The Process of Buying a New Home

Buying a new home is a big decision. It’s the single most expensive decision the vast majority of people will ever make, but it’s an investment in your future and few can deny the advantage of owning your own bricks and mortar. Elan Homes regularly sells homes to people in this position, and naturally, everyone wants to get through the process as quickly as possible. It’s important to know how the process works and how long it takes.

 

New Homes Fast

 

It’s nearly always faster to buy a new home. The developer sets a price and sells the house. They aren’t interested in looking at who the best buyer is. Buyers know the house is in perfect condition, so there’s no wasted time on lengthy housing inspections. The process goes through quicker because there’s little negotiation and the buyer can rest assured at the quality of the building.

 

Step 1 – Get the Lowdown on the Fees

 

Most home buyers will have to contend with three different fees upon buying a home. Instruct a solicitor to provide a written estimate of these fees. The fees will always vary depending on the value of the house and are subject to change. The fees displayed here are correct at the time of writing. Check the official government website for further updates on them.

 

  1. Local Authority Search fees are for any planning decisions which might influence the new home.
  2. Land Registry fees are fixed by the government and go towards registering who owns the property. The Land Registry takes the place of a physical paper deed.
  3. Stamp Duty applies to any house worth over £125,000. The cost of stamp duty goes up depending on how much the house is worth. Anything over £500,001 will amount to 4% of the house’s value.

 

Step 2 – Search for a Mortgage

 

Find a mortgage for the home, assuming this isn’t a cash transaction. Make sure the lending institution is registered with the Financial Standards Authority (FSA). A lender who isn’t registered with the FSA isn’t accountable and can easily supply unfair terms without being penalised by the organisation.

 

Step 3 – Sign the Missive

 

A missive is usually the second deposit. It’s the main document because it makes the purchase legal for the first time. Once it’s legally binding both parties need to agree to any cancellation or the buyer must pay the money for the home and the seller must relinquish ownership.

 

Think carefully before signing the missive. It’s not too late to turn back.

 

Step 4 – The Settlement Deal

 

The settlement is the day where ownership of the home changes. After concluding the settlement, mortgage payments will begin and the house will officially become the property of the buyer’s. The seller has no legal right to the home or anything in it after the settlement is finalised.

 

It all starts with finding a good solicitor. Remember to spend some time searching for a good solicitor. These professionals go the extra mile and will make sure the fees remain as low as possible. They’ll also check all the terms and conditions to make sure nothing has gone awry with the paper work.