Information For First Time And Other Buyers

Well as promised I am going to speak to the first time buyer today and attempt to answer what I am sure are the many questions they have before venturing into the scary world of the UK Property market.

Generally the first time buyer is unsure whether to find the property they wish to buy or to discuss their proposed purchase with a lawyer first.

I believe it's always worthwhile discussing with and instructing a Lawyer before you enter into the property market as they are able to advise on a number of issues including how to negotiate and obtain the best price in the current property market

One of the things which prevent this is the wrong assumption that instructing a Lawyer can be expensive. This is untrue since many Lawyers have schemes in place which can limit your exposure to such expense.

The other concern is how much can you borrow. This is a question properly addressed to a lender however we have a mortgage broker who can give advise on this if we were instructed. It has to be acknowledged that lenders have differrent criteria and lending multiples so it can only be carried out on a case by case basis.

In the current property market a buyer will need a minimum of ten percent deposit available for exchange of contracts which is usually six to eight weeks from offering on the property.

During the period from offer to exchange the lawyer will be raising questions and searches relevant to the property checking the contract together with the mortgage and in respect of the best law firms preparing the purchase documents for signature. Once all these matters have been finalised a written report is given and the buyer is invited to sign.

The transaction is then ready to exchange when a completion date is agreed usually ten working days from exchange as this is the minimum period to safely be sure that mortgage monies can be released and any further questions arising from post exchange searches can be answered.

It is normal on the day of completion to aim for entry into the property at midday and if the matter fails to complete then compensation is paid by the defaulting party.

I have previously said that now is a good time to be investing in property as it is generally cheaper paying a mortgage than rent and is a good long term investment.

If there are any questions please feel free to post here



Reg