Free Guide to Moving House
Introduction
Although the procedure for buying a new home is reasonably
simple, complications can arise when you are buying and selling.
Synchronising the exchange of contracts and agreeing an
acceptable date can be tricky and sometimes calls for patience
and ingenuity.
You will doubtless have read that moving house is one of life's
more stressful occurrences. Our job here at Glaisyers is to make
it as stress free an experience as possible.
Mortgages
If you require a mortgage, the first and most important advice
is to get independent advice from an Independent Financial
Adviser, or IFA who will have access to many financial products
and can provide immediate quotes from a variety of lenders to
suit your circumstances. Glaisyers will be happy to recommend
one.
You may also need mortgage protection insurance and a good IFA
will make sure you get the best deal.
It can take a number of weeks for a mortgage offer to be issued
as the lender has to survey the property and conduct credit
checks.
A Typical Transaction
Prior to considering a move there are a number of issues you
must attend to, namely…
Identification
If we have not acted for you before the Money Laundering
Regulations require you to produce forms of identification for
example a Passport or similar.
Inspection
A thorough inspection of the property is most important. You
should satisfy yourself prior to exchange of Contracts that the
property is to your satisfaction and in particular, that all
appliances, electrical, plumbing and heating systems are sound
and in good working order.
It will be too late afterwards.
When inspecting the property you should also take note of any
gates in the boundaries giving access to other properties. Such
a gate and path may reveal acquired rights of way by neighbours
that could prove to be a problem.
Planning
You must bear in mind that the Local Searches and Enquiries that
will be carried out with the Local Authority on your behalf,
only cover the property. It will not give information as to what
is happening in the neighbourhood with the exception of any
nearby road or rail schemes.
Buying in Joint Names
1. You can own the property as beneficial joint tenants so that
if one of you were to die the property would automatically
belong to the survivor. This arrangement would take precedence
over any will.
2. You can hold the property as tenants in common whereby you
would each own a share that would pass under the terms of your
wills. Your share may take into account the contribution each of
you made towards the purchase price of the property. You should
both make wills.
Initial Stages
Negotiation
You will negotiate the purchase price of your new house and
unless you are a first-time buyer, you will also negotiate terms
for the sale of your present one. However, nothing is binding
until the contracts are exchanged.
Draft Contract
The Seller's solicitor prepares a contract for the Buyer's
solicitor. For this purpose he will need to obtain the Title
Deeds to the property. If it is mortgaged these will be held by
the mortgage company as security. Once all the documents have
been received and the Draft Contract prepared, the Seller's
solicitors will send copies to the Buyer's solicitor for
approval.
Searches and Enquiries
The Buyer’s
solicitor will also carry out the local search, whereby standard
enquiry forms are sent to the Local Authority. So if you are
worried about any possible developments, drains, new roads,
boundaries, rights of way, restrictions, schools or even the
risk of flooding, please let us know as soon as possible so we
can put such questions to the seller.
Surveys
The Building Society only inspects the property to see if the
valuation is justified it is not a full structural survey.
Legally the Seller is not bound to give any guarantees as to the
condition of the property. In all cases we advise clients to
obtain a comprehensive survey report on the fabric and structure
of the building before exchanging Contracts. If you are applying
for a Mortgage you should speak to
the lender. You should not simply rely on the lender's
valuation. In older properties, a specific survey for woodworm
and damp is sometimes advisable. This may be recommended in the
survey and may be a condition of your mortgage.
The Mortgage
By this stage you should have received your mortgage offer from
your lender.
Insurance
The lender may arrange buildings insurance for you, but it may
be worth
‘shopping
around’
if your mortgage allows you to. If you are buying a leasehold
property it is likely that the landlord will insure it.
Your IFA may recommend Mortgage Protection Insurance which can
help if you are made redundant.
Exchange of Contracts
Up to the exchange of contracts nothing is binding. The Seller
can still sell his house to somebody else. For example he may
receive a higher offer from another Buyer, in which case you
have been "gazumped". Alternatively, he may have issued more
than one contract and is waiting to see who will exchange first.
This is called a
Contract Race.
You may also be involved in a chain where you have to wait for
all parties to be ready. Both parties are legally bound only
when the contracts are formally exchanged. We will always liaise
with you to confirm that you are happy to go ahead and that you’ve
agreed a moving date.
The Deposit
When the contracts are exchanged you will be required to pay the
deposit to the Seller's solicitor. This is usually 10% although
a lesser amount can often be negotiated.
Completion
Completion takes place after Exchange of Contracts; following
the official Title search and receipt of your mortgage money. We
will confirm to you the necessary funds needed for Completion,
either from the proceeds of your present house sale, from the
Mortgage Advance, from your own funds or a combination.
In simple terms, the Buyer's solicitor hands over the money and
the Seller's solicitor hands over the documents that transfer
the Title to the land. The Buyer can then move in.
Mortgage redemption
This means paying off any Mortgages on property you are selling.
If you are a first time buyer, this will not apply. We will
arrange for the Mortgage to be discharged, any Life Policies to
be re-assigned, if applicable.
Keys
Vacant possession is given when the keys are handed over. There
can sometimes be hold-ups if there is a 'chain'. Usually the
keys are lodged with the Estate Agent after the seller has moved
out until the money has been paid, after which the keys will be
released.
Leases
Most of these procedures also apply to flats. There is however
one important difference. With a flat you may be buying a lease.
Leases can be complicated in respect to pets, maintenance,
cleaning, repairs, ground rents, gardens, roofs, foundations,
car parking, insurances, neighbours and service charges. We will
discuss all the points set out in the lease with you.
After Completion
Stamp duty land tax will be paid, if applicable, then we will
deal with the registration of the Title at HM Land Registry.
Costs
Glaisyers will provide you with a statement of all costs before
completion. We will also gladly give you a quote of our fees at
the outset if you wish
–
we can also let you know the likely search, registrations and
stamp duty costs.
Certain things we leave to you…
-
Cancel your Building Insurance if you don’t
have a Mortgage
-
Make arrangements with the Removals Company by giving them a
provisional date
-
Cancel the Banker's Order for previous Mortgage instalments
after Exchange of Contracts
-
Cancel or transfer your contents insurance
-
Arrange for the continuation or disconnection of Gas,
Electricity and Telephone services. Have the meters read and
arrange for the accounts to be transferred
Who should you tell?
Here is a list of some of the people you may wish to inform…
-
Family, friends colleagues at work
-
Insurance companies - car, home, life, other
-
Utilities - electricity, gas, water & Local Authority –
Revenue department
-
Telephone companies (inc Mobile) - divert calls
-
Maintenance suppliers - for central heating or similar
-
DVLA - for driving licence and vehicle registration document
-
Magazine and other subscriptions, TV Licence centre
-
Regular deliveries - milk newspapers, solid fuel, oil, etc.
-
The Post Office - divert mail, national, savings, premium
bonds, etc
-
AA or RAC plus Clubs or other Associations
-
If you own a shotgun or other firearm - Tell the police
-
Passport Office (on renewal)
-
Banks & Building Societies & HP, Credit and store cards,
catalogues
-
Doctor, dentist, vet, optician, accountant, stockbroker
-
Schools, colleges, university
