Latest news with #propertyPurchase
Daily Mail
28-06-2025
- Business
- Daily Mail
I'm a first-time buyer - what is conveyancing and how much does it cost?
I'm looking at flats to buy but am a first-time buyer and have a lot to learn. I hear a lot about the conveyancing process, yet I'm not 100 per cent sure how it works or what's really involved. All I keep hearing is that it can be drawn out and costly. Can you tell me more about the conveyancing process and how I can ensure everything goes smoothly? Jane Denton of This is Money replies: It is essential you understand the conveyancing process. You need to know what you will be paying a solicitor or licensed conveyancer to do. You may also want to read our complete guide to buying your first home. Conveyancing is the legal means of transferring the ownership of a property from a seller to a buyer. The process starts once a seller accepts an offer from a buyer. Most buyers and sellers appoint a solicitor or licensed conveyancer to carry out the conveyancing process for them. It is possible to go it alone and do what is known as DIY conveyancing, but this is very risky and could end up costing more in the long run. If you opt for a solicitor, have a look at the Law Society's website to help you select one dealing with property sales. Before appointing a solicitor, check they are registered with the Law Society. Don't feel pressured to go with a conveyancing or legal expert recommended by the estate agent you are dealing with. You should get fee quotes from a few different solicitors or licensed conveyancers. Fees can vary significantly. Fixed fees are available, but unexpected charges can still crop up. Know the costs involved According to the HomeOwners Alliance, the average conveyancing fee for a house in Britain is £2,380, including disbursements. Disbursements are costs incurred by the conveyancer, which the client pays them back for - for example, the cost of accessing information on the Land Registry. The costs involved can vary by location and the value of the property. Conveyancing is the area of law that draws the most complaints, according to the HomeOwners Alliance, meaning it is important to find the best expert you can afford. Look for reviews, experience and responsiveness before instructing an expert. Once you have instructed a conveyancing expert, they will undertake identity and anti-money laundering checks, before requesting certain documents like the draft contract for the property's sale from the seller's solicitor. Your conveyancing professional will check the draft contract and flag any potential concerns or amendments. They will speak to you about any concerns over things like service charges, ground rents or leases, if applicable. Early on in the conveyancing process, get a survey arranged for the property you are buying. If there are significant issues flagged by the survey, you may be able to renegotiate the price. Your solicitor will complete a number of 'property searches' for you. These will dig out any potential issues like major planning developments planned nearby, flood risk and any restrictions on the land. Sometimes issues or concerns crop up and delay the conveyancing process. Neither you nor the seller are legally tied in to the sale until contracts are exchanged. The conveyancing process is only finished when you complete on the property and get the keys for it. You might have to wait a while before your name is added to the deeds via the Land Registry. The conveyancing process typically takes 12 to 16 weeks, but it can be longer. I have asked a solicitor to delve deeper into what the conveyancing process is and how it works. 'Conveyancing is like running a marathon' James Naylor, a partner at Naylor Solicitors, says: The conveyancing process is complex, laden with legal terminology, regulatory checkpoints, and substantial financial implications. For most individuals, it represents the most significant financial undertaking of their lives. To demystify the process, imagine conveyancing as running a marathon, rather than a sprint. The marathon begins when your offer is accepted. The estate agent sounds the starting gun by issuing a memorandum of sale - think of this as the official start of the race. At this point, the route is mapped out, but nothing is legally binding; you are merely at the starting line, warming up. Your solicitor opens a file, verifies your identity, and determines whether you are running solo or as part of a joint purchase. You will be asked to provide initial funds for expenses. If you require a mortgage, this is the first major checkpoint. Your lender will assess the property valuation and may set conditions. Your solicitor acts as your coach and referee, ensuring you adhere to the rules and avoid disqualification. Legal searches are akin to checking the marathon route for hazards. Anything from planning issues to flood risks could crop up. A surveyor inspects the property itself, ensuring there are no structural or other weaknesses that could cause you to stumble. The seller's solicitor drafts the contract and responds to standard pre-contract enquiries. As you are likely to be purchasing a leasehold property, expect additional paperwork and the involvement of the landlord or managing agent—these are the hills and bottlenecks that can slow your pace. Once all due diligence is complete, you approach the final stretch. You sign the contract and pay the deposit. Upon exchange, you are committed to finishing the race— and, subject to some nuances, there is no turning back, even if you hit the proverbial wall. Completion day is the finish line. You pay the remaining balance, receive the keys, and officially cross into home ownership. After the race, your solicitor handles the post-completion formalities: paying any Stamp duty Land Tax due and registering your ownership with the Land Registry. You receive your medal in the form of title deeds. Your race is run, and you are a homeowner. Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
Daily Mail
04-06-2025
- Business
- Daily Mail
A new-build, freehold house comes with a £750 service charge: Should I walk away?
