Buying your First Home

Buying your first home is exciting but can feel a little overwhelming, especially when legal terms like ‘conveyancing’ pop up.
But don’t worry – we’re here to explain what you need to know as first-time buyers.

What is conveyancing?

Conveyancing is the term used for the legal transfer of property ownership from the seller to the buyer. It ensures that you legally own the home and that there are no hidden surprises, like restrictions or unpaid taxes. Your conveyancing team will look through everything so that this kind of ‘surprise’ doesn’t come up.

Getting started

Before jumping into house-hunting, it is a good idea to get a mortgage agreement in principle. This shows sellers you’re serious and that a lender is likely to give you the funds to buy the property. Once you find a property you love and your offer is accepted, the real work begins, and the conveyancing process starts.

How to choose a Solicitor or Licenced Conveyancer (Conveyancing Team)

At this point, you will need a conveyancing team to handle the legal aspects of your purchase including, reviewing the title deeds, running necessary searches, communicating with the seller’s conveyancing team and preparing contracts. The reason you need a conveyancing team is because a house sale requires a legal process, undertaken by a qualified legal professional.

Choosing a reliable and professional firm with experience in handling property transactions is vital, especially if you’re new to the process. 
You might have been recommended a solicitor by someone else who had a good experience, but still check them out yourselves – their website, and third-party reviews such as Google can be useful too. Ask for their fees, find out how they work, do they offer what you need and are there any hidden costs? Can you speak to the person who will be dealing with your conveyancing?  You make this choice, you do not have to use any firm in particular – and if you are told this is the case, then pleased remember that it’s not true. In fact, be wary if you are told this – it is not true!

What property searches are done when buying a new property?

Your conveyancing team will conduct various searches on your behalf, to uncover anything you need to know about the property. These usually include:

• Local Authority Searches: Checking for planning issues, road schemes, or local developments as well as any Financial Orders, as they run with the property.
• Environmental Searches: Identifying risks such as flooding, subsidence and contamination.
• Water and Drainage Searches: Confirmation that the property is connected to water and drainage services and checks on whether there are sewers within the property boundaries.

These searches help ensure there are no hidden problems that could affect your decision to buy.

What happens when you receive your mortgage offer?

If you’re using a mortgage to finance your purchase, your lender will carry out a valuation to ensure the property is worth the amount you’re borrowing and that you can afford it. Once your lender is happy, you will receive a formal mortgage offer. Your conveyancing team will need a copy to finalise the next steps.

Reviewing and signing contracts

The seller’s conveyancing team will draft a contract of sale, which your conveyancing team will carefully review. They will raise any queries and negotiate any necessary changes. They will also verify the property’s title to confirm the seller’s ownership and check for any ‘restrictions’ or rights affecting the property. When both sides are satisfied, you will sign the contract, ready for the ‘exchange’.

What is ‘exchange of contracts’?

Once all searches are complete, contract documents are agreed, you have reviewed your Report on Title and you have your mortgage offer, you’ll be ready to exchange contracts. This is a big moment, as once exchanged, the agreement becomes legally binding. You’ll usually pay a deposit, typically 10% of the purchase price, which becomes non-refundable after exchange.  From this point on, neither side can pull out without serious financial penalties.
You should insure the property you are buying from the day of exchange, as this is when the risk passes to you. If you are using a Lifetime ISA (Individual savings account), your account will need to be closed. Your conveyancing team will let you know when and how to do this.

What happens on completion day?

On completion day, the remaining purchase money is transferred from your conveyancing team to the seller’s conveyancing team. Once the payment is confirmed you will be able to collect the keys to your first home and the property officially becomes yours. Congratulations – you’re officially a homeowner!

What happens after completion?

After completion, your conveyancing team will handle the post-completion formalities, including paying any stamp duty, registering your ownership with the Land Registry, and ensure all documents are in order. Please note however, that your name will not appear on the title of the property until the Land Registry has finished registering you as the owner.

Conclusion

Buying your first home can be complicated, but with a skilled conveyancing team by your side, who is available to answer your questions (no matter how big or small they are) and respond to your emails, it becomes much more manageable.

Visit our Residential Property Page for more information and Frequently asked Questions, including buying at auction.

If you’re buying, selling or leasing a commercial property, you’ll find more information here.

Get in touch to speak with us about conveyancing, or to ask a question about us, our fees or how we work.