Find a Solicitor to Purchase a Property

Buying a home is likely the largest purchase you will ever make. Having the right information at the right time is crucial to making informed decisions. Understanding the property purchase process can help you avoid unnecessary stress and speed up the process of buying a property. 

Some of the key steps involved include obtaining a mortgage, conducting searches, and completing the purchase. In this comprehensive guide for individuals and families looking to purchase a property, we’ll simplify the process and set it out step by step. The content will cover the key milestones in the property purchase process, set out the important legal steps to buy a property, and the role of a solicitor in ensuring a smooth transaction. 

We’ve written this for:

• First-time buyers purchasing a home
• Investors looking to buy residential or commercial property
• Families upgrading to a new home
• Legal professionals advising clients on property purchases

The goal is to inform prospective buyers about the complexities of purchasing a property and the value of seeking legal assistance to navigate the process effectively.

Key stages in the property purchase process

If you’re looking to get on the housing ladder, consider this your ultimate first-time homebuyer guide. There is a three-stage process to preparing to buy a property. 

Finding a property

There’s no point looking at properties you can’t afford. So, you will need to find out how much you can borrow. Mortgage lenders consider your salary, the size of your deposit and your creditworthiness. 

You can usually borrow up to four and a half times your annual income. You’ll need to budget for other costs too including:

• Conveyancing fees
• Surveys
• Solicitor fees
• Stamp duty
• VAT
• Removal fees
• Estate agent fees
• Local authority searches
• Gas and electricity fees for your current home before you leave

Assessing the property market is an important consideration when property hunting. At this point, you will browse property portals, gaze through the windows of estate agents in your neighbourhood and view properties online. 

You can also research how property prices are faring in the area, ask friends and family about market fluctuations and read market assessments online. How much have house prices fluctuated in your area of interest for example and what is the average house price?

Choosing the locations you can see yourself living in is important. Assess areas for their amenities such as shops and schools and the quality of their transport links. 

As well as looking at property portfolios on your phone or laptop, you should consider registering with an estate agent once you have identified the areas you are interested in and know the type of property you’re looking for (terraced, semi-detached, detached, flat, bungalow etc.).

Making an offer

The next stage of purchasing a home is making an offer. When making an offer it is important not to spend more than you can afford and remember to budget for all the additional fees you will have to pay. 

You may offer below the asking price. The right strategy depends on the property and how competitive the market is. If there are many buyers interested, you may have to offer above the asking price. 

Looking at how much similar properties in the area have sold for is a good way to determine an appropriate amount to offer. Find this information on websites like the Land Registry. 

When you have decided what to offer, if you are working with an estate agent, it is usually a good idea to give them a call to let them know the amount. You can also put it in writing to avoid any misunderstandings. 

Strategically, it is worth mentioning any advantages you have that will put you at the top of a seller’s list of serious offers, these include:

• Being a first-time buyer without a chain
• If you are a cash buyer, emphasising this

Making an offer subject to a survey and the property being taken off the market is a practical move to ensure you’re not gazumped. Before you make an offer, it is worth considering the items on this checklist:

• What’s included? – which fixtures and fittings will be included in the sale? Get this in writing to avoid moving into a completely unfurnished home
• What’s it worth? – research how much similar properties in the area have gone for recently
• Leasehold properties – how much is the service charge and ground rent?
• What can you afford? – have an upper limit in mind, anything above you’ll walk
• Seller’s circumstances – is the seller part of a chain, do they have accommodation arranged?
• Your profile – market yourself effectively. Let the buyer know you have an agreement in principle, or that you’re a cash buyer, if you’re a first-time buyer, or you’ve already sold your home
• Interest – is anyone else interested in the property, have they made an offer?

If your offer is accepted, ask the estate agent to stop marketing the property and remove it from any online portals. However, it is up to the seller whether they take the property off the market.

If your offer is rejected you have a few options:

1. Make a higher offer
2. Move on 

Remember, that if you offer below the asking price, it is likely that your offer will be rejected. You should have some flexibility in your budget to make a higher offer.  You should only make a higher offer when:

• There is a lot of other interest
• It’s your dream home
• You have a flexible budget

Obtaining a mortgage

Applying for and securing a mortgage is a multi-step process in itself. A mortgage is the money you borrow to buy a home. These loans are usually for a fixed period, known as a term, and you will have to pay interest on the loan. You need to keep up repayments, or a lender can repossess your home. 

There are two main types of mortgages to consider:

• Repayment mortgage – in this type of mortgage the capital (money) borrowed is repaid over the term of the loan. This is paid in monthly instalments with interest on top. The capital repayments increase over time as the interest rate declines
• Interest-only mortgage – borrowers pay interest on the loan in monthly instalments to the lender. The capital itself isn’t repaid each month, instead, you will pay into a long-term investment or savings plan. The aim is for this fund to be enough to pay off the loan at the end of the term

When considering how much mortgage you can afford, there are various online mortgage calculators, such as this one from Citizens Advice. They allow you to roughly calculate your monthly repayment. The figures generated by mortgage calculators are only a rough guide of a mortgage’s costs, as they vary by type and provider.

