A Guide to Buying and Selling
Understand the Buying and Selling Process
Embarking on the journey of buying and selling property can feel overwhelming. We have extensive experience in residential property transactions, and we are here to provide support, clarify the process, and protect your interests every step of the way.
The process of buying and selling a house can be one of life’s most stressful experiences. For more than 65 years, we have been assisting clients with buying and selling transactions and our team provides reassurance while clearly explaining each step involved in the process.
From initial listings to the exchange of contracts, we are here to offer support and advice.
The Importance of Choosing the Right Estate Agent
We have established relationships with many local estate agents, so are well-placed to work effectively alongside them.
Selecting the right estate agent is essential in the process of selling your current home. While it may seem expensive, a good estate agent provides several valuable services:
- Effectively markets your property.
- Arranges viewings with potential buyers.
- Negotiates offers.
- Works closely with your conveyancing lawyer and the buyer’s lawyer.
How to Prepare for Buying
Preparing to buy a new property involves more than just finding a place you like.
Before committing, it is essential to obtain a survey to uncover any potential hidden problems. It is prudent to go beyond the valuation report provided by your mortgage lender and consider a more detailed assessment. For older properties, consider a complete structural survey, for added peace of mind and assurance.
Navigating the Property Chain: Offers, Negotiations & Breaking the Chain
Let to Buy is when you switch the mortgage on your current home onto a Let to Buy mortgage and rent it out. It is also another way to break a house chain. You can also release equity when you do this, which you can use as a deposit on your new home.
Managing Offers and Negotiations
When you are selling your current home, naturally, you will want to consider the price offered, but you will also want to think about the potential buyers’ circumstances, too. When you accept an offer, ensure it aligns with your goals for buying and selling property. A conveyancing lawyer can help navigate this process.
What To Do When You Accept an Offer
After accepting an offer on your property, it is essential to keep the momentum going. Your conveyancing lawyer will send the draft contract to the buyer’s lawyer, initiating the conveyancing process. You will need to complete property information forms, providing the buyer with essential details about the property you’re selling.
Prepare for Buying: Steps to Take
When you are selling a home, you must decide whether to use an estate agent or find a buyer independently. Once you accept an offer, promptly inform your lawyer, who will obtain the title details for your property and prepare the contract for the buyer's lawyers. As part of the sales process, you are required to provide the buyer with an Energy Performance Certificate (EPC). This certificate helps the buyer understand how energy-efficient the property is.
To ensure a smooth and efficient transaction, ensure that this certificate is available at the beginning of the sale process.
When buying and selling a house simultaneously, understanding your finances is a crucial next step. You will need to determine how much you can afford to pay for your next home. If you are selling a house with a mortgage, you need to understand how much equity you have in your current home.
You will need to pay a deposit when you exchange contracts on the property you want to buy, and for this there are two options available to you.
This means you can pay the deposit using fresh funds from your savings or a bank account. This option is straightforward and involves transferring the specified amount directly to the seller or their representative as part of the transaction.
Alternatively, you can use the equity from your current property to cover the deposit. In this case, the value of your existing home can be leveraged to provide the necessary funds.
This typically involves transferring a portion of the equity from the sale of your old property into the deposit for your new purchase. To do this, you’ll need to coordinate with your real estate agent or legal representative to ensure proper documentation and fund transfers are in place.
When selling a house with a mortgage, it’s important to consider that switching to a new mortgage deal may incur additional costs, such as an early redemption charge on your existing mortgage. It’s essential to confirm the specifics of these charges with your current mortgage provider. A mortgage broker can help you assess whether it’s better to remortgage or port your existing deal, taking these potential costs into account.
The latter involves transferring your existing mortgage to your new property. However, even if you can port your mortgage, you may find a better deal with a new mortgage and lender.
You need to factor in additional costs, such as stamp duty, when you buy a new home. In many cases, you will be able to absorb this within your mortgage borrowing unless you’re a cash buyer. It can be a substantial cost, so you need to be aware of it.
There will also be estate agent fees for selling and a range of conveyancing fees to process the legal transaction of buying and selling.
The Role of Conveyancing when Buying or Selling
Conveyancing is the legal process of transferring property ownership from one party to another. It encompasses all the necessary steps to complete a property transaction, whether you are buying or selling, including drafting contracts, conducting searches, and handling the exchange of funds.
A conveyancing lawyer ensures that all legal requirements are met, protecting your interests throughout the buying and/or selling of a house.
Key Steps in the Conveyancing Process
When you are buying a house, your conveyancing lawyer will need to conduct local searches before any contracts can be exchanged. These searches reveal essential information about the property you are considering buying, such as planning permissions or environmental issues.
The Final Steps: What to Know
Completion day marks the end of the selling process and the beginning of a new chapter in your new property.
Preparing involves several key steps to ensure a transition. You should coordinate with your conveyancing lawyer to finalise all financial transactions and paperwork, including transferring funds and signing relevant documents. You should also communicate with removal services to coordinate logistics and ensure a smooth move.
Post-Completion Tasks
After completion day, several important tasks must be addressed. These post-completion tasks include arranging for meter readings, notifying people of your new address, and arranging for the Post Office to redirect your mail to your new address.
Your conveyancing lawyer will handle the registration of the property with the Land Registry and ensure that all stamp duty is paid. Making these final arrangements will help you settle in more easily.
How We Assist You
The Residential Property Department at Dutton Gregory has been helping to take the stress out of buying and selling property for over 65 years.
Our team are fully equipped to thoroughly advise you on the best ways to do this, whether that is buying the property with someone else or planning your taxes.
We would be happy to discuss the process with you and explain the steps involved.
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