Where are the first time buyers ?

Yesterday I promised to post information and advice for the first time buyer in the UK Property Market

Well today has almost finished and here I am writing when everyone else is thinking of going home

It appears to me that generally the first time buyer is the most uninformed of all people involved in the property market and therefore the most likely to be open to all kinds of pressures from so called property experts who have little or no experience in the marketplace . The result of this is that they are prone to all the stress that this type of transaction can bring.

Typically the first time buyer is purchasing leasehold property that is full of pitfalls for the unwary . It is also one of the most complicated forms of property purchase because invariably not all of the documentation is in one place and rarely will it be contained in the HIP (Home Information Pack) that is provided by the seller of the property. It is my experience that a higher than average proportion of these type of transactions fall through either because of lack of information or defective leases.

So having said all this what is the best time for the buyer to instruct a property lawyer?
It is usually best to discuss the proposed transaction with a lawyer before becoming involved in any negotiations for the purchase as advice can then be given as to cost ,projected timescales and most importantly of all assistance with the negotiations. The earlier you instruct the easier you will find the process as only your lawyer has your best interests at heart.

In the present property market there is a degree of uncertainty both as regards whether the property values will continue to fall and also whether the first time buyer can borrow sufficient to proceed with the purchase. It is my belief that now is a good time to buy as what you pay in rent can be used instead on a mortgage however because property values can fall as well as increase the purchase has to be viewed long term and on the basis that it is a home for you to live in . Lenders have varying criteria but certainly at the moment first time buyers must have a minimum of a 10% deposit in order to be able to proceed.

Tomorrow I will answer a few questions as to how long will it take and what happens if you do not complete on the purchase

Reg

Frequently Asked Questions

Well good afternoon everyone. The time has come for me to start answering some of the questions I am getting asked by clients and others relating to the process of buying and selling in the UK Property Market.

Q What is a HIP?
This is a document required before you can sell a property. It has been imposed on sellers by the Government . The document is now required on all properties that are being sold and contains information that a buyer needs to proceed to purchase the property.
Q Who has to provide a Hip?
The seller of a property is ultimately responsible to purchase the HIP usually through their Lawyer who is best placed to ensure the correct documents are contained in it and that it complies with the relevant legislation. In some cases it is obtained through the selling agent but in my experience this usually delays the selling process as they are unable to provide a compliant HIP to the sellers and Buyers Lawyers. The seller is also responsible to pay for the HIP .
Q What is included in a HIP?
The following documents are usually included
Local Search-Drainage and Water Search-Office Copies of the Sellers Title-Index-Brief details of the property including the sellers name-Energy Performance report. Other documents that can be included but rarely are :- replies to enquiries/property information form-fixtures list and other usual searches
QWhy do I need a HIP and How much does it cost?
In real terms the only reason why a Hip is required is because the Law says so although the only piece of information that is not usually obtained by a Lawyer is the Energy Performance certificate. You must expect to pay upwards of £300.00 for the HIP.
Q If I am provided with a HIP do I need further information?
Whether you are a seller or a buyer the information contained in the HIP is only very basic usually including a personal search which is rarelly acceptable to the buyers Lawyers. You will still need answers to preliminary questions and written details of what is included in the price for the property.

You can see from the above that it is therefore very important that a Specialist Property Lawyer is appointed either before you market your propertyor if you are a Buyer before you finalise your offer to the seller in order that any problems are resolved at the earliest opportunity.

I hope you have found the above informative and I will answer another question tomorrow on Buying to Let