-valuation tool or the inaccuracy of the valuation if this is caused by you not giving us the information needed for our property e-valuation tool to provide you with an estimate.
Our property e-valuation tool is a guide only. By making available our property e-valuation tool to you, we are not providing you with estate agency services. Please be aware the valuations provided by our property e-valuation tool are estimates and not formal valuations of the property. The valuation is based on publicly available information which may be inaccurate and/or incomplete. The estimates may also be based on assumptions and typical factors or trends in certain areas and/or in relation to certain types of property. The valuation is intended to be of general interest and provide you with a useful guide to the likely value of a property and this valuation should be supplemented by you with additional research, professional advice and a market appraisal. We are not supplying you with advice or recommendations. If you are thinking about selling your property, please arrange for a formal valuation of your property by following the link provided to book a market appraisal with an estate agent. If you click this link, you agree to us storing, processing and sharing your personal data (including your name and email address) with our affiliated professionals to facilitate the provision of such market appraisal. We shall not be liable for any losses suffered as a result of relying on valuations provided by our property e-valuation tool.
Changes to our property e-valuation tool. We may change our property e-valuation tool:
(a) to reflect changes in relevant laws and regulatory requirements; and
(b) to implement minor technical adjustments and improvements, for example to address a security threat.
These changes may mean our property e-valuation tool is temporarily unavailable.
Non-availability of our property e-valuation tool. Our property e-valuation tool is provided on an “as is” and “as available” basis and may be unavailable for use by you for the following reasons:
(a) to deal with technical problems or make minor technical changes; or
(b) to update our property e-valuation tool to reflect changes in relevant laws and regulatory requirements; or
(c) if our property e-valuation tool is interrupted or delayed by an event outside our control.
Where we can, we will endeavour to let you know if any of these events occur via an error message when using our property e-valuation tool. As we do not gather your contact details before you use our property e-valuation tool, we will not be able to contact you in advance to tell you we will be suspending supply of our property e-valuation tool.
Please note we are not responsible for delays outside our control. We will take steps to minimise the effect of the delay. Provided we do this we will not be liable for delays caused by the event outside our control.
We do not guarantee our property e-valuation tool will be secure or free from bugs or viruses. You are responsible for configuring your device and platform to use our property e-valuation tool and to maintain cyber security. You should use your own virus protection software.
How to tell us about problems. If you have any questions, suggestions, feedback or complaints about our property e-valuation tool, please contact us.
We only provide our services in the UK. Our website is solely for the promotion of our estate agency and related services in the UK. Unfortunately, we do not provide services outside of the UK and our property e-valuation tool is only for use in relation to UK properties.
Ownership of our property e-valuation tool. We are the licensees of all intellectual property rights in and relating to our property e-valuation tool. Such rights intellectual property rights are reserved in their entirety and you are not granted any right or entitlement to such intellectual property rights.
How we may use the information you provide. We will use the information you provide to us:
(a) to supply our property e-valuation tool to you; and
(b) to give you information about our estate agencies services we provide (but you may stop receiving this at any time by contacting us).
We do not collect and/or retain the information about the property you submit to our property e-valuation tool. However, the information, data and property details you submit to our property e-valuation tool will be considered non-confidential and non-proprietary.
How we may use your personal information. We will only use your personal information in accordance with our privacy policy. We will only give your personal information to third parties where the law either requires or allows us to do so.
3. Your rights as a consumer
For most online services you have a legal right under Consumer Contracts Regulations 2013 to change your mind about entering into the contract within 14 days of ordering the services.
However, as our property e-valuation tool provides you with the requested valuation for a property almost immediately after you submit the property details and agree to these terms and conditions, the contract between us for the provision to you of our services ends almost immediately after it has been entered into. This means there is not time for you to exercise your rights to cancel this contract.
Nevertheless, we are under a legal duty to supply services in conformity with these terms and conditions and nothing in these terms will affect your legal rights.
We may not make our property e-valuation tool available to you in the future if you breach this agreement our or our website’s terms of use.
4. Our responsibility for loss or damage suffered by you
We are responsible to you for foreseeable loss and damage caused by us. If we fail to comply with these terms and conditions, we are responsible for loss or damage you suffer which is a foreseeable result of our breaking this contract or our failing to use reasonable care and skill, but we are not responsible for any loss or damage which is not foreseeable. Loss or damage is foreseeable if either it is obvious it will happen or if, at the time the contract was made, both we and you knew it might happen.
We do not exclude or limit in any way our liability to you where it would be unlawful to do so. This includes liability for death or personal injury caused by our negligence or the negligence of our employees, agents or subcontractors; for fraud or fraudulent misrepresentation; for breach of your legal rights in relation to our property e-valuation tool including the right to receive services which are as described and match information we provided to you about our property e-valuation tool and supplied with reasonable skill and care.
We are not liable for business losses. We only supply our property e-valuation tool for domestic and private use. If you use our property e-valuation tool for any commercial, business or re-sale purpose we will have no liability to you for any loss of profit, loss of business, business interruption, loss of business opportunity or indirect or consequential loss.
5. Other important terms
(a) Nobody else has any rights under this contract. This contract is between you and us. No other person shall have any rights to enforce any of its terms.
(b) If a court finds part of this contract illegal, the rest will continue in force. Each of the paragraphs of these terms operates separately. If any court or relevant authority decides any of them are unlawful, the remaining paragraphs will remain in full force and effect.
