Conveyancing guide

Conveyancing Guide

Welcome to our Conveyancing Guide (that's house buying to you & me!)

When we co-bought our house we used a company called Scott Fowler Solicitors, they are a really friendly bunch that can speak in plain English. And being the cool cats they are - they have kindly offered a

£100 discount on Conveyancing Services exclusively to all
Co-BuyWithMe.co.uk users, click here to contact Scott Fowler

Now whoever heard of a solicitor giving money away? Me neither - so act quick before they change their mind!!

They helped us create the Conveyancing Guide below, cheers guys!


Buying is easy when it's taken one step at a time:

1.   Negotiating - think Gordon Gecko, think Wall Street, you are a winner!
2.   Deposit - - how full is your piggy-bank?
3.   Draft Contract
4.   Final Contract - with a fine toothcomb...
5.   Searches
6.   Fixtures & Fittings - will it still look pretty without its' makeup on?
7.   Surveys - '...and the survey says...'
8.   Mortgage - how's your figure?
9.   Exchange of Contracts - time to swap rings!
10. Deposit - have your money ready
11. Leasehold & Freehold? - lets get this cleared up
12. Completion - you're on the home run!
13. Costs - how to reduce your conveyancing fees
14. Payment of Costs - time to cough up the cash!

1. NEGOTIATING - think Gordon Gecko, think Wall Street, you are a winner!

You've been through the Co-Buying Guide and found your Co-buying buddies and got a mortgage offer. And now you've found the house of your dreams - woohoo! You now need to make an offer and negotiation is expected - you could save thousands.

Ask the agent how long has it been on the market for? Are they keen to sell? If you are not in a chain let them know as many Vendors (the Seller) prefer this.

When negotiating the terms of the purchase in writing always include the phrase “Subject to Contract” this means if there is anything in the contract you don't like you can negotiate the terms or retract your offer (this may vary outside of England, like Scotland for example).

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2. DEPOSIT - how full is your piggy-bank?

Having agreed the terms of your purchase, “Subject to Contract”, the Vendor will sometimes request you pay a preliminary deposit to show “good faith” to his Agent or Solicitors who will act as “Stakeholder Subject to Contract”. This is not the full deposit that is paid upon exchange of contract. Therefore we would recommend:

(a) that the preliminary deposit is not more than £250.00 and

(b) that you obtain a receipt and

(c) that the receipt states that the deposit is paid “Subject to Contract” and is deducted from the main deposit.

Remember Co-buyers; that this is not a legal requirement only a customary practice - so if it's not asked for - don't offer it!

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3. DRAFT CONTRACT

At this stage the Vendors Solicitors prepare a contract for the Buyers Solicitors (that's you co-buyers!). For this purpose they will need to obtain the Title deeds to the property which are either held by the Lender or by the Sellers - you don't need to worry about this - your solicitor will handle all that.

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4. FINAL CONTRACT - with a fine toothcomb...

Once the deeds and any other relevant documents have been received and the contract has been prepared, the Vendors Solicitors will send you the contract and accompanying papers for approval.

You then go through the contract in detail (no midnight skim reading here people!) and approve/amend as necessary and send one copy back to the Vendors Solicitors to sign. But remember, as co-buyers you all need to review this document so that all co-buyers involved are happy with the terms. It is this contract that is later exchanged and then the transaction becomes legally binding. Exchange of contracts is dealt with further on in this guide.

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5. SEARCHES

The Co-Buyer’s Solicitors then carry out the necessary searches and enquiries. These are enquiry forms that are sent to the Local Authority, Water Authority and Environmental Agency to find out what is happening in regards to your property.

The searches usually take between 1 & 2 weeks and your solicitor will normally instruct these to be done early on in the process to ensure the search results arrive prior to exchange of contracts.

The Searches reveal information that only relates to your specific property. If you are worried about possible developments, drains, new roads, boundaries, rights of way, restrictions or even the risk of flooding, you need to instruct your solicitor to make specific enquiries on your behalf.

The purpose of the searches is to check that there are no claims against the property by the Local Authority such as new traffic schemes or unauthorised extensions. From the water authority that all drainage connections exist and if applicable from British Coal/Tin Mining that there is no mining history under or in the neighbourhood of the property.

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6. FIXTURES & FITTINGS - will it still look pretty without its' makeup on?

You've viewed the property and it looks great, especially with the furniture and other bits the Vendor has on show - BEWARE! These are not usually part of the deal.

Anything that is fixed permanently to the house (i.e. engineered or carpentered such as central heating, baths and built in cupboards) is normally sold as part of the property. The Vendor and the Co-Buyer should both know exactly what items are being included & excluded and the Seller will provide your solicitor with a list, which you need to check carefully prior to exchange taking place.

If you fall in love with something, ask about it. It can be part of the deal or even bought separately (I tried to buy a piano from a house we didn't even put an offer in on! Terrible property - but great piano...)