You will need to consider the mortgage term. Traditionally, the majority of mortgage terms were 25 years. However, more recently terms of 30 or 40 years have become more common, especially with first-time buyers struggling to get a mortgage. 

To apply for a mortgage, you should research providers. You can apply for a mortgage from:

• Banks and building societies
• Building companies
• Mortgage lenders
• Finance houses
• Government schemes like Help to Buy

You may also choose to use a mortgage broker, rather than approaching lenders yourself. Brokers can be insurance brokers, estate agents or specialist mortgage brokers. They will introduce you to different mortgage loans to buy a home. The value of brokers is in saving time from shopping around looking for a mortgage deal yourself.

Some lenders offer certain deals only to consumers, so this is worth considering. To make a mortgage application, you’ll need to provide certain documents:

• Proof of ID
• Employment details
• Up to six months of bank statements

You’ll usually need to provide:

• Proof of identity 
• Proof of address
• Bank and credit statements
• Proof of employment

Legal process for purchasing a property

There is also the much-discussed legal process to follow when buying a property.

1. Instructing a solicitor

Property solicitors play an important role in the property purchase process, including conducting searches, reviewing contracts, and liaising with the seller’s solicitor.

2. Property searches

Solicitors carry out a range of different property searches during the purchase process:

• Local authority searches – to check if you need to be aware of building control issues, enforcement actions and any nearby road projects
• Environmental searches – check that land in the area is not contaminated
• Drainage and water searches – check that a property is connected to the drainage system

Searches are also known as enquires. We’ve written a comprehensive guide on property enquiries. 

3. Exchanging contracts

Exchanging contracts is the process of exchanging signed contracts between buyers and sellers. It signifies that there is now a legally binding contract between you. At this stage, both parties are committed to the sale and cannot pull out. Buyers forfeit their deposit if they pull out at this stage. 

4. Completion and transfer of ownership

Now we come to the final steps of the property purchase process. This includes signing a transfer deed prepared by your solicitor – this confirms you want to take on the ownership of a property. You must sign this document and have it witnessed to ensure it is legally binding. 

Next, your solicitor will request the funds from your mortgage lender in good time for it to clear. They will then send the full payment to the seller’s solicitor and receive the seller’s title deeds and proof the seller’s mortgage is cleared – to ensure their lender has no claim to the property. 

5. Risks and considerations

There are many strategic considerations to mull over when buying a house, sometimes it can seem as if you are playing a chess game against a grandmaster. So, it pays to be prepared.

Beware of gazumping and gazundering. Let’s define these mystifying terms:

• Gazumping - gazumping is when someone else makes a higher offer for a house than someone whose offer has already been accepted
• Gazundering - in gazundering, a buyer withdraws their current offer and makes a new offer for less

You can guard against risks. To prevent someone from gazumping you make your offer conditional on a seller taking the property off the market.

Gazundering is a risk for both buyers and sellers. It is worth considering for buyers but is fraught with danger as sellers may not accept a lower offer than your initial offer. For sellers, it can be beneficial if you want a quick sale, and don’t want to remarket your property. 

Sellers can minimise the risk of gazundering by:

• Accepting the offer of a chain-free buyer
• Setting a realistic property price
• Being transparent about property issues
• Moving through the selling process quickly

It is important to be aware of any legal issues with the property quickly. Your solicitor should carry out searches to identify any existing disputes over boundaries, easements, or restrictions on property use, and suggest strategies on how these can be addressed.

Costs and fees involved

There are several fees to be aware of when buying a house, aside from the deposit and mortgage.

• Stamp Duty Land Tax (SDLT) – you can check the rates and thresholds, and any available exemptions for first-time buyers on Gov.uk
• Legal fees - the legal costs involved in purchasing a property, include solicitor fees for conveyancing, conducting searches, and managing the transaction
• Additional Costs - additional costs include survey fees, mortgage arrangement fees, and insurance costs

Why choose Lawhive for property purchase legal advice?

Here are three reasons to choose us to handle your property purchase:

• Legal expertise - our property solicitors are experts in handling property transactions for clients, ensuring a smooth and legally compliant purchase process
• Combination of technology and legal expertise - we utilise technology to streamline the conveyancing process, providing clients with efficient and cost-effective property purchase solutions
• Client-centric approach - Lawhive is committed to understanding client needs and providing tailored legal solutions to ensure a successful property purchase experience

Purchase a property legal advice

Now you know the key steps and legal considerations involved in purchasing a property and the importance of seeking professional legal advice to navigate this complex and time-consuming process smoothly.

Prospective buyers can seek expert legal assistance from Lawhive’s property purchase solicitors to ensure their property purchase is handled professionally and without complications.

Book your free case assessment today. 

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