Where Are The First Time Buyers? Part 2

Well over the weekend yet more negative news from the media regarding the UK Property Market and in particular the London Property Market where it is stated as factual that prices are still dropping. While it may be true overall it is not true when looking in some areas of London where prices are stable.

So how does this affect the First Time Buyer?
You will have read from my earlier blogs that I do not believe that buyers when looking to purchase a property must first of all be concerned as to price. In my view the property is first and foremost somewhere to live and only secondly as part of a long term strategy an investment since everybody knows that property values go down as well as up.

On this basis it is still wise to purchase a property since mortgage payments at the present time are still lower than most people will pay in rent.

So on the assumption that you are proposing to buy a property it is important that you also understand that the process can take on average eight to twelve weeks to be finalised and in the case of leasehold property even longer.

After you have negotiated the purchase price your lawyers start working on raising questions about the property from your sellers through their lawyers and other agencies including the local authority. In addition they will deal with the contract checking progress on your mortgage and preparing the purchase documents including a transfer. It is only when all the information has been obtained that matters can progress to exchange of contracts.

On exchange the completion date is agreed which is usually ten working days from exchange to allow sufficient time to deal with last minute searches and questions which may arise on the mortgage.

On the completion day access is usually available from midday and in the event that either you or your seller fails to complete for whatever reason compensation will be payable by the defaulting party.

In my next blog I will attempt to give a brief overview of why Identification and proof of address is now needed on all property transactions in the UK

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