Property sales

Property purchases

He or she will prepare a file and ask you to complete a Sellers Property Information Pack, and a questionnaire covering any fixtures and fittings that you intend to include in the sale. You should also keep a hard copy of this inventory at the property during the viewing process.
Once you have accepted an offer, these documents will be sent to the buyer’s lawyer, and will form the basis of the contract between you.

For your safety and convenience, all the details of the viewing should be confirmed over the telephone, including the name, address and telephone number of the interested party. The alternative details section on the Property Upload form gives you the option to appoint a trusted third party, if you are not comfortable with handling this yourself.

When a prospective buyer indicates that he or she would like to make you an offer on your property, you must advise them that this should be done in writing.

- Cash buyer (100%; no mortgage): ask them to provide evidence of their funds
- Cash buyer (part cash, part mortgage): ask them to provide evidence of their funds and mortgage agreement
- House to sell (not under offer): agree a deal but keep marketing your property. Inform the purchaser that you intend to continue marketing the property until they have a firm buyer in place.
- House to sell (not yet on the market): Do not agree a deal

Once you have agreed (but before you have accepted) an offer from a prospective buyer, you should inform all other interested parties that you will be taking the property off the market. You never know – you may receive a more tempting offer!

Immediately that you agree a deal, you should request the details of the purchaser’s lawyer and surveyor. If these are not received in 48 hours request again and be prepared to speak to other potential buyers. A serious buyer will supply this information within the 48-hours.

As soon as the purchaser’s lawyer’s details are received, pass them to your lawyer. It is advisable to check the lawyer has a “chain checker” department, in order to confirm the status of the buyer. Both sets of lawyers will conduct all the necessary due diligence and will make sure the contract is acceptable to both parties before signing and exchanging.

Prepare to vacate the property leaving it clean and tidy on the completion date agreed. Take meter readings of utilities and inform service providers. Remember, once your lawyer has received the funds and the keys are released the sale is completed and the property is no longer yours.

Once you have found a property you would like to purchase, contact a lawyer and discuss terms of employment: this is a contractual arrangement that details the precise nature of the services they will provide.

Where necessary and at the start of your property search choose a recognised mortgage lender. This will enable you to see exactly how much you are entitled to borrow, and what your monthly repayments will be. Use our financial information tab for information about mortgages. Completing the mortgage application form and returning it to the lender as soon as possible, will save time and worry when a property is found.

Most properties will also require a full Property Survey as part of the contract: you can find more details on this in our Surveyors Information tab.

At this stage, you and your vendor should exchange lawyers’ details. Both sets of lawyers will conduct all the necessary due diligence and will make sure the contract is acceptable to both parties before signing and exchanging.

Arrange for the deposit funds – usually 10% - to be transferred to your solicitor’s clients holding account for use on exchange of contracts.

The purchaser will arrange for buildings insurance cover – see Insurance information tab. This will insure the asset between exchange and completion, whilst the seller may still have the property insured there is a liability for the purchaser to still complete even if the property burnt down or damage occurred to the building during this period.

Make sure that the necessary funds are transferred to your lawyer for completion. Your lawyer will have made sure that any mortgage funds are also in place. Completion funds are transferred to the seller’s lawyer and the keys to your new home are released.

Inform all service providers that from the date of completion you are the new owner and where possible send a meter reading for that date. This will avoid any problems regarding unpaid accounts up to the date of completion.

Documents which must be included in every HIP are:

• A copy of the lease and commonhold documents (where appropriate)
• The Home Information Pack Index:
  this lists the documents contained in the HIP. If a document that must be included is unavailable, the Index must say so, give the reason it is missing, and list what steps are being taken to get it
• The Property Information Questionnaire (PIQ): this needs to be completed by the seller. It provides a helpful checklist of simple information about a property
• Energy Performance Certificate: this gives homeowners, tenants and buyers information on the energy efficiency of their property. New homes sold 'off-plan' will need to include a Predicted Energy Assessment (PEA). This should be replaced by an EPC when construction of the property is complete.
• Sustainability information (applies to newly built homes): this measures the environmental impact of a new home, and must include either:
  - a certificate (or interim certificate) showing the sustainability of the home assessed against the standards under the Code for Sustainable Homes, OR
  - a nil-rated certificate where the property has not been assessed against the Code
• Sale statement: this provides some basic information about the property, including the address of the property being sold, whether the property is freehold, leasehold or commonhold, whether the property is registered or unregistered, and whether or not the property is being sold with vacant possession
• Evidence of title: proving current ownership of the property
• Standard searches: evidencing a full search of the local land charges register for the property being sold.
• Further information may be provided at the vendor’s discretion, where appropriate: your lawyer will be able to advise you on any supporting information that your buyer may find useful.

What type of properties do require a HIP as part of the sale process?

• Any residential property
  
  

You don’t need a HIP for:

• Non-residential properties
• Properties limited by law to use as holiday accommodation or occupation for less than 11 months per year
• Properties where there is no marketing (e.g. if you are selling to a member of your family)
• Mixed sales, (e.g. a shop with flat)
• ‘Portfolio property sales’ (e.g. a sale of two properties together)
• Properties not being sold with complete vacant possession, for example with a sitting tenant
• Unsafe properties or those due to be demolished
• Properties sold through the ‘Right to Buy’, ‘Right to Acquire’ and ‘Social HomeBuy’ home ownership schemes

Securing a mortgage before you find a property

Many buyers choose to get a mortgage agreement from a lender before they make a decision on a property. Securing a ‘DIP’ (Decision in Principle) has the dual benefit of saving time when an ‘ideal’ house has been found, and it ensures that the buyer keeps within their budget.
A range of factors influence a lenders’ decision to issue a DIP. These include your income, your employment status and the type of property you are seeking.