I'm looking at buying a three-year-old house on a gated development made up of seven houses. The house is a freehold property, but has an estate management charge for the communal areas, comprising a small green space and a pair of electric gates. The charge is £750 a year but the documentation from the management company gives very little detail. Should there be some detail around how much the charge may increase each year, and how to dispute any charges? Also, I looked up the management company on Companies House and it says it has been dissolved. Should I continue with the purchase or call it a day? Ed Magnus replies: Estate management charges, also known as estate rent charges, have become an increasingly common feature of new build estates. The charge is bound to each property through the title deeds. Sometimes the charge may seem reasonable. However, often it can seem like you're paying money for almost nothing. The charges tend to cover any communal gardens or lawns, private roads, pavements, car parks and play areas located within the new housing estate. In the past, the local authority might have provided these services - but when new housing estates are built, councils don't have to take responsibility for them. This means the residents must fund it themselves. In your case, it's just for a small green area and a pair of electric gates, so £750 seems rather steep. With seven homes, that adds up to £5,250 per year. > We've found a leasehold flat: Should the inflation-linked ground rent put us off? Owners of at least a million newly-built homes face paying these estate charges, according to the Homeowners Alliance, often with no way to challenge them or to take over the management themselves. This is a particular concern when buying a property as you don't want to see an annual charge balloon. While leaseholders in England and Wales have a statutory right to challenge unreasonable service charges, freeholders do not currently have an equivalent statutory right. It is possible to dispute the charges in a county court. However, most people won't have the resources to do so. The fact that the management company has also been dissolved on Companies House is also a major cause for concern. For expert advice, we spoke to Clive Scrivener - a partner at Scrivener Tibbatts and a member of the Association of Leasehold Enfranchisement Practitioners. Clive Scrivener replies: While such charges aren't unusual, there are several areas you must be aware of. You mention that the management company responsible for these shared areas has been dissolved according to Companies House. This raises the question about who is now responsible for maintaining the communal areas, how funds are being managed, and what happens if repairs are needed. Without an active management company, you may be left with unclear or unfair responsibilities, especially if management responsibilities are being split between neighbours or disputes arise. A well-run residents management company will be able to provide you with a service charge budget, service charge accounts every year, a maintenance schedule and possibly a future planned and preventative maintenance plan. The service charge budget and accounts would show actual expenditure, and the management company would be able to provide invoices and receipts for expenditure on request. Your solicitor should investigate the current status of management arrangements, any legal obligations tied to the property, and whether a new management company has been appointed or if residents are now self-managing. You should establish who has legal title of the communal land. If the management company has been dissolved and does own the land, then this title could have gone 'bona vacantia' (ownerless) and would pass back to the Crown. You would then have to contact the Crown Estate's solicitors to apply to acquire the company or land back. This can be a costly and lengthy process. We recently advised on this exact situation for a new development of eight houses where the communal roads and green spaces had reverted to the Crown Estate due to the management company (owned by the original developer) failing to file accounts and therefore being dissolved. You will need to establish who is ultimately responsible for these communal areas and if there is any cost liability to you associated with it before purchasing the house. This situation is increasingly common in modern developments where there are private roads, green spaces, pathways and gates which are managed at residents' expense. Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
The Independent
21-05-2025
- Business
- The Independent
How first-time buyers are getting a £50,000 lifetime ISA boost revealed – but there's a catch
