Guide to buying - Kath Wells

Step 1: Finance

One of the very first steps is to establish the amount of money you will need to save and what you can comfortably afford to borrow. Arranging an appointment with a mortgage advisor is the most practical way to do this. Your mortgage advisor will propose which mortgage will best suit your needs and situation. He or she will discuss your current and future requirements and supply you with information about the mortgage recommended, the monthly repayments and costs and any other associated charges. We recommend FC Mortgage & Protection who have a range of expertise which enables them to provide advice to you at all stages of your life. Whether you want to purchase your first home, you are approaching retirement or you are a property developer with a large portfolio of properties, you need to talk to us. Please visit our mortgage page for more information.

Step 2: Deposit

Saving a reasonable deposit can be a difficult task. The size of deposit may influence the interest rate you pay for some mortgage packages. Generally, the more you put down as a deposit, the lower the rate of interest you will have to pay. A typical deposit would be 10 – 25 per cent of the price of the property. Please visit our mortgage page for more information.

Step 3: The house hunt

Now you know how much you can spend on your new home it’s time to start looking for the ideal property. Kath Wells Estate Agents advertise online so you can do your preliminary searches from the comfort of your own home. Once you have decided upon which properties you would like to view its best to make notes and take photos on your visits to compare and contrast the properties you have seen in your own time. Don’t be afraid to see a property more than once. When you have your heart set on a property the next step is to make an offer.

Step 4: Appoint a solicitor

Buying a property can be a complicated procedure and there are various legal formalities that need to be completed. You should appoint a solicitor or licensed conveyancer to act as your legal representative. Kath Wells Estate Agents have teamed up with a number of local firms of solicitors who offer discounted fees for our customers; we will be pleased to obtain quotations from them for you which I’m sure you will find very competitive. Once appointed the solicitor will make any pre-sale enquires between you and the vendor and take you through the exchange and completion of the sale. They may also carry out ‘local searches’ on your behalf.

Step 5: Arrange a mortgage

Now you’ve found your ideal home it’s now time to make another appointment with your mortgage advisor to get your loan application underway. At the end of the meeting, the mortgage adviser will be able to confirm if your mortgage has been agreed ‘in principle’, the mortgage lender will then complete further checks on your income and credit status before a formal approval can be given. Before the lender will agree your mortgage, they will acquire a property valuation which will help to make a decision how much to lend on the property. You will be given a copy of the valuer’s report.

Step 6: The mortgage offer

When the lender has concluded all of their checks and everything is adequate, they will send you a ‘mortgage offer’ which is a formal document confirming that your mortgage loan has been agreed. The mortgage offer includes a full illustration of mortgage costs and terms. A copy will be sent directly to your legal representative who will then be able to tie up the purchase on your behalf.

Step 7: Exchange contracts

When your legal representative has finished various enquires about the property, such as checking the seller’s title and examining the contract, and is content with the mortgage offer, you will be ready to ‘exchange contracts’. Your legal adviser will ask you to sign the contract and pay the deposit. The deposit required is usually 10% of the purchase price, but if you are borrowing more than 90% of the purchase price, a smaller deposit is often acceptable. Your signed contract will then be sent to the seller’s solicitor, who in exchange will send back an identical contract signed by the seller – this is the ‘exchange of contracts’ that legally binds you to purchase the property. If you pull out at this stage you would lose your deposit. Once the exchange of contracts is complete a date for completion can be arranged.

Step 8: Insurance

You will be vital to have buildings insurance for the property, the insurance policy will need to be in place from exchange of contracts. FC Mortgage and Protection will be able to provide you with competitive rates for buildings and other insurances; please visit our Mortgage Section for more information.

Step 9: Preparing to move

With the completion date agreed and approaching it’s now time to start thinking about arranging removal companies. Kath Wells Estate Agents can help you select a local reputable firm. You will also need to agree with the seller to inform the energy and water providers of the change of ownership.

Step 10: Completion

You’re almost there! Once all the above processes have been completed you can collect the keys and move into your new home. At the point of completion, your name will be registered with the land registry and you will have to pay stamp duty land tax. The solicitor will arrange this for you. At this stage, you will also pay any transfer fees for transferring money from one account to another.

Stamp Duty: Residential properties

You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price above £125,000 when you buy residential property, for example, a house or flat.

There are different rules if you’re buying your first home and the purchase price is £500,000 or less.

Use the SDLT calculator to work out how much tax you’ll pay.

You must still send an SDLT return for transactions under £125,000 unless they’re exempt.

Rates if you’re buying your first home

You can claim a discount (relief) so you don’t pay any tax up to £300,000 and pay 5% on the portion from £300,001 to £500,000.

You’re eligible if:

you, and anyone else you’re buying with, are first-time buyers
you complete your purchase on or after 22 November 2017

If the price is over £500,000, you follow the rules for people who’ve bought a home before.

Rates if you’ve bought a home before

Freehold sales and transfers

You can also use this table to work out the SDLT for the purchase price of a lease (the “lease premium”).

Property or lease premium or transfer value	SDLT rate
Up to £125,000	Zero
The next £125,000 (the portion from £125,001 to £250,000)	2%
The next £675,000 (the portion from £250,001 to £925,000)	5%

Example

If you buy a property for £275,000, the SDLT you owe is calculated as follows:

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £25,000 = £1,250

Total SDLT = £3,750

*Source: www.gov.uk/stamp-duty-land-tax-rates

Conveyancing

When you sell or buy a property with us we will ask for your property conveyancer/solicitor details. We can recommend good local solicitor firms with competitive fees

We are members of The Property Ombudsman scheme meaning we follow a their strict Code of Practice for Residential Estate Agents and are up to date with changes in legislation.

Interested in buying a property in Leeds or Bradford?

When you buy a property with us we will ask for your property conveyancer/solicitor details. We can recommend good local solicitor firms with competitive fees.

Contact us

Buying a property with Kath Wells

Everything you need to take the next step