Jacksons - Magazine - Page 33
Buyer’s solicitor’s steps
• Obtain the Information Pack, including a copy of
the EPC (if applicable) from the sellers’ solicitor and
raise any additional queries
• Initiate any specialist searches (for example: a coal
search). Submit local, environmental and water
searches and a chancel check. This takes about 10
working days in total, and enquiries are then usually
raised from the results
• Approve the contract when all enquiries are
satisfactory and complete. (At this stage, a mortgage
transfer deed will need to be signed and witnessed)
• Receive a mortgage offer and instructions from
the lender and deal with any conditions set out
by them. Make sure that life cover and buildings
insurance is being arranged
• Request the deposit, report back to the buyer, and
arrange for the contract to be signed. Place buildings
insurance and life cover in force
• All parties agree completion dates and the contracts
are exchanged
Between exchange and completion
• Raise ‘requisitions on title’ and prepare the draft
transfer deed
• Report on title to mortgage lender and obtain
funds for completion, including Stamp Duty (if
appropriate)
• Prepare accounts, obtain signature to mortgage
deed and undertake 昀椀nal Land Registry and Land
Charges searches
Completion date
This is the date the ownership of the property
passes from the seller to the buyer, and it follows
the successful transfer of funds. It’s the date that the
whole process works towards.
Upon completion
• Forward to the seller’s solicitors the balance of
funds − it is only then that they can authorise
the release of the keys. Receive from the seller’s
solicitors, the transfer document deeds
• Stamp the Transfer Deed, register the buyer’s
ownership with the Land Registry and forward the
deeds to the lender or client (where appropriate)
Contract - The agreement that sets out the main terms
that have been agreed − for example: price, address, names,
etc. Two copies are drawn up, and each party signs one in
readiness for the exchange of contracts.
Deposit - The part of the purchase price (usually 10%) which
the buyer pays on exchange of contracts.
Exchange of contracts - The swapping of signed contracts
by the solicitors (together with the buyer’s deposit). After
this, the contract is binding.
Energy Performance Certi昀椀cate - This contains information
on energy use, energy performance, carbon dioxide
emissions, and fuel bills.
Land Registry - The Government department that records
who owns what land, and under what conditions.
Local Authority Search - A list of questions that are speci昀椀c
to the property and intended, for example, to discover if
there have been any planning applications on the property,
if the road to the house is maintained by the council, etc.
Mortgage Redemption Figure - The amount required to
repay the outstanding capital/ interest of a mortgage.
Property information form/昀椀xtures, 昀椀ttings and contents
form - Standard forms about the property that the seller
answers for their solicitor (for example: what will be left
behind, details of guarantees, etc.)
Title Deeds - Legal documents that prove ownership of
land/buildings, and the terms on which they are owned.
Transfer of Title - The document that passes the ownership
from the seller to the buyer.
Stamp Duty for buy to let investors and second home
owners - An additional tax, paid by the buyer purchasing
an additional property that is not their main residence. It
includes buy to let landlords and those buying second homes
and holiday homes. The higher rates will be 3 percentage
points above the current rates of duty shown below.
Requisition on title - An enquiry relating to the completion
arrangements.
Seller’s Pack - This comprises a Property Information Form,
a Fixtures, Fittings and Contents Form, a copy of the title
deeds and the draft contract.
Stamp Duty – Currently, the Stamp Duty threshold for
residential properties is £250,000. For 昀椀rst-time buyers
you can claim a discount and won’t pay Stamp Duty up to
£425,000 on the purchase price and after that you will pay
only 5% between £425,001 to £625,000.
However, how much you pay is also dependent on whether
you already own another property or if you’re a
non-UK resident.