First-time buyers are increasingly utilising Lifetime ISAs (Lisas) to bolster their deposits, with some contributing over £50,000 towards their property purchase in 2022-23, according to HMRC data obtained by money app Plum. Designed to support both first-time homeownership and later-life savings, Lisas offer a significant government bonus. An analysis of authorised withdrawals – those eligible for the bonus – revealed that the top 25 Lisa withdrawals for home purchases averaged £51,000 during the last financial year. The data further highlights the growing popularity and impact of Lisas. Over 42,800 withdrawals for home purchases were for at least £10,000, with over 11,200 exceeding £20,000. The Lisa scheme allows individuals to save up to £4,000 annually until age 50, receiving a 25 per cent government bonus on their contributions, capped at £1,000 per year. This incentive makes Lisas an attractive option for those looking to step onto the property ladder. If savers make withdrawals for any other reason than buying their first home or saving for later life face a withdrawal charge of 25 per cent. And there is another crucial catch: if someone is using a Lisa for their first home, the property must cost £450,000 or less. Rajan Lakhani of Plum, which is offering a 4.75 per cent Lisa rate, said: 'Against a backdrop of recent global volatility it's reassuring to know the Lifetime Isa can deliver stunning gains, regardless of the broader economic outlook. 'And don't forget that this Government boost comes in addition to any interest you earn on savings.' As part of its Lisa launch, Plum has created a digital tool to give savers an indication of how long it could take them to build the deposit necessary for a starter home in their desired postcode. Speaking to MPs earlier this year, money expert Martin Lewis criticised the Lisa's property price condition, calling it a 'major hole.' This is because, as house prices rise, more first-time buyers are looking to purchase properties over this threshold. But in this scenario, they must give back the 25 per cent 'interest' from their Lisa. This creates a major issue, he told Treasury Committee in February: 'Many people think that if you add 25 per cent and take off 25 per cent you get back to where you started. You don't. You end up with 6.25 per cent less than where you started.'
Yahoo
21-05-2025
- Business
- Yahoo
How first-time buyers are getting a £50,000 lifetime ISA boost revealed – but there's a catch
First-time buyers are increasingly utilising Lifetime ISAs (Lisas) to bolster their deposits, with some contributing over £50,000 towards their property purchase in 2022-23, according to HMRC data obtained by money app Plum. Designed to support both first-time homeownership and later-life savings, Lisas offer a significant government bonus. An analysis of authorised withdrawals – those eligible for the bonus – revealed that the top 25 Lisa withdrawals for home purchases averaged £51,000 during the last financial year. The data further highlights the growing popularity and impact of Lisas. Over 42,800 withdrawals for home purchases were for at least £10,000, with over 11,200 exceeding £20,000. The Lisa scheme allows individuals to save up to £4,000 annually until age 50, receiving a 25 per cent government bonus on their contributions, capped at £1,000 per year. This incentive makes Lisas an attractive option for those looking to step onto the property ladder. If savers make withdrawals for any other reason than buying their first home or saving for later life face a withdrawal charge of 25 per cent. And there is another crucial catch: if someone is using a Lisa for their first home, the property must cost £450,000 or less. Rajan Lakhani of Plum, which is offering a 4.75 per cent Lisa rate, said: 'Against a backdrop of recent global volatility it's reassuring to know the Lifetime Isa can deliver stunning gains, regardless of the broader economic outlook. 'And don't forget that this Government boost comes in addition to any interest you earn on savings.' As part of its Lisa launch, Plum has created a digital tool to give savers an indication of how long it could take them to build the deposit necessary for a starter home in their desired postcode. Speaking to MPs earlier this year, money expert Martin Lewis criticised the Lisa's property price condition, calling it a 'major hole.' This is because, as house prices rise, more first-time buyers are looking to purchase properties over this threshold. But in this scenario, they must give back the 25 per cent 'interest' from their Lisa. This creates a major issue, he told Treasury Committee in February: 'Many people think that if you add 25 per cent and take off 25 per cent you get back to where you started. You don't. You end up with 6.25 per cent less than where you started.'
