Conveyancing FAQ’s
Q. How long will it all take?
This depends on a number of factors that can vary considerably from case to case. A standard transaction, with no complications, will normally take about six to eight weeks. You should expect 5-7 weeks to get to exchange of contracts, at which point the transaction is legally binding and then another week between exchange of contracts and completion.
Please remember delays can arise for a number of reasons e.g. how many other properties are in the chain, problems getting mortgages agreed, waiting for information from the other sides lawyers etc. A general rule is the longer the chain the more delays there may be.
Q. How soon do I need to pay any money?
Usually if you are purchasing a property we will ask you for approximately £300.00 at the beginning to cover the search fees that will be paid out on your behalf. The balance of the price and our fees will be payable shortly before completion.
If you are selling a property you will not need to pay any money in advance.
The costs and agents fees will be paid out from the sale proceeds on
completion before any balance is sent to you
Q. Do I need a survey?
If you are obtaining a mortgage a valuer will inspect the property on
behalf of the lender this is simply what it says – A valuation of the current market value of the property, no more. You will probably not be able to rely on it if things go wrong.
For an extra fee you will usually be offered the option to arrange for the
same valuer to carry out a more detailed "Home Buyers Report". This can
be relied upon by you so if at a later date you find a problem that is not
mentioned in the report you will have some redress against the valuer.
If the property is quite old and you are particularly concerned about its
condition you can obtain a full structural survey report which is even
more detailed.
Q. What searches do you carry out and why?
There are five main types of searches that we can carry out:-
Local Authority Search
This reveals details of the planning history for the property and whether
the Council are aware of any breaches of planning, also any proposals for
new roads or traffic schemes, tree preservation orders, conservation areas
and any other matters within the Council's control that may affect the
property.
Drainage Search
This will show whether or not the surface and/or foul water drains run
into a public or private sewer.
Land Registry Search
This is carried out just before completion in order to find out if there
are new mortgages registered against the property that have not previously
been disclosed. If there are, then the buyers solicitor will obviously
require confirmation that these will be repaid.
Land Charges Search
If you are obtaining a mortgage the lender will ask us to carry out a search to make sure that are you are not bankrupt.
Environmental Search
It is recommended that all buyers should carry out an environmental search to see if there is any landfill or waste disposal sites in the area, if the property has been built on an old industrial site and whether there are any risks from contaminated land, toxic emissions, flooding, subsidence etc.
Q. When do I need to arrange buildings insurance?
Unless the building insurance is being arranged by your lender or it is a
leasehold property and the insurance is dealt with by the freeholder you
must arrange buildings insurance from exchange of contracts.
The amount of cover should be the estimated cost of re-building the
property if it burns to the ground which is not necessarily the same as
the current market value. If you had a survey or you are obtaining a
mortgage your surveyor or the lenders valuer will usually have
suggested a minimum amount of cover in their report
Q. What do we need to know if we are buying in joint names?
Most couples who are married or in a stable relationship purchase as
"joint tenants" which means that upon the death of one or other of them that persons half share will automatically pass to the other.
The alternative is to hold the property as "tenants in common" which means that each persons share is treated as being separate so that upon the
death of one or other of them his or her share will not automatically go
to the other but to whoever it has been left to in the deceased persons
will.
If you are putting unequal amounts into the property the person who is
paying the larger amount should be protected by a "trust
deed" which sets out the respective shares so that in the event of any
dispute or upon the death of one or other of parties in the future the
original intentions will be clearly recorded, if you require further advice please call us on 0845 260 5050.
Q. What is a telegraphic transfer?
There are different ways of transferring monies, all with different speeds and costs:-
Cheque – slow – banks advise to allow at least 7 days before treating a cheque as clear – Cost free
Bank draft – can be treated as cash. Cost £10 to £20.
BACS or bank giro credit – a payment through the bank – takes at least 3 working days to reach the receiving account – Cost normally free.
Telegraphic transfer – otherwise known as CHAPS or TT’s – same day transfer of funds through the bank. Costs £15 - £50 – the costs of us sending a TT is £35.25.
Q. How is Stamp Duty Land Tax (SDLT) calculated?
SDLT is calculated at 1% on prices between £120,000 to £250,000, at 3% on prices over £250,000 up to £500,000, and at 4% on prices over £500,000. Special rules apply for Transfers of Equity where the “price” is calculated as half the value of the outstanding mortgage plus whatever is being paid to the other party for the transfer.
Q. What is stamp duty disadvantage area?
Certain properties are exempt from stamp duty in certain areas up to the value of £150,000.00. We can check with the Inland Revenue to see whether the property you are purchasing falls within an exempt area whereupon no stamp duty will be payable if the price is £150,000.00 or less.
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