6 Things You Need to Know When Buying Your Home - By: Tim Bishop

Buying a house can be a very complicated process, with a lot of things that you should think about. There are some important areas, however, where you should not be tempted to try and cut corner. If you are thinking of buying a home, you would be best to remember the six points listed below.

1. Making an offer on another property when I have not received an offer on mine.

There is no reason not to make an offer, although you will be viewed more seriously if you already have someone lined up to buy your property who is in a position to proceed with the purchase straight away.

2. Everything I see in the house will still be there when I move in.

When making an offer you should consider whether there are any fixtures and fittings that you would like to stay at the property. As part of the negotiation process you may wish to make an offer based on certain items (eg carpets and curtains) being included in the price.

3. I do not need a survey

The purchase of a property is probably the largest financial transaction of your life and it is important that proper professional advice is obtained from a surveyor regarding the condition of the property. Many people make two common errors when it comes to surveys. Firstly, if they do not need a mortgage they assume that a survey is not needed. Secondly, if a mortgage is needed they opt for the cheapest option, which is the basic valuation survey. The basic valuation survey is purely for the lender's needs and does not normally contain any details whatsoever about the condition of the property. Therefore, it is important that you at least have the Homebuyers Report. This is a survey commissioned directly by you with the surveyor which means there is a contractual relationship and the surveyor is under an obligation to provide advice regarding the condition of the property. The advice given is backed by professional indemnity insurance which means that you are covered in case any problems are overlooked. Your conveyancing solicitor will be able to recommend an experienced surveyor to carry out a survey.

4. I can reduce the Stamp Duty by splitting the purchase price between the house itself and fixtures and fittings  

It is common that the price you offer for a property reflects the value of the house plus any additional fixtures and fittings. You can agree a reasonable additional figure for fittings such as carpets and curtains which is not chargeable to Stamp Duty Land Tax. However, such a figure must reflect a reasonable valuation of these items otherwise the Inland Revenue will challenge the transaction. 

5. I do not need to pay a deposit on exchange

Normally, if you are selling one property and buying another the deposit which is received from your sale can be used as the deposit on your new property. This means that you should not have to pay any extra money when contracts are exchanged. Furthermore, while the contract may state that a 10% deposit needs to be paid it is not unusual for a lesser deposit to be accepted

6. Failing to notify the service providers e.g. gas, electricity etc

  Before moving into a property, it is important to find out who the service providers are. You should also ensure that all service meters are read on the date the seller moves out of the property. This will help to ensure that future bills are accurate and any disputes are avoided.   

Ensure you never rely on assumptions when buying your home - it is after all probably the most expensive transaction in your life. Appointing an experienced local residential conveyancing solicitor, listing to their advice and asking them questions, whenever you're not sure what's going on, is the first step to your simple and stress free house purchase.  

About the Author

Tim Bishop is senior partner at Bonallack & Bishop, a firm of Salisbury, Warminster and Andover Property Solicitors with an experienced residential property team. Tim is responsible for all major strategic decisions and has grown the firm by 1000% in the last 12 years. He sees himself as a businessman who owns a law firm.

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