(c) Even if we delay in enforcing this contract, we can still enforce it later. If we do not insist immediately you do anything you are required to do under these terms, or if we delay in taking steps against you in respect of your breaking this contract, that will not mean you do not have to do those things and it will not prevent us taking steps against you at a later date.
(d) Which laws apply to this contract and where you may bring legal proceedings. These terms are governed by English law and you can bring legal proceedings in respect of our property e-valuation tool in the English courts. If you live in Scotland you can bring legal proceedings in respect of our property e-valuation tool in either the Scottish or the English courts. If you live in Northern Ireland you can bring legal proceedings in respect of our property e-valuation tool in either the Northern Irish or the English courts.
(e) The Property Ombudsman’s alternative dispute resolution service. Alternative dispute resolution is a process where an independent body, such as The Property Ombudsman considers the facts of a dispute and seeks to resolve it, without you having to go to court. If you are not happy with how we have handled any complaint, you may want to contact The Property Ombudsman. You can submit a complaint to The Property Ombudsman via their website at www.tpos.co.uk. The Property Ombudsman will not charge you for making a complaint and if you are not satisfied with the outcome you can still bring legal proceedings. In addition, please note that disputes may be submitted for online resolution to the European Commission Online Dispute Resolution platform.
Once you have found a property that you would like to buy, the next step is to make an offer, normally through the estate agent. In deciding what you are prepared to pay, bear in mind the properties state of repair and how much you would have to spend on building work or redecoration. Although the agent may have tried to factor this into the asking price they will normally be prepared to tell you this or whether the vendor will be open to offers.
If there are several potential purchasers interested in a particular property or the market is particularly strong the seller is more likely to hold out for the asking price, or might even be using the "Offers Over" system where you may have to offer in excess of the asking price.
Once your offer has been accepted, the estate agent will confirm this in writing in the form of a "Memorandum of Sale" which will also include any further information relating to the sale. You can then go ahead with having your survey arranged and finalizing your mortgage arrangements.
All purchasers should note that the acceptance of the offer is not legally binding until contracts have been exchanged. If a higher offer comes along then the agent must put this forward to the Vendor and this can create the temptation for the seller to abandon any previous offers and accept the higher one, a process known as "gazumping". Being gazumped could leave you both frustrated and out of pocket on expenses such as legal costs and survey fees but unfortunately is a risk you have to take.
Once your offer has been accepted the estate agent will want to know whom you will be using for your conveyancing. This will be a solicitor or a law firm who will deal with the legal side of the sale.
If you are first time buyer, you will not have to worry about selling your property before you can proceed but you will still need to find a solicitor to carry out the conveyancing on the purchase.
Conveyancing comprises the following tasks:
- Obtaining the deeds which legally prove the property belongs to the person who is selling it.
- Researching where the properties legal boundaries lie and passing this information on to the buyer.
- Preparing a fixtures, fittings and contents list which makes clear what exactly will be included in the purchase price, for example white goods or carpets.
- This enquiry form will also ask the vendor whether they are aware of any defects to the property that the buyer should know about.
- Advising the purchaser on a draft contract for sale, prepared by the sellers solicitor, setting out the terms of the purchase
- Carrying out a search of the local planning information to uncover details of any future developments which could affect the properties value.
- Agreeing a date for the completion which is suitable for both the buyer and the seller.
- Conveyancing often takes longer than expected but try to be patient as it is a very important process.
Once the offer has been accepted, a survey is needed to assess the properties condition and value.?Your mortgage lender will require at least a basic valuation before approving any loan. Any surveyor that is used should be a member of the Royal Institute Of Chartered Surveyors or the Incorporated Society of Valuers and Auctioneers (now merged with RICS). Where the survey does reveal a serious problem, you are free to withdraw your offer. If the problems can be fixed, you may be able to use the survey results to negotiate a reduction in the sale price.
With the survey completed and the lender happy with it you should be nearing the point where contracts can be exchanged. Your solicitor will need to have draft contracts ready for you and the vendor to sign.
At this point:
- Your solicitor should have completed all of the local searches, the surveyors report should be complete and have been accepted by all parties,
- You should have a formal mortgage offer in writing which you have read and understood,
- You have the agreed deposit available,
- You have agreed a firm completion date for the sale and this is noted in the contract and there are no outstanding issues remaining to be settled between you and the seller.
- When you have signed the contract, your solicitor will deliver it to the seller's solicitor in exchange for the contract the seller has signed. From this point both you and the seller are legally bound to the deal.
All that remains after exchange of contracts is to pay the monies needed to buy the property, less any deposit already put down at exchange, on the agreed date. Your solicitor will receive the funds direct from your lender and the remainder from you, and then pass it onto the vendor's solicitor.
Once the payment has been confirmed the estate agent will release you the keys. Your removal men should have already been booked from when you found out the completion date and this time should have been used to get everything sorted before they arrive.
The best way to do this is to decide what will be going where in your new home and then label each package with a list of the contents and where you want it to go. Remember to pack the important items, such as champagne flutes, where you will be able to find them quickly and easily!
In the last couple of weeks before you move contact utility providers to let them know you will be moving out and arrange for readings to be taken. You may also want to contact the post office so they can re-direct any future mail. The council will also need to be notified so you are not liable for council tax at your previous address.
You're there! Now you can relax in your new home and start organising your house warming party!