Buying a Property in England or Wales

Our step-by-step guide steers you through the purchase process and offers tips to help smooth the way.

On your marks: being prepared

Househunting can be stressful enough without being pipped to the post by another would-be purchaser, so you’ll need to be ready to swing into action the minute you find your ideal home.

With this in mind, here are some things to sort out before you start to arrange viewings.

1. Set a budget

Decide what you can afford, taking into account such factors as your savings, the amount you would be able to borrow, and how much you are likely to realise from the sale of your present home once any mortgage is paid.

As well as the purchase price, include in your calculations the other costs of buying a property, such as:

• Solicitor’s fees
• Land Registry fees
• Local authority search fees
• Stamp duty (payable, on a sliding scale, if the purchase price is £125,000 or above)
• Mortgage lender’s fees (for valuation, etc)
• Survey fees
• Buildings insurance
• Removal expenses

2. Arrange your finances

If you plan to use savings invested in an account requiring notice of withdrawals, plan ahead, to ensure you will be able to access your money when you need to without loss of interest.

If you intend to borrow, get a ‘mortgage in principle’. This means that provided you give your lender accurate information about your circumstances, and they are happy with the valuation on the property, they will lend you the agreed funds.

3. Decide on your requirements

In the light of the total amount available, work out whereabouts you would like to live, whether you want a new property or an older one, the number of bedrooms you need, and so on. Determine which of your requirements are ‘needs’, and which are ‘wants’. For instance, you may need three bedrooms but want a south-facing garden. To avoid frustration, disappointment and a lengthy search, be prepared to negotiate on your ‘wants’.

4. Choose a legal adviser

Although it is possible to handle the conveyancing yourself when buying most types of property, this can be a time-consuming task, and most mortgage lenders will insist on a professional being involved. Bear in mind that a professional can add value by advising you on such matters as how to reduce the risk of being gazumped.

You can use either a solicitor or a licensed conveyancer. The latter are sometimes, though not always, less expensive than solicitors. Recommendations from satisfied clients are a good indication of the service you can expect, so ask around. Obtain written confirmation of charges before entering into any agreement.

Throughout this article, references to a solicitor apply equally to a licensed conveyancer.

Get set: finding a property

You are now ready to start serious househunting. Estate agents, newspapers and magazines, the internet and relocation agents are all useful resources.

Make a list of your requirements, so you can evaluate how well each property you view matches up to them.

Go!...The purchase process

The checklist below outlines the stages involved in a standard property purchase, and shows the likely sequence of events. Note that the procedures for acquiring a newly built or off-plan property are different (see Buying Off Plan and New Build), as are those involved in purchasing at auction (see Buying at Auction).

The introduction of Home Information Packs (HIPs) looks set to change the process slightly. From 1 June 2007, vendors must have a HIP, containing preliminary legal and other information, before putting a property on the market (see Home Information Packs: a Guide).

On average, a purchase takes around 10 weeks, from making an offer to completion. Much hinges on such variables as whether you are dependent on a mortgage, the performance of your solicitor and the vendor’s, the speed (or otherwise) of the local authority and Land Registry in responding to searches, and the length of any chain.

To ensure your purchase progresses as quickly and smoothly as possible, make sure you have dedicated contacts at your mortgage lender’s and solicitor’s offices. Be polite but persistent. Don’t let things drift.

Your step by step process

• You put in an offer, through the estate agent if one is instructed, or direct to the vendor if the property is being sold privately. Make your offer ‘subject to contract’; you can then withdraw at any stage before contracts are exchanged. Bear in mind that the vendor can do so too

• The vendor accepts your offer – or you negotiate

• Having agreed a price, both sides instruct solicitors

• You receive a formal mortgage offer

• You and/or your lender arrange a survey (see A Guide to Surveys)

• Your solicitor requests a draft contract from the vendor’s solicitor and sends searches and other enquiries to the Land Registry and local authority. These will reveal, among other things, whether the vendor genuinely owns the property and is entitled to sell it, whether there are any restrictive covenants on the property, and whether any new developments are planned nearby

• Your solicitor receives the draft contract from the vendor’s solicitor. This contains details of the purchase price, items included in the sale, whether the property is freehold or leasehold, and so on

• Your solicitor sends enquiries about the details of the contract to the vendor’s solicitor. When he receives replies, he will send you a list of the items to be included in the contract, for your approval.

• The surveyor inspects the property

• The search enquiries are answered satisfactorily

• The two parties’ solicitors agree the terms of the contract

• The surveyor makes his report. If it exposes significant shortcomings, you can ask the vendor to reduce the purchase price to reflect them, but he is not obliged to do so

• Your lender confirms the mortgage

• You sign the contract and write a cheque for the deposit (typically 10 per cent of the purchase price)

• Your solicitor receives instructions from your lender, drafts the conveyance, and sends it to you

• Your solicitor tells your lender the date by which the agreed funds are needed

• The two parties’ solicitors exchange contracts, and the deposit is paid. After this, neither side can withdraw without paying compensation to the other. You should insure the property from now on, as the vendor is not obliged to do so

• Your solicitor calculates the stamp duty, fees and other disbursements payable by you, and informs you of the sum required to complete the sale

• You sign the conveyance and mortgage agreement

• You and/or your lender transfer the completion monies to your solicitor

• Your solicitor receives the search certificate

• Your solicitor pays the final balance to the vendor’s solicitor (by banker’s draft or electronic transfer), stamps the conveyance and mortgage, and sends the deeds to your lender. If no mortgage is involved, ask your solicitor to retain the deeds for safekeeping


Congratulations: you’ve made it! Collect the keys – and start celebrating.