Get your paperwork ready on your property for sale Everyone now needs certificates, copies of guarantees and warranties to buy and sell.
An energy performance certificate is a must as it is a legal requirement for one to be available for buyers at viewing stage. You can buy these yourself - and it is worth checking out the cost as sometimes the agents add on a bit extra, but don't forget they do organise it all for you.
What can you borrow? Once you have an idea of all the buying and selling costs and what you need to buy your next property, you can then approach lenders - or better still mortgage brokers, such as Habito, Coreco, Ash-Ridge and Brooklands, as they can search all of the market, not just offer their own products.
Make sure you can always afford the mortgage, whatever happens. For example:
1. What happens when interest rates rise? 2. If you are sick and can't work? 3. If you are married and sadly get divorced?
What are the costs? 1. Legal fees can set you back anywhere from around £300 + VAT to over £1,000 + VAT. 2. A survey may cost you as little as £300 to as much as £1,500. 3. Stamp Duty is payable on properties worth more than £125,000 and increases incrementally depending on the value of the purchase. 4. There is a 3% additional Stamp Duty charge if you own two properties on the day you buy another. 5. You will need to pay buildings insurance before exchanging contracts. You will typically purchase this with contents insurance and it will usually be a few hundred pounds. 6. If you are using a removals company, monies will be payable before moving day, either as a deposit or in full and usually from £150 to over £1,500. 7. If you don't have too much stuff you may be able to just hire a van for around £100 or just use your own car for free.
Choose a legal company Being able to buy and sell and not have a break-down at the same time means you need to be very well organised.
If you are sure you are selling, get a legal company to start on the contract to sell your own home. This can save weeks of hunting certificates for building work, guarantees and warranties, and insurance papers.
All legal companies, lenders and agents will need proof of your identity such as a passport or driving licence.
Some key things to ask:
1. Do they offer fixed-rate conveyancing? 2. Will they meet you face to face as well as talk over the phone? 3. Do they have systems that will update you on progress? 4. Here is what a quote should include: Legal fees Searches Bank or money transfer fees Stamp Duty VAT
What this will tell you is how much similar properties to yours are selling and ones you would like to buy have sold for - it really is the most essential information you can have when buying and selling.
Find out if your property is in a postcode that is 'hot' or not via PropCast.
What are the costs?
Here’s are some links to working out the cost of moving up the property ladder:
Finding the right agent to sell your home is a skill - but one you can learn. Good agents will:
Price your property fairly from the start
Show you examples of other properties, similar to yours that have sold, saying how many viewings it took to secure the sale
Advise on what needs changing to sell the property faster and/or at a better price
Make sure you understand the process of buying and selling
Offer a 'sales progression' service which means they do al the chasing of anyone else in the chain
Here are our Top 10 Dos and Don'ts when selling your home:
Do not put your property up for sale just to see what you can get. It wastes your and everyone else's time.
Do make sure you tidy your property and make it presentable for buyers - no-one will offer a good price for a dirty property.
Don't leave any bare wires or jobs to be done on the property, it will distract people from the good points and you'll end up getting no offers - or just cheeky ones
Don't dictate what you think your property is worth, it is up to a buyer and an independent surveyor.
Do pose as a buyer of your type of property - you need to do some research before you choose an agent and decide on ho much to sell it for.
Do choose your estate agent very carefully and never sign their contract without checking it first - especially the small print.
Do work out what the minimum is you need to sell your property for, to ensure you can buy your next home or move on.
Don't automatically buy an Energy Performance Certificate (EPC) from an estate agent - buying it direct from an EPC company can save you £30 or more.
Don't keep your property on the market if you have fewer than 10 viewings and no offers in eight to 10 weeks. Your property is likely to be overpriced, unbalanced or near to something that is putting people off.
Do consider any offer that allows you to move on with your life.
Storing your belongings
If you are moving, then storage facilities can be an absolute saviour. If you are selling and need to - 'de-clutter' you can do so quickly, easily and cost effectively by storing what you don't need right now either via spare space friends and family may have or better still, in a separate, safe storage facility nearby.
There are lots of storage facilities available, but it's important to remember to choose one which is:
Questions should range from practical things like mobile phone reception and broadband speed to querying why the vendors are selling.
Always do a second or third viewing before making a decision! Bring a family member or fried for another perspective.
Help to Buy Equity Loan
With this scheme the Government lends you a percentage of the cost of a new build on an interest free loan for five years so you'll only need a 5% cash deposit and a low loan to value to purchase a property, giving you access to good rates.
In England equity loans are available to homeowners looking to move but the home you want to buy must be a new build built with a price of no more than £600,000, although the rules will restrict this to first time buyers in 2021.
You are not allowed to sub-let this home or enter a part exchange deal on your old home. You cannot own any other property at the time you buy your new home with a Help to Buy: Equity Loan.
The schemes are different for each country, so check out the rules in Wales and Scotland. Northern Ireland stopped new Help to Buy purchases in December 2016.
Most houses are bought on a freehold basis which means you own the property and the land it sits on and are responsible for all the maintenance and repairs.
Making an offer on a home can be quite stressful. It doesn't have to be though as today it is much easier as there is more information available on what similar properties have sold for.
Here are our top tips for making an offer:
Similar to selling, find out what the seller paid for the property using sold property price data via the Land Registry - you will then know if you are buying in a busy or slow market. TheAdvisory also have an excellent PropCast tool.
Find out what similar properties sold for in the last few months and use this as evidence to support your offer.
Work out what you can afford to pay ie deposit, mortgage costs and maintenance as described above.
Don't panic - only offer a fair price you can afford.
And don't forget, it's essential that any offer you do make is make in writing, 'subject to survey', so if you need to renegotiate afterwards, you can.
As you should know from buying for the first time, you will need to have buildings insurance in place prior to exchanging contracts but you shouldn't just pick any insurance offer.
Not all insurance companies are the same:
Some specialise in certain types of property and if you next to water or in a flood zone, some will not cover you so it is definitely worth checking you are using the right insurance company for your specific property and location.
Remember you have to maintain your property to a certain standard if you want to make a claim on your insurance in the future.
If you have problems with your roof and it turns out it's down to lose tiles you didn't fix or flashing which has failed, then your claim may fail.
If you are happy with your survey and the vendor is ready to move forward then your legal company and the sellers' will arrange for you to complete and exchange contracts, meaning the purchase will become legally binding. This is the point where you will be required to pay your deposit to the legal company.
Between the agent and the legal company, a date will be agreed for completion ie when you get your hands on the keys and move in.
CHAIN ALERT
If the person selling is waiting on their own purchase then things might be delayed - in this situation, called a chain, make sure you keep a calm head and stay in touch with the agent and legal company.
Want to know more about chains? Visit: ViewMyChain.
Moving home
Once you've got a completion date, there are a few things to arrange, such as shifting all your belongings, organising your change of address. We have a number of checklists, including the checks to make if you are buying a new build, to help you work through things, so make sure you take a look:
