The Buying Process

1. Free Property Consultation

We facilitate free property consultations with investors either via the telephone or with Zoom at times to sort you wherever you are in the world. The purpose of the consultation is to give us the opportunity to fully understand your current situation i.e. financial obligations, disposable income and existing investments, as well as your property investment goals.

2. Tailored Property Investment Plan

Based on the information obtained from the consultation, we will create a tailor made short, medium or long term investment plan that best enables you to reach your investment goals. We will provide you with secure options to choose from that meet your requirements and take into consideration the amount of monthly cash flow and capital appreciation you will need them to achieve. All of the proposed options will take into consideration local market trends, projected forecasts and future proofing the investment. We will give you time to review the information and typically arrange a follow up call to go through the information together and answer any questions you may have.

3. Speak to an Independent Mortgage Advisor

For those looking to purchase a property with a mortgage, we always encourage investors to talk to an FCA approved Independent Mortgage Advisor. We can provide you with the details of the one we use or you are free to contact another one if you prefer. Independent mortgage advice is essential to know you have your finances in order for the completion date. The Mortgage Advisor should explain the steps to maintain and improve your finances prior to an official application being submitted. There are hundreds of mortgage products available and offered by over a hundred different lenders, some of which are not available to the general public. Finding a good Mortgage Advisor will save you a lot of time and in some cases a substantial amount of money. If you are buying with cash then you may find it useful talking to a Mortgage Advisor to see how much further your money can get you with the power of leveraging.

4. Secure the Property

When you feel happy and comfortable with your choice of investment then it is time to move forward to securing it and having the property removed from the market. We will submit, on your behalf, the offer you have agreed on to the seller’s agent. In some cases when the offer is accepted, the seller may request you to pay a holding fee; typically between £500 to £1,000 to show your intent to follow through with the purchase. This amount will be deducted from the purchase price.

For those investing in new build/conversion developments, you can reserve the property by completing the reservation form and paying the reservation fee (typically £5,000) via bank transfer. The reservation fee will be deducted from the deposit amount.

5. Appoint a Conveyancing Solicitor

The Conveyancing Solicitor will take care of all the legal process to make the property officially yours. Some developers have their own recommendations, you can use one recommended by us otherwise there are many out there. Unless you are trained in this area you will need them to ensure everything is legally as it should be.

Conveyancing Solicitors usually advise you of their fees upfront and might ask for you to pay a deposit which is normally within the region of £500 to £1,500 plus VAT. Local searches will be submitted to the local authorities by the Conveyancing Solicitor to avail of information related to planning permissions and local issues that could impact the property e.g. related to drainage or environmental. These usually cost between £250 to £300.

6. Secure your mortgage

A good mortgage broker will run you through the process so you know exactly what is required from you in order to meet the lenders requirements. This stage can take anything from six weeks to four months depending on on your circumstances and the type of property you are buying. There is usually an arrangement fee of up to £2,000 for setting up the mortgage which can be added to the mortgage though you should consider that you will be charged interest on it. Once a formal mortgage offer is received you’ll normally have at least seven days to think if it is right for you or if you want to compare it with others.

7. Pay the deposit

The deposit must be at least 5-10% of the asking price, though this does depend on the mortgage product available to you. In general, the higher the deposit paid the better the mortgage offer you will likely receive. You will be expected to pay the deposit to your Conveyancing Solicitor, who will transfer the funds to the Buyer’s/Developer’s Solicitor on your behalf.

For New Build properties the reservation fee is deduction from the deposit which is typically 20-30% of the asking price though can vary depending on the specific development. If your developer is registered with a warranty provider such as NHBC Buildmark or Premier Guarantee then your deposit will be protected up to 10% of the purchase price. This gives you some security should the builder become bankrupt and allows you to claim a full refund (without penalties) should there be unreasonable delays during the construction.

8. Exchange contracts

Assuming there are no problems or delays then you should receive the contract to sign and complete the sale. It is important that prior to signing the contract that you read everything thoroughly and seek advice from your Conveyancing Solicitor if you need any clarification. Make sure that whatever has been previously agreed with the seller is detailed in the contract. Once signed, you and the seller are committed to the sale. For pre-existing building sales, you will need buildings insurance to cover the structure of the property. For new build properties this is not the case as there should be a warranty in place, typically ten years.

9. Make a snagging list

Typically when the property is handed over to you you will walk around and take note of the finishing look. For those that have had agreements with sellers of existing properties it is important to check the points that you have agreed with them e.g. any refurbishment works and upgrades such as a replacement boiler. It is advisable to test that everything is working as it should and, for new build properties, that it is as per the plans e.g. the correct fixtures/fittings and decor. You should create a snagging list for any defects that need to be addressed. It is recommended to do this prior to Completion to allow the tradespeople time to rectify anything you feel is not satisfaction. Many overseas investors do not visit their properties but instead the handover can be done by the appointed property management company, though this service comes at an additional cost. Again, recommendations can be provided that specialise on your type of property investment.

10. Completion

This is the final stage of the process which usually takes place about four weeks after exchange and there are multiple steps that need to occur before you officially become the property owner. Firstly, the mortgage lender will release the money they have agreed to lend to your Conveyancing Solicitor and there will be a telegraphic transfer fee for this transaction, typically between £25-50. It is at this point where the property title deeds are handed over to your Conveyancing Solicitor from the Seller’s/Developer’s Solicitor. Any monies owing on the property will need to be paid; this is the difference between both the mortgage value and what you have already paid vs the purchase price, e.g. you might have paid 20% deposit on a new build flat but your mortgage is 75% Loan to Value (LTV); the additional 5% of funds will need to be paid to your Conveyancing Solicitor. Your Conveyancing Solicitor will transfer all the money you have paid to the Seller’s Solicitor. The date for the property to be vacated by the previous owner (if applicable) and the keys to be released to the Conveyancing Solicitor will be set.

There might be a mortgage setup fee to be paid depending on the lender and the specific mortgage product. This is an administrative fee to cover the cost of setting up, managing and closing the mortgage account which is around £100 to £300. Some people choose to add this to their mortgage amount though note that you will be paying interest on this amount of the length of the mortgage. We advise, if you can pay for it now then do so though we appreciate that this may not be possible for all.

We have spoken a lot about your Conveyancing Solicitor; they do a lot of essential work for you so it is only right that we pay them for their time and efforts. Often you would have paid a deposit at the beginning when instructing your Conveyancing Solicitor along with fees for local searches and these amounts will be deducted from the Conveyancing Solicitors fee which can range from £500-£1,500 plus VAT.

The Conveyancing Solicitor will need to register the property and the authority to do that with and the associated price will depend on the nation of the UK where the property is situated. In England and Wales it is the Land Registry, the Registers of Scotland in Scotland and the Land and Property Services in Northern Ireland.

It is at this point that we, should you decide to work with us, or the appointed agent will also request to be paid. The fees should be clear from the beginning; for our Deal Packaging and Property Marketing Services we typically charge 1% of the agreed purchase price or £1,000 whichever is greater. Some high street estate agents have much higher overheads which is then reflected in their fees; sometimes as much as £4,000 to £5,000 plus VAT. We do not charge those that have chosen to invest in new build properties as we receive a commission from the developer.

In England and Northern Ireland, first time buyers of residential homes over £125,000 have 14 days from the completion date to pay Stamp Duty and Land Tax. This will usually be handled by your Conveyancing Solicitor. In Wales, Land Transaction Tax is paid on properties over £180,000 and in Scotland the Land and Buildings Transactions Tax is payable on properties over £145,000. Important to know, if you are purchasing a second home or a buy-to-let property then you will pay an additional 3% on top of the Stamp Duty/Land Transaction Tax band.

11. Get the Title Deeds

The new title deeds will be obtained from the Land Registry by your Conveyancing Solicitor who will send them to your mortgage lender or to you (if you paid in cash). These are important documents as it declares that you are the legal owner of the property. You have the right to request them otherwise they usually keep them on file.

12. Congratulations!

The property is finally yours to enjoy whether it is going to be your new home or as in income stream from renting it out.