- Find a property to purchase and instruct a conveyancer.
- Provide identification documentation and evidence of source of funding to your conveyancer (a leaflet detailing what is required will be provided by your conveyancer)
- If you are receiving a gift from a family member or friend to assist with your purchase you will need to provide full details of this gift to your solicitor – once those details are provided your solicitor will write to the person providing the gift requesting identification documentation and evidence of the source of funding for the gift - if you are obtaining a mortgage your lender will require this information also and your broker will advise accordingly
- You should arrange your mortgage if you have not done so already
- Sign and return conveyancers terms of business and provide conveyancer with money on account of searches. Your conveyancer will then be able to progress your purchase transaction forward
- Your conveyancer will receive confirmation of the purchase from the selling agents and make contact with the Sellers conveyancers
- Contract papers are received by your conveyancer from the Sellers conveyancer
- Your conveyancer applies for searches on your purchase. Searches are compulsory when purchasing a property with the aide of a mortgage. Searches are made with the local council and the water company and an environmental/flood search is undertaken on the property.
- Your conveyancer reviews the contract papers received from the Sellers conveyancers and raises enquiries with the sellers conveyancers
- Your mortgage lender will undertake a valuation of the property – you may wish to arrange for an independent survey of the Property
- Once your lender has carried out a valuation and approved your mortgage application You will receive a copy of your mortgage offer usually the same day as your conveyancer receives their copy from your mortgage lender
- Conveyancer will receive Search result
- Satisfactory replies to enquiries are received from the Sellers conveyancers
- Your conveyancer is now ready to report to you with the contract to sign ready to exchange of contracts
- Exchange of contracts is when the transaction becomes legally binding between you and the Seller and neither party can then withdraw from the transaction. It is on exchange of contracts that a completion date is fixed - the completion date is the date that all monies are passed over to the Sellers and you receive the keys for the Property
- All contracts provide for 10% of the purchase price to be paid on exchange of contracts - this is called a deposit - your conveyancer will request the monies from you – the quickest way would be to transfer the funds direct to your conveyancers bank account as directed by your conveyancer. If you are obtaining 95% mortgage finance a 5% deposit is usually agreed upon exchange of contracts
- If you are funding part of your deposit from a Government Help to Buy ISA you will need to arrange for that account to be closed and the closure statement provided to your conveyancer. Please note this process could take a few days to close your account and it will take up to 5 working days for the conveyancer to obtain the Help to Buy bonus confirmation from the Help to Buy agent in readiness for your purchase. If you are using a Lifetime ISA you will need to provide your conveyancer details to your ISA provider so they can issue the closure forms
- If the ISA bonus is not confirmed before the completion of your purchase takes place, those funds cannot be taken into account
- Please note that you cannot use the Help to Buy ISA bonus monies towards the deposit on exchange of contracts on your purchase – the ISA monies can only be used for completion of your purchase. However, lifetime ISA funds can be used towards the deposit.
- Your buildings insurance cover for the property must be put on risk from exchange of contracts
- Once the signed contract is in the conveyancers possession and they are holding cleared funds in their bank account for your 10% deposit, you are ready to exchange contracts on your purchase
- A completion date is agreed between you and your Sellers (and the rest of the other parties in the chain if applicable)
- Your conveyancer will speak to you / or email you for your authority to exchange once all parties are ready to proceed
- On exchange of contracts the completion date is fixed
- Your conveyancer will confirm that the exchange of contracts has taken place.
- You should contact the new utility companies to let them know the completion date for your purchase
- Any insurance policies – life, critical illness etc. should be put on risk from exchange of contracts
- Your conveyancer will then prepare your file for completion and apply for the mortgage monies from your lender to arrive - funds are requested the working day before completion of your purchase takes place to avoid delays in transferring money on your completion date
- Your conveyancers will then account to you for any monies that are due from you for completion of your purchase to take place - this will include the balance of your purchase monies, legal fees and third party expenses such as Stamp Duty and Land Registry fees – these monies must be cleared funds in your conveyancers bank account no later than the working day prior to completion of your purchase
- On the completion day your conveyancer will arrange for the purchase monies to be sent to the Sellers conveyancers - once the funds have arrived in the Sellers conveyancers bank account they will then confirm that the keys of the Property can be released to you
- The keys for the Property are usually collected from the estate agents office – we would suggest you speak to the selling agents who will call you to advise when the keys are ready to collect. Completion usually takes place around 2 pm on the day of completion.
If you would like any additional information please contact our conveyancing team on 01905 721600.