Moving Process - It's Your Move

YOUR MORTGAGE

You should apply for your mortgage at the earliest possible stage.
If you have not arranged your own mortgage we may be able to help you to do so. It is advisable to have your mortgage arranged and have a letter of acceptance in principal from the chosen lender before committing time to search for your new home. Having the mortgage in place will enable you to know your limitations and maximum budget together with repayments and other important financial information. This should help you to make the right informed decision when placing your offer forward when you find your new home to be. Your Solicitor will require written confirmation of your mortgage before he can exchange contracts on your behalf.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

NEGOTIATIONS

Unless you are a first time buyer you will also hopefully be negotiating the terms of the sale of your present home at this time. Most home sellers, but not all, may consider taking an offer on the asking price. This offer must be realistic, and often close to the asking price and of an amount that you would be financially able to meet and happy to pay. The offer will always be presented to us and negotiations will be made on behalf of the Vendor and Purchaser. When an agreeable figure is reached we will notify the Solicitors of both parties including in all the details required for both legal representatives to progress forward.

SURVEYS

If you are obtaining a mortgage, your Bank/Building Society will normally arrange for a valuation on the property. If you wish to have a full survey, many Banks and Building Societies may, for an additional fee, arrange for the same Surveyor to carry out a more thorough inspection of the property. Alternatively, you may wish to have an independent Survey through your chosen Surveyor.

SEARCHES

It is important that you consult Solicitors as soon as possible after a price has been agreed. We will always notify your solicitors with the information they require and ask you to make payment and instruct them at the earliest stage. They have to make various searches and enquiries on your intended property and local searches in particular can be the cause of considerable delay. If in addition if you have a property to sell, then your Solicitors will have to obtain your Title deeds from your Bank/Building Society and this again can cause delays unless they are advised early on. If you do not have your own Solicitors then we will be happy to recommend a firm to you.

FIXTURES & FITTINGS

We would suggest that a list is made of everything which you have agreed to be included in your sale or purchase. The Vendor will normally clarify in writing the items that are being included via solicitors.
This may include items such as curtains, carpets, kitchen appliances, light fittings etc.

EXCHANGE OF CONTRACTS

This is when the Purchasers Solicitor sends a signed Contract and deposit to the Vendors Solicitor who “exchanges” the Vendors Contract in return.
Until this takes place neither party is committed to the other and therefore the Vendor is still at liberty to sell his property elsewhere, usually for a higher price. This is called gazumping. Alternatively a Purchaser can still decide to withdraw, as a result of having found a more suitable alternative property. Contracts should not normally be exchanged until all of the previous stages in this guide have been satisfactorily dealt with and your Solicitors will undoubtedly endeavour to reach the exchange of contracts stage as quickly as possible on your behalf. One of the problems which can delay exchange of contracts is where there is a chain of transactions in which nobody wants to exchange contracts on the house they are buying before they can exchange on the one they are selling. Usually this happens where one of the links in the chain is having difficulty in getting a mortgage or cannot sell their own property quickly. In this situation everything comes to a grinding and frustrating halt. Obviously should you find yourself in this situation we will do everything possible to minimise the delay. However the truth is that usually everybody must wait until the last party in the chain is in a position to proceed. When exchange of contracts has taken place a completion date will normally be agreed.

THE DEPOSIT

As we have previously mentioned when contracts are exchanged a deposit on the purchase price must be paid to the Vendors Solicitors. The deposit is normally 10% of the selling price although sometimes a smaller deposit can be agreed.

FLATS

All of the procedures for house buying also apply to flats. There is however an important difference. With flats the title will generally be leasehold. Leases tend to be both long and complicated and contain numerous restrictions and obligations as to how you can use and treat the property. Included in these will be repair and maintenance obligations, service charges, ground rents, parking and control of such things as pets, musical instruments and other possible causes of nuisance and annoyance. The purpose of all these is for the mutual protection and tranquillity of all of the residents involved. Leases can vary considerably and your Solicitors will of course advise you thoroughly on your particular lease.

INSURANCE

This becomes the Purchasers responsibility as soon as Contracts are exchanged. Normally the Building Society or Bank or Insurance Company who are providing your mortgage will attend to this but if you are not obtaining a mortgage the property must now be insured against fire and the usual perils. If required we will be happy to arrange this insurance for you. With leasehold property it is likely that the Landlord will deal with the insurance arrangements and will simply account to you directly for the premium.

COMPLETION

Usually Completion will take place between 14 and 28 days after exchange of contracts. During this interval the Purchasers Solicitors will be involved in investigating the Vendors Title Deeds, making additional searches, preparing the Conveyance/Transfer, reporting on the Title to the Bank/Building Society and obtaining the mortgage cheque, arranging for all necessary deeds to be signed and finally preparing a completion statement and obtaining the balance of the monies required to complete from the Purchaser. The Vendors Solicitor will be involved in dealing with the Purchasers Solicitors, requisitions on Title, obtaining the redemption figure from the Vendors Bank/Building Society, liaising with the Selling Agents, approving the draft Conveyance/Transfer Deed and preparing a completion statement for the Purchasers Solicitors which will include, where necessary rates, rent, insurance and service charge apportionments calculated apportionments calculated to the completion date, and arranging for the Vendors to sign the Conveyance/Transfer Deed. When completion takes place the Purchasers Solicitor hands over to the Vendors Solicitor the balance of the purchasers price in return for the Title Deeds and keys (on occasion you may be asked to collect the keys from us) having made sure of course that the property has been vacated and is ready for the Purchasers to move in immediately.

COMPLETION STATEMENT

As soon as possible after exchange of contracts your Solicitors will prepare their completion statement and forward this to you. This will show you how much money they will require from you in order to complete your purchase on your behalf and will include such items as the balance of any purchase monies, which are to be paid by you, their legal fees and disbursements stamp duty and Land Registry fees (where appropriate). Please ensure that your Solicitors have your cheque for such monies as are required where possible at least seven days before actual completion date so that this can be cleared.

DON’T FORGET

1. To have your gas and electricity meters read before vacating your own property.
2. To apply for electricity, gas and telephone services to be continued in your new home otherwise these might be disconnected.
3. To cancel your building insurance if you do not have a mortgage on your previous home.
4. To cancel your Bankers Order in respect of your previous mortgage.
5. To instruct a removal firm at the earliest possible date after contracts have been exchanged and completion date fixed.
6. To advise the General Rates and Water Rates Authorities of your move as you may be entitled to a refund.