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7. SURVEYS - '...and the survey says...'

You wouldn't buy a car without a test drive - so why co-buy a house without getting it checked out?

Don’t rely on the Lender’s Valuation (that's the one the mortgage company sends round). This is purely a valuation to see if the property is worth what you are paying and is required before the mortgage is granted, these are rarely in depth and is NOT A FULL structural survey, you can sometimes request a more in depth survey from the Lender for a higher fee - yes, that's right, you also get charged for their surveyor, so splitting the costs between your co-buyers will help.

Please be aware that the Seller is not bound to give any guarantees to the condition of the property and you purchase as seen! So we usually recommend at least an R.I.C.S. (Royal Institute Chartered Surveyor) Home Buyer’s Report or with an old property it may be necessary to have a full structural survey carried out. This will obviously involve more expense but could save you a lot of money in the long run.

If the surveyor finds that work needs to be done to the property then it should be possible to negotiate a lower price with the Seller or request the Seller have all the work carried out prior to the completion.

Use it to your advantage.

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8. MORTGAGE - how's your figure?

By now you will have received written confirmation of your mortgage advance from the Lender.

Please be aware that the mortgage can sometimes take the longest time to process and should be organised as soon as you are happy that the transaction is going to proceed.

There are hundreds of mortgages out there and you should choose wisely, for help, speak with a couple of lenders directly or speak with a mortgage broker - tell them your situation and they can advise you accordingly.

One specific point for co-buyers - review the mortgage company's payment protection; see if all co-buyers are covered, if not, you should read our insurances guide

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9. EXCHANGE OF CONTRACTS - time to swap rings!

Up until the point of exchange nothing is binding for either the Vendor or Buyer. All you have is a gentleman’s agreement. The Seller can still sell the property to somebody else (known as gazumping) and you can still walk away from the transaction. Once contracts are exchanged all parties are legally tied into the Contract. The Vendor contracted to sell to you and you contracted to buy from the Vendor.

Contracts should only be exchanged when you and all the co-buyers are happy to proceed and all queries answered and your solicitor has your deposit monies.

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10. DEPOSIT - have your money ready

When the contracts are exchanged this usually happens by all solicitors involved in the chain of transactions speaking to each other under a determined formula by telephone, the deposit (which can vary widely from 25% to 0% of the purchase price) is payable to the Vendors Solicitors.

The amount of deposit you will need is usually determined by how much you and the other co-buyers can afford to raise and what the mortgage company requires. This will also be reflected if it is a buy-to-let property as you will usually need a minimum of 15% deposit.

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11. LEASEHOLD & FREEHOLD? - lets get this cleared up

Leasehold - is in essence a long-term rental contract from 1 year to 999 years. When the lease starts to expire you need to get it renewed and this will cost you - how much I hear you ask, well I don't know so find out before you buy the property, your agent or solicitor can make the enquiries for you. Most apartments and flats are leasehold and around 75-90 years is a normal length anything more is great - but always check this out.

Freehold - you are now actually buying a share of the building and/or the land - most houses are freehold.

Most of the procedures for house buying also apply to flats.

Leases tend to be a bit more complicated but requires less responsibility from you and it covers such things as pets, maintenance, cleaning, repairs, ground rents, gardens, roofs, car parking, foundations, insurances, neighbours and service charges. Your solicitor will of course, discuss all the points set out in the lease during the transaction.

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12. COMPLETION - you're on the home run!

Between exchange and completion of the transaction your solicitor shall be dealing with:-

a) Proof and investigation of title

b) Preparation and signing of all deeds

c) Searches at the Land Registry to make sure that the Seller’s title is consistent and updated against documents produced

d) Applying for and obtaining mortgage advance (at least 5 working days required by Lenders)

e) Making sure that all monies will be available on the completion date

f) Preparing and submitting bill and completion statement for your assistance

Generally completion takes place between 1 and 2 weeks after exchange of contracts has taken place

On completion itself the balance of the purchase monies are transferred to the Seller’s Solicitors and once they receive funds they will then telephone the Estate Agents to confirm that the keys may be released to you.

At this stage you will normally receive a telephone call to confirm the completion has gone through and that you can then collect the keys – your new home is yours!

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13. COSTS - how to reduce your conveyancing fees

Payments are worked out on established scales. Your solicitor will be able to advise you of the costs involved when you make your initial enquiries. But just like getting a taxi anywhere in the world - agree the price before you get in.

Normally the whole package (Searches, Stamp Duty, Land Registry fees, solicitors time, etc.) costs around £600.

Although Scott Fowler have exclusively offered a £100 discount for all Co-BuyWithMe users, to use Scott Fowler contact them here.

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14. PAYMENT OF COSTS - time to cough up the cash!

Solicitor fees become payable just prior to completion at the same time they collect from you the disbursements such as stamp duty etc. and (if the property is leasehold) any apportionments of service charges and ground rent which may be due to the Seller.

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GOOD LUCK!