The application process

When you apply for your mortgage, a professional valuation will be carried out on the property you wish to purchase. This will give the lender a good indication of the value of the property and will enable them to make a realistic mortgage offer. Borrowers have to pay for these valuations, and most mortgage lenders will provide you with a copy of the valuation.

The mortgage process: a step-by-step guide

1. The formal application
You will be required to provide evidence of your income, identity, current address, and a previous lender or landlord’s referecnce.

2. Reference checks
The lender may request written references from employer and bank (or accountant if you're self-employed) and your current lender or landlord. They will also run credit checks.

3. Mortgage valuation
The lender will have the property valued to make sure it's worth the price you've agreed to pay. If not, it will affect how much they will lend.

4. The formal mortgage offer
If the lender is happy with the valuation and references, a formal offer is made, and is usually sent to you and your solicitor. Once the solicitor has signed and returned the offer documents your lender is committed to providing the money. The mortgage offer will require you to take out buildings insurance, in case something happens to the property before you've paid off the mortgage.

5. Exchange and completion
Once you have a formal mortgage offer, your solicitor can agree a date to exchange contracts with the seller's solicitor. At this time you usually pay a percentage of the purchase price as a non-refundable deposit and commit to paying the rest on the agreed completion date (the date on which when the property becomes legally yours).

Different types of survey:

Different types of surveyor:

Mortgage Valuation Survey: a short report carried out by the mortgage lender to ensure that the property is worth the money they are lending to you. Mortgage Valuation Survey will also provide you with an Energy Performance Certificate (EPC) – now an essential document for every home.

Home Condition Report: contains information about the physical condition of a property, which sellers, buyers and lenders will be able to rely on legally as an accurate report. The Home Condition Report is often included in the HIP (Home Information Pack) as a piece of supporting information for prospective buyers.

Homebuyer Survey: also known as a Homebuyer’s Report, this is a survey completed to a standard format and is most suitable for conventional properties built in the last 150 years that are in reasonable condition and that do not require renovation.

Building / Full Structural Survey: a comprehensive inspection of a property, suitable for all types of home, especially listed buildings, older properties, buildings constructed in an unusual way, and properties that have had extensive alterations or that require renovation. This is an extremely comprehensive and highly useful type of survey, as it can uncover aspects of a property that less detailed surveys would possibly miss. Problems such as rising damp, dry rot, damaged timbers, subsidence, old or damaged damp-proofing and other hard-to-spot issues can all be uncovered by a good structural survey. As they can significantly affect the value of a property, this is one survey that it is well worth spending money on.

Building surveyor: will be able to advise on the design considerations and the construction of new buildings and repairs or restorations for existing buildings

Quantity surveyor: will manage all costs relating to building projects, from initial calculations to final figures.
Construction surveyor: will oversee and provide advice on large-scale construction projects, such as office blocks and housing estates

Land/Topographical / Geomatics surveyor: will use satellite images as well as other surveys to provide mapping information of the varied landscape of the Earth's surface. This data is then used to make important decisions about the best places to locate a building

Environmental surveyor: will determine and monitor the effects of buildings on the environment

Rural surveyor: will value rural properties and any attached assets such as farms and farm machinery. They also advise landowners when dealing with local authorities

Party wall surveyor: will oversee any work that is on or close to a boundary – for example, the erection of a new structure, changes to an existing structure or an intention to carry out excavations.

Hydrographic surveyor: specialises in precise positioning, data acquisition and processing in marine environments. The role involves measuring and mapping the world's underwater surfaces and studying the morphology (construction) of the seabed.

Floor plans

Commissioning a floor plan for your property is not expensive, and can significantly raise interest from prospective buyers. A good floor plan is more effective than large amounts of descriptive text, as it can enable a buyer to relate his or her living needs to your home, and imagine small alterations that they may have in mind.

• Floor plans must be drawn by a professional – only professional plans will be accepted as floor plan links
• Measurements must be in both metric and imperial formats
• Clearly label the names of each room
• Indicate whether doors open inwards or outwards
• Try to include fixtures that are fixed and included in the sale
• Show kitchen, bathroom and utility room layouts

Boundary plans

Commissioning a boundary plan for your property is not expensive, the data comes direct from Ordnance Survey. The plans are immensely helpful when selling a property as they give visual guidance on boundaries and acreage. Click on the boundary plan link above to see examples of plans and costs.

• For accurate acreage measurements
• The help visualise boundaries
• To show the property and surrounding outbuildings
• To show the position of the property in the village or on a street

Photography

A great deal of property photography relies on common sense, such as choosing a sunny day and finding a flattering angle from which to photograph the rooms. For the very best results, you may decide to consult a professional photographer, who will be able to give you tips on more advanced techniques, such as specialised lighting and spatial awareness. For rental and holiday home property – use a more varied selection of photographs showing the surrounding area, local facilities, views from the property, action pictures: especially good for beach houses, skiing chalets etc…

• Experiment by taking photographs of your property at different times of the day: you may be surprised at how the changing light can create completely different ‘look’
• Try aerial photography to create a better visual awareness of the rooms
• Short video clips (for example a ‘walk-through’ of a downstairs or upstairs) can provide prospective buyers with an excellent idea of the layout and ambience of your property

• upload up to 10 images which run as a slide show
• provide a more detailed description of the property
• provide a list of local information and facilities, schools and activities
• provide directions and transport links, especially useful for holiday property