I want to buy a property. What are my first steps?
First you should work out how much you may be able to borrow. The amount you can borrow will depend on the size of your deposit and your income. You should arrange to meet a mortgage advisor ideally before you start your property search as you may be able to afford more than you realise. Please note that we can provide assistance and refer to a suitably qualified independent broker. For further information please click here
How do I view a property?
You will need to contact the estate agent to register your interest. The estate agent will also require consent to record your details, which will be placed securely on their database. To ensure you receive suitable properties that satisfy your requirements, it is recommended that you disclosed further details such as your preferred property type, location and budget, etc. This way you will receive suitable property details which may have been missed previously.
How do I make an offer?
You will need to contact the estate agent acting on behalf of the vendor who will present your offer to the seller. You will also need to confirm your buying position i.e. whether you have a property to sell, etc. and your financial circumstances i.e. whether it’s a cash offer or subject to mortgage, together with proof of funds. By now you should have also received an Agreement in Principle from your mortgage broker. Should your offer be rejected, the estate agent will conduct any further negotiations between you and the seller.
My Offer has been accepted, what next?
You should now contact your mortgage advisor who will submit a formal application for the amount required if the purchase is subject to a valuation for secured lending. You will also need to instruct a solicitor/ licenced conveyancer to act on your behalf. It may also be advised that you contact a surveyor to prepare an RICS HomeBuyers Report who will advise on the condition of the property prior to purchase. For further information please click here.
Do I need a solicitor?
As a buyer it’s important to have a solicitor lined up before you start the process of purchasing a property. If you haven’t done so, don’t worry – you can get in touch with us and we will put this in place. A good solicitor is a wise investment to ensure the move goes smoothly and efficiently.
How Much Will My Council Tax Bill Cost?
Council Tax is charged on a daily basis and an annual bill is sent covering each financial year starting on the 1 April.
The Welsh Government sets the Council Tax bands for Wales and the table below shows the current range of values for each band (as at 1st April 2020):
- Band A = under £44,000
- Band B = £44,001 to £65,000
- Band C = £65,001 to £91,000
- Band D = £91,001 to £123,000
- Band E = £123,001 to £162,000
- Band F = £162,001 to £223,000
- Band G = £223,001 to £324,000
- Band H = £324,001 to £424,000
- Band I = £424,001 and above
The links to the relevant Local Authority Council Tax Band Calculations are as follows.
How Much Stamp Duty will I have to pay?
Stamp Duty was replaced by Land Transaction Tax in Wales in 2018. The amount you will spend on Land Transaction Tax is dependent on the purchase price. It is also worth noting that should you purchase a buy to let or second home an additional 3% surcharge will be added to each stamp duty band. For further information please click here
What happens when contacts have been exchanged?
Exchange takes place when both parties i.e. buyer and seller have signed the contracts. Both your solicitor and the seller’s solicitor would have already agree a completion date. Unless the property has exchanged and completed simultaneously you will also need to pay a deposit, usually 10% of the agreed purchase price, which will be transferred to the seller’s solicitor. It is at this point the transaction becomes legally binding. The remaining monies will be paid on completion.
What is the difference between Freehold and Leasehold?
If you buy a property Freehold, it means you have full ownership of the property until you decide to sell. A Freehold estate in land is where the owner of the land has no time limit to his period of ownership. If you buy a Leasehold property, it means you have part ownership and the right to live there for a fixed time only, usually the balance of either 99 or 125 years (in some instances 999 years) although leases may have already been extended. Leasehold properties are generally flats and maisonettes, however, the incidence of a Leasehold houses is increasing. It is also important to note that the value of a lease decreases with time, but you can usually extend your lease or buy a new one. The price to renew a Lease will however increase as the remaining term (no. of years left) decreases, which can be costly if you do not receive the correct advice.
I want to Buy a Property. What are my First Steps?
First you should work out how much you may be able to borrow. The amount you can borrow will depend on the size of your deposit and your income. You should arrange to meet a mortgage advisor ideally before you start your property search as you may be able to afford more than you realise. Please note that we can provide assistance and refer to a suitably qualified independent broker. For further information please click here.