Buying a home is a complex process and there are many financial issues that you will need to think of, which we outline below. Elliot Mather LLP is not able to provide financial advice and you should contact an Independent Financial Advisor who will provide detailed advice and search the market for the best products that meet your needs. Independent Financial Advisors are not tied to any particular company and can offer advice on most products on the market. Negotiating your Sale and Purchase Let us assume that you have found the house you wish to buy. You will now be negotiating terms for the purchase and unless you are a first time buyer, you will also be negotiating terms for the sale of your present home. It is important to remember that when putting anything in writing it includes the expression “Subject to Contract”. Also, you must make it clear to the seller that the offer is “Subject to a satisfactory survey”. If the survey is not satisfactory, we are often able to renegotiate the purchase price on your behalf. Mortgage costs There are a large number of different mortgages on the market at any one time. In order to find the one that is right for you it is important that you have the advice of a good Independent Financial Adviser. You will be committing yourself to probably the largest debt that you will ever incur in your lifetime so you should not always accept the first offer that is made to you. When you are applying for a mortgage or take out a mortgage you naturally focus on the monthly payments. However, there are a wide variety of other costs to consider as well. Some are obvious and some may be hidden. See our separate sheet on BUYING A HOME – Getting the best mortgage deal Fixtures and Fittings Anything that is fixed permanently to the house or land such as baths and a built in kitchen is normally sold as part of the property. However, the Seller may wish to remove certain fixtures and fittings. Both parties should know exactly what items are being included within the property before contracts are exchanged. Also, if a separate price can be fixed for the carpets and fittings etc., it may be possible for us to reduce slightly the amount of Stamp Duty that you will have to pay. Surveys A building society will only survey the property to see if the purchase price is justified before the mortgage is granted. They do not normall carry out a full structural survey. Legally the Seller is not bound to give any guarantees as to the condition of the property, and the Buyer purchases the property as it is seen. We may recommend that a structural Survey or a “Home Buyer’s Report” by a qualified surveyor is obtained. You can sometimes arrange for the Mortgage Lender to do so on your behalf. If the surveyor finds work which needs doing, it may be possible to negotiate a lower price with the Seller, if this is the case, please let us know. In older properties a specific survey is sometimes advisable, especially where there is a suspicion that the property may suffer from woodworm, rot or damp. Normally, the Estate Agents can recommend you to a local firm that specialises in these problems who will normally conduct a free survey. Payment of a Preliminary Deposit The Sellers agents will sometimes ask you to pay a preliminary deposit. It is not intended to be the full deposit that is paid on exchange of Contracts. If one is paid we recommend: That it does not exceed £250 That you obtain a receipt That the receipt states that the deposit is paid “Subject to Contract” That the deposit is refundable Second Mortgages/Loans Sometimes, you may have two charges or a secured loan over the property. Details of these must be given as soon as possible and these will then be paid by us on completion out of the proceeds of sale. If you have a loan, make sure that it is not secured on the property. If it is, this will need to be redeemed on completion. If the loan is secured and there are insufficient funds to repay the same from the proceeds from the sale of your property it may delay completion if this is discovered at the last minute. Then arrangements will have to be made to convert this on to a unsecured basis, additional funds required to discharge the same or application made to transfer it to another property (all of which are of course at the discretion and subject to that company’s criteria at that time). If this is not agreed and funds cannot be raised the sale may not be able to go ahead. Insurance Insurance of the property becomes the buyer’s responsibility normally once contracts are exchanged. However, sometimes on brand new properties the builder will insure the property until completion. If you are buying a leasehold property, it is likely that the landlord will insure. If you are purchasing a property free of a mortgage, or if you have agreed with your lender that you will arrange insurance of the property this must be in place prior to exchange of contracts. If in doubt you should contact your lender or financial adviser